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Best practices in export promotion:
Experiences in Latin America, Europe and
Central Asia, IAMO Halle (Saale),
Germany, on 24-25 May 2016
Creation of conditions for export of goods and services
• Adoption of the Export Development Plan of the
Government of the Kyrgyz Republic for 2015–2017
Government of the Kyrgyz Republic
• Joining the Eurasian Economic Union from
12.08.2015
EDP
Goal and Objectives of EDP
GOAL is to develop the competitive export potential for
sustainable economic growth
Objectives:
а) Creating basic conditions for achieving a more attractive
foreign trade regime;
б) Improving competitiveness of goods and the liability of
producers for their goods
National Sustainable Development Strategy of
the Kyrgyz Republic for 2013–2017
EDP was developed:
• by using ITC method;
• by involving into the development
process all key stakeholders;
• with ITC’s and GIZ’s significant support
and participation;
• by inviting experts from Kazakhstan and
Europe.
EDP’ FPs among development partners
Private sector buy-in
Over 250 people from the private sector participated to the
EDP’ consultations
Intermediary findings and results
–Sector profile
–Markets’ trends and requirements
–Value chain mapping and analysis
–Problem tree
–Buyers’ point of view
–Future value chain
–Draft plan of action
–Vision
PB tree
Problem tree
EDP is focused on achievement of specific objectives in
areas such as:
• Access to trade information;
• Improvement of capacity of entities and institutes;
• Trade promotion;
• Export support and promotion;
• Trade facilitation;
• Development and support of a quality infrastructure;
• Decreasing the tax burden, Providing exporters with
access to financial resources.
EDP
Export value
Export growth
World market
share
Relative
trade balance
Export
performance
World import
growth
Share of attractive
markets
in world imports
Tariff Advantage
World market
Prospects
World
markets
Product quality
Unit labour costs
Production cost
Process technology
Product and process
Infrastructure cost
Up-/down-stream
linkages
Supporting industries
Competitiveness
Prospects
Domestic supply
conditions
Export potential index
Full-time employment
equivalent
Job creation
Rural development
Poverty reduction
Industrialisation
Foreign currency
generation
Environmental
sustainability
Socio-economic impact
Priority for export promotion
Identification of priority sectors
Criteria for Sector Selection S1 S2 S3 S4 S5
International demand x x x
Export performance x x x x
Scope for diversification and value addition x x x
Comparative advantage x x x
Contribution to employment and socio-economic
development
x x x
Ability to attract domestic and foreign investment x x x
Existing and potential government and donor support x x x
Potential for integrating into global value-chains x X x
Potential for increasing regional trade integration x x x x
Identification of priority sectors
Several criteria were taken into consideration to select the sectors
Identification of priority sectors
Priority sectors overview
Priority sectors
Tourism
Fruit and
vegetables
Fruits and
vegetables
Raw and
processed meat
Milk and dairy products Clothing
Bottled water
Cross-sector functions
• Quality Management
• Trade information and promotion
• Access to finance
• Trade facilitation
Objective Indicators
Responsible
entity
Timeframe
1.1 Enhance access to trade information
 Number of trained specialists
 Number of agreements signed
 Number of surveys conducted
MoE
31 December
2017
Activities Expected outcomes
Responsible
entities
Timeframe Resources
1.1.1
Carry out research studies and identify a
list of problems in the area of trade
information exchange and dissemination
for the purpose of export transactions
 Report on the studies conducted
 Recommendations on solutions to
problems
MoE 31 July 2015
Attraction of
donor aid
1.1.2
Enhance capacity of TSIs in collecting,
analysing and delivering trade
information
Quality of the services provided is
improved
MoE, MALR,
Ministry of Energy
and Industry
(MEI), Ministry of
Culture,
Information and
Tourism (MCIT)
31 December 2016
Attraction of
donor aid
1.1.3
Sign agreements on cooperation on
export promotion between the MoE and
business associations
 Partnership relations between the
public and private sector are
established in the area of export
promotion
 Regular meetings are conducted
(not less than once a quarter)
MoE, SWCSE
31 March 2015
31 December 2017
Within budget
allocations
1.1.4
Ensure cooperation with foreign TSIs
over trade information exchange and
dissemination
 Cooperation agreements are
signed with foreign TSIs
 Availability and updates of the
trade information provided by
foreign TSIs
SWCSE 31 December 2017
Within budget
allocations
1.1.5
Conduct marketing surveys on product
promotion of the priority sectors in target
markets (including with consideration of
Kyrgyz Republic accession to the CU)
 Reports on the surveys
 Recommendations
MoE, SWCSE,
ministries and
agencies
31 December 2017
Attraction of
donor aid
Plan of activities of the Kyrgyz Republic for 2015–2017
High level endorsement (Decree N174 , 31.03.2015)
EDP implementation management
Council for Business Development
and Investments under the
Government of the Kyrgyz Republic
Ministry of
Economy
EDP Secretariat
Implementation
coordination
Resource
mobilization
Progress Monitoring
Interaction with all
stakeholders
EDP Action plan
EDP Action plan based on realization of 51 activities.
