Non-Tariff Measures in Agricultural Sector in Kazakhstan and
Kyrgyzstan
Zalina Enikeeva, University of Central Asia
UN ESCAP, 28 November 2018
CENTRAL ASIA
• Kazakhstan
– Square: 2 724 900 sq.km (1.8% of the world’s land)
– Neighboring countries:Russia, China, Kyrgyzstan, Uzbekistan and Turkmenistan
– Capital: Astana
– Population: 17 926,5
– Resources: coal, oil, gas, non-ferrous and ferrous metals
• Kyrgyzstan
– Square: 199 999 sq.km
– Neighboring countries: Kazakhstan, China, Tajikistan, Uzbekistan
– Capital: Bishkek
– Population: 6 140,2
– Resources: gold, coal, antimony, hydropower
SOME STATISTICS
Kazakhstan Kyrgyzstan
2007 2017 2007 2017
GDP growth, %
8.9 4 8.5 4.6
GDP per capita
(constant 2010 US$)
8523 10857 819 1070
Trade turnover, mln. USD
80511.7 77646.8 4109.6 6259
Export, mln. USD
47755 48342.1 1321 1764.3
Import, mln. USD
32756 29304.7 2788 4494.7
Sources: World Development Indicators, National Statistic Committees
AGRICULTURE
16
15
12 12
11
9
10
89
8 8
7
6
5 65
6
55
4 5 45 5 4
39 40 4040
4038 38
36 36 35 35
3432
32 3130
2928
2626
24
20
18 18 18
0
5
10
15
20
25
30
35
40
45
0
2
4
6
8
10
12
14
16
18
199
3
199
4
199
5
199
6
199
7
199
8
199
9
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
Kazakhstan
Agriculture, forestry, and fishing, value added (% of GDP)
Employment in agriculture (% of total employment)
39 38
41
46
41
3635 34 35
34
3028 29
27
23
1917
17 17
15 15 1413 12
4649
54
58
3936
34
30 30 29 3032 32
2927 27
0
10
20
30
40
50
60
70
0
5
10
15
20
25
30
35
40
45
50
199
3
199
4
199
5
199
6
199
7
199
8
199
9
200
0
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
Kyrgyzstan
Agriculture, forestry, and fishing, value added (% of GDP)
Employment in agriculture (% of total employment)
Source: World Development Indicators
AGRICULTURAL SECTOR
• Kazakhstan
• Crop production – 55.1%
• Livestock production – 44.6%
• Agricultural services – 0.3%
• Wheat, fruits and vegetables, barley, cotton, sugar beets, sunflowers, flax, and rice;
• Beef cattle, chicken;
• Wool, cow milk, and eggs are the other major animal products of the country.
• Kyrgyzstan
• Crop production – 50.26%
• Livestock production –47.6%
• Services – 2.11%
• Wheat, barley, potatoes, vegetables and fruits, fodder and technical (cotton, tobacco, sugar beet) crops.
• Animal husbandry: breeding of dairy and beef cattle, sheep and goats, horses, and poultry;
• Small-scaled farmers
SDGs
Kazakhstan and Kyrgyzstan:
• Establishment of own national Sustainable Development Goals coordination structures;
• Adoption of Sustainable Development Goals targets;
• Development of national indicators, corresponding sub-targets
Eurasian Economic Union (EAEU/EEU)
• The Eurasian Economic Union is an international organization for regional economic integration;
• The Union was formally established on January 1, 2015;
• Four founding members — Russia, Kazakhstan, Belarus and Armenia;
• Kyrgyzstan joined on August 12, 2015;
• 182,7 million people;
• 14% of the world’s firm land;
• The EAEU provides for free movement of goods, services, capital and labor, pursues coordinated, harmonized and single policy in the sectors determined by the Treaty and international agreements within the Union;
• Eurasian Economic Commission (EEC) is a permanent regulatory body of the Eurasian Economic Union;
• The Treaty on the EAEU provides for non-use by member states of non-tariff regulation measures in mutual trade;
EAEU COVERAGE
customs tariff and non-tariff regulation;
customs regulation;
technical regulation;
sanitary, veterinary and sanitary and quarantine phytosanitary measures;
enrollment and distribution of import customs duties;
establishment of trade regimes against third parties;
foreign and mutual trade statistics;
macroeconomic policy;
industrial and agricultural subsidies;
energy policy;
natural monopolies;
government and (or) municipal procurement;
mutual trade in services and investments;
transportation;
monetary policy;
intellectual property;
financial markets (banking, insurance, foreign exchange market)
Required documents for export to the EAEU countries:
• Compliance statement
• Phytosanitary certificate (fruits and vegetables)
• Veterinary certificate (products of animal origin)
• Contract with the buyer / receiver of products (if any)
• “EAC” labelling
• Invoice
• Cargo transportation way bill
WTO
State WTO membership
Armenia 5 February 2003
Belarus Negotiating process
Kazakhstan 30 November 2015
Kyrgyzstan 20 December 1998
Russia 22 August 2012
EAEU
• Common Customs Tariffs (CCT) is a set of customs duties applied to goods imported into the customs territory of the Union from third countries;
