Kyrgyzstan’s EEU accession shifts trade away from China

/By AzerNews/

By Aynur Karimova

By becoming a member of the Russia-backed Eurasian Economic Union, Kyrgyzstan will gain a new customer for its goods, but will loose its main supplier, Bruce Pannier believes.

The expert on Central Asia and Senior Correspondent at Radio Free Europe/Radio Liberty told Azernews on September 2 that accession to the EEU allows Kyrgyzstan to export its domestically produced goods to Kazakhstan without any penalties, but the country will not be able to import products from China without charging higher import duties.

"So now Kyrgyzstan has its main customer back but is losing its supplier," he said commenting on Kyrgyz President Almazbek Atambayev's recent statement on how the urgency of food security issues was resolved with accession to the EEU.

Pannier noted that Central Asian Kyrgyzstan is able to provide its 5.5-million population with fruits and vegetables, but the country depends on the import of grain from neighboring countries. In this regards, President Atambayev’s comment about food security is accurate.

"Kyrgyzstan’s northern neighbor Kazakhstan is one of the top 10 grain exporters in the world. Under the regulations of the predecessor of the EEU – the Customs Union of Belarus, Russia, and Kazakhstan – special tariffs and duties were to be applied to exports outside their three-country union, meaning Kyrgyzstan had to pay more for Kazakh grain. Now, as a member of the EEU, these extra fees should be lifted and Kyrgyzstan should be able to purchase grain, meat, dairy products, and other goods from Kazakhstan at preferential rates," the expert added.

Thus, Kyrgyzstan’s membership in the EEU should provide the country with some guarantees; particularly Bishkek will not face shortages or sharply rising costs from member-states. Also, Kyrgyzstan will be able to develop export potential by exporting agricultural products to EEU countries.

In July 2015, Kyrgyzstan officially became a member of the EEU after passing an accession process by the parliaments of the other members – Russia, Kazakhstan, Belarus and Armenia.

The document on Kyrgyzstan joining in the Eurasian Economic Union was signed at the Supreme Eurasian Economic Council session in Moscow in December 2014.

Almazbek Atambayev, the President of Kyrgyzstan, signed into law the accession of the country to the EEU on May 22.