The EEC has summed up the results of the first year of the Kyrgyz Republic membership in the EAEU

The EEC has summed up the results of the first year of the Kyrgyz Republic membership in the EAEU

August 12 marks the first anniversary of the Kyrgyz Republic's accession to the EAEU Treaty. Over this period the country has increased its industrial output and agricultural production, access of Kyrgyz products to the markets of other Member States became easier. It has become easier and more comfortable for migrants from Kyrgyzstan to temporarily reside and work in the Member States.


Over the past year, a lot of work was done, which now is bringing real results. The opening of customs borders allowed Kyrgyzstan companies to significantly reduce the time needed for delivery of its goods to markets of the other Union countries. Therefore, many manufacturers have become able to considerably increase export of their products. Additional benefit is the fact that the EAEU has legally enshrined and successfully implemented a simplified procedure for customs declaration for international transportation with vehicles registered in the EAEU Member States.
The EAEU creates favourable conditions for the development of trade industries and agro-industrial complex of Kyrgyzstan. According to the EEC, the agricultural production in the Kyrgyz Republic increased by 2.9% and industrial output by 8.6% in January through June 2016 as compared to the same period of 2015.
The tax burden for business has been reduced: before joining the Union the VAT was calculated on the basis of the value of the goods plus the cost of expenses related to the transportation of these goods; today, according to the EAEU rules the tax is charged only for the contract value of the goods. Individuals are also exempt from double VAT taxation upon importation of goods of personal consumption from the EAEU countries.
Another positive side is the fact that Kyrgyzstan became part of the single market of services, which operates in 43 sectors. Such sectors include the following services: construction and engineering; agriculture and forestry; wholesale and retail trade; franchising, renting of machinery and equipment without operators, and many others. As a result, the Kyrgyz entrepreneurs can operate in these areas in the EAEU markets without additional establishment of a legal entity. Permissions on these activities and professional qualification of service providers received in the Kyrgyz Republic are recognized automatically.
Press-release at the official Eurasian Economic Commission web-site