• Russian Federation commitments in the WTO are implemented in the Common Customs Tariff of the EAEU;
• Adjustment of duty rates in accordance with the schedule of the implementation period of the binding commitments of the Russian Federation to the WTO;
• Average tariff in Kyrgyzstan before joining to the EAEU – 5.3%, after – 9%;
• Zero rate of value added tax in mutual trade;
• Approved 46 EAEU technical regulations, of them 39 came into force;
• There are product identity requirements for water. E.g. water can be identified as natural drinking water when it is an underground water with mineralization up to 1 gram per cubic decimeter, etc.
Kazakhstan and Kyrgyzstan: NTMs in the EAEU
• Kazakhstan has 393 (of 629) measures related to the EAEU;
• Kyrgyzstan has 392 (of 596) measures related to the EAEU;
NTMs and the EAEU
Partners affected
NTM code Measure description Date Products
All members SPS – A41
There are requirements on total bacterial count and presence of
salmonella in non-edible raw materials of animal origin used for production of
fodder (e.g. CFU/G is 5 x 10^6)
6/7/2016
Non-edible raw materials of animal
origin used for production of fodder
for pets and fur-bearing animals
All members TBT – B31
There are certain labelling requirements for fish and fish
products. E.g. labels for fish and fish products must contain the following
information: name of the product, type of processing, etc.
9/1/2017Fish and fish
products (fishery products)
All members SPS - A64
Requirements for storage and transportation of grain includes requirements on safety of barns
(grain storages) - it is restricted to store toxic products next to grain;
transportation means for grain should provide necessary levels of safety
7/1/2013
Grain for food and feed (grain –
products of grain varieties, pulse crops,
oilseeds used for food or feed)
NTMs and the EAEUPartners affected
NTM code Measure description Date Products SDG
All members
SPS – A41
There are requirements on total bacterial count and presence of salmonella in non-edible raw materials of animal origin used for production of fodder (e.g. CFU/G is 5 x 10^6)
6/7/2016
Non-edible raw materials of
animal origin used for
production of fodder for pets and fur-bearing
animals
Goal 3. Ensure healthy lives and promote
well-being for all at all ages
All members
TBT – B31
There are certain labelling requirements for fish and
fish products. E.g. labels for fish and fish products must
contain the following information: name of the
product, type of processing, etc.
9/1/2017Fish and fish
products (fishery products)
Goal 3. Ensure healthy lives and promote
well-being for all at all ages
All members
SPS - A64
Requirements for storage and transportation of grain includes requirements on
safety of barns (grain storages) - it is restricted to store toxic products next to grain; transportation means
for grain should provide necessary levels of safety
7/1/2013
Grain for food and feed (grain –
products of grain varieties, pulse crops, oilseeds
used for food or feed)
Goal 3. Ensure healthy lives and promote
well-being for all at all ages
NTMs and Kazakhstan
Partners affected NTM code Measure description Date Products
Turkey SPS – A51 Imported dairy products coming from Turkey need to
undergo heat treatment
8/5/2016 Dairy products
All members OTH – H9 Imports of ethanol and alcohol products can only be done by
legal entities registered in Kazakhstan (residents of
Kazakhstan)
6/16/1999 Alcohol products (including ethanol)
Armenia/Turkey/Kyrgyzstan/Mongolia/T
unisia/
SPS – A11 It is temporary restricted to import live animals that are
prone to foot-and-mouth disease, meat and dairy products, raw materials
obtained from animals that are prone to foot-and-mouth disease, used equipment intended for storage or
slaughter of animals prone to foot-and-mouth disease from
Armenia/Turkey/Kyrgyzstan/Mongolia/Tunisia/
Live animals that prone to foot-and-mouth;
- Meat and dairy products;- Raw materials obtained
from animals that are prone to foot-and-mouth disease;- Used equipment intended for storage or slaughter of animals prone to foot-and-
mouth disease;- Feed;
NTMs and Kazakhstan
Partners affected
NTM code Measure description Date Products SDG
Turkey SPS – A51 Imported dairy products coming from Turkey need to undergo heat treatment
8/5/2016
Dairy products Goal 3. Ensure healthy lives and promote well-being for all at all ages
All members OTH – H9 Imports of ethanol and alcohol products can only be done by legal entities registered in Kazakhstan (residents of Kazakhstan)
6/16/1999
Alcohol products (including ethanol)
Goal 3. Ensure healthy lives and promote well-being for all at all ages - ?
