On 21 May, Kyrgyzstan signed a law ratifying treaties on its entrance into the Customs Union and the Eurasian Economic Union. Almazbek Atambayev’s government promises economic progress and the development of the country’s own industries. However, thousands of business owners remain uncertain what this new future will mean for them.
Kyrgyzstan, a member of the World Trade Organisation, has traditionally benefited from cross-border trade. Low taxes and customs duties, as well as a geographically advantageous position (historically, its territory was located on the Silk Road), have made this country a transit zone for goods heading from China to Europe. Following the break-up of the Soviet Union, the country began to develop its re-export potential – though with little trickle-down effect.
Export economy
Kyrgyzstan’s re-export sector, with goods coming from China, India, and Turkey, provides the country with the majority of its revenue. In 2014, Kyrgyzstan’s GDP was $7bn. According to China’s statistics, direct imports from China to Kyrgyzstan are worth $10bn.