Armenia/Turkey/Kyrgyzstan/Mongolia/Tunisia/
SPS – A11 It is temporary restricted to import live animals that are prone to foot-and-mouth disease, meat and dairy products, raw materials obtained from animals that are prone to foot-and-mouth disease, used equipment intended for storage or slaughter of animals prone to foot-and-mouth disease from Armenia/Turkey/Kyrgyzstan/Mongolia/Tunisia
Live animals that prone to foot-and-mouth;- Meat and dairy products;- Raw materials obtained from animals that are prone to foot-and-mouth disease;- Used equipment intended for storage or slaughter of animals prone to foot-and-mouth disease;- Feed;
Goal 3. Ensure healthy lives and promote well-being for all at all ages
NTMs and Kyrgyzstan
Partners affected
NTM code Measure description Date Products covered
All members
EXP – P7Document sets the basis for soft
lending of export-oriented agricultural companies
2/10/2017 -2/10/2020
Export-oriented agricultural products
Applied against
EEU members
PC – F9
In order to keep receiving full amount of indirect taxes, Kyrgyz
Republic defined minimum level of control prices for certain goods.
The meaning of this measure is to define minimum prices that will be used in the calculation of indirect
taxes.
5/25/2016
Sugar; Wheat flour from durum wheat;
Wheat flour from soft wheat and spelt;
Timber; Rice; Eggs
All members
OTH – H9Foreign legal entities can't import
ethyl alcohol 10/13/2009 Ethyl alcohol
Kazakhstan
SPS – A84
Imported (food) products of animal and plant origin are subject to
documentary and physical inspection/control
5/25/2016Food products of animal
and plant origin
NTMs and KyrgyzstanPartners affected
NTM code
Measure description DateProducts covered
SDG
All members
EXP –P7
Document sets the basis for soft lending of export-oriented agricultural
companies
2/10/2017 -2/10/2020
Export-oriented agricultural
products
Goal 17. Strengthen the means of implementation
Goal 12. Ensure sustainable consumption and production
patternsGoal 8. Promote sustained, inclusive and sustainable economic growth, full and
productive employment and decent work for all
Applied against
EEU members
PC – F9
In order to keep receiving full amount of indirect taxes, Kyrgyz Republic defined minimum level of control
prices for certain goods. The meaning of this measure is to define minimum prices that
will be used in the calculation of indirect taxes.
5/25/2016
Sugar; Wheat flour from durum
wheat; Wheat flour from soft
wheat and spelt; Timber; Rice;
Eggs
Goal 8. Promote sustained, inclusive and sustainable economic growth, full and
productive employment and decent work for all
All members
OTH –H9
Foreign legal entities can't import ethyl alcohol
10/13/2009 Ethyl alcoholGoal 3. Ensure healthy lives and promote well-being for all at all
ages - ?
Kazakhstan
SPS –A84
Imported (food) products of animal and plant origin are subject to documentary and physical inspection/control
5/25/2016 Food products of animal and plant
origin
Goal 3. Ensure healthy lives and promote well-being for all at all
ages
CONCLUSION
• The topic of non-tariff measures is quite new for Central Asia;
• The frequency of its imposing might be higher in the future;
• Analysis of NTMs from the sustainable development point of view