Governmental organizations responsible for EDP
implementation, realize all actions, 28 of which will be fully
implemented by means of state budget.
12 actions have been already realized.
Meetings of focal points of responsible governmental
organizations are being organized on the regular basis to
monitor EDP implementation.
Results of implementation
Trade information and Export promotion
MoUs were signed with priority sectors business
associations;
Support provided to private sector
to participate at number of exhibitions;
Cooperation Agreements were signed with foreign TPO for
exchange of trade information;
Application was sent to EU to obtain status
of GSP+ for the Kyrgyz Republic and on
January 2016 EU granted Kyrgyzstan these
preferences;
Trade facilitation
 In frame of accession to the Eurasian economic
union the national legislation has been brought into
full agreement with legal framework of the EEU
(40 laws and 51 resolutions GKR).
 The requirements of VAT excess refund and
reimbursement are being fulfilled.
 Sales tax for export of goods and services was
canceled.
 Movement of freights from the countries of participants of EEU
has become simpler - procedure of examination and registration of
freights imported from the country-participants of EEU was
excluded.
Quality Management
 Procedures for accreditation of control bodies developed and
approved.
 35 technical regulations of the EEU have come into force.
 4 priority customs border crossing points of the Kyrgyz
Republic and 7 veterinary control check posts have been
equipped.
 Sanitary and phytosanitary types of control on the Kyrgyz-
Kazakh border was cancelled on November 2015.
 Register of veterinary products was placed on Ministry of
Agriculture website.
 18 Kyrgyz livestock enterprises were included
in the register of companies, which can make
deliveries to the territory of the Member States
of the EEU (Russia and Kazakhstan).
 Checklist for inspections of businesses producing milk and milk
products in circulation in the territory of the Customs Union has
been approved .
28 accredited laboratories and 6
certification bodies were included in the
Unified Register of the EEU.
Quality Management
Access to finance
The Kyrgyz-Russian development fund was established.
The Fund began to supply credits to entrepreneurs up to 3
mln. USA dollar through 2 governmental banks since 3
September, 2015
On the project “Financing of Agriculture – 3” 10.2 % of
total loans was issued to the processing industry in 2015.
In order to create agro-technical service centers and
maintenance of agricultural machinery being worked
issuing agricultural business equipment for leasing
A mechanism for the capitalization of the guarantee fund
is being developed. Created 5 public funds. Draft concept
was worked out on the development of Guarantee Funds
in the Kyrgyz Republic until 2020 developed.
Other measures of Export promotion
 The Kyrgyz Republic took part in the World Exhibition "EXPO " and
plans to participate in the Interstate exhibition " 25 years of CIS : New
opportunities of integration and partnership" exhibition and forum
"Eurasian Week" in 2016 in Moscow .
 Agreement on free trade between the Eurasian Economic Union and the
Socialist Republic of Vietnam was signed. Agreement with Vietnam
provides the possibility of increasing exports of raw tobacco and
alcohol products.
 Negotiations with China on trade and economic agreement are in
progress. Agreement, on one hand, will create conditions for market
access for a large number of goods, on the other hand - preferences for
large investment projects.
 The process of signing the agreement on free trade zone with 9
countries, including Egypt , India, Indonesia, Iran, Tunisia, Israel,
Serbia, Singapore and Cambodia, is being worked out.
 The producers, suppliers and exporters who interested in delivery of
goods to foreign markets can address SE "Center "of a single
window". Also, they can be registered in the GE database as an
exporter, for the purpose of finding potential buyers for them in the
future.
 The representative of SE "Center "of a single window" in Moscow
was appointed for domestic production export promotion on the
markets of the Russian Federation
 The system of the green channel was introduced for simplification
of passing of agricultural production to KR and in/from the People's
Republic of China.
Other measures of Export promotion
Thank you for your attention!
Meerim Momunzhanova
Senior specialist of the Trade Division
Ministry of Economy of the Kyrgyz Republic
Office:00 996 312 624951
Mob.:00 996 772 950500
Email: meerim.momunzhanova@gmail.com

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Best practices in export promotion in Kyrgyzstan

  • 1. www.mineconom.gov.kg Best practices in export promotion: Experiences in Latin America, Europe and Central Asia, IAMO Halle (Saale), Germany, on 24-25 May 2016
  • 2. Creation of conditions for export of goods and services • Adoption of the Export Development Plan of the Government of the Kyrgyz Republic for 2015–2017 Government of the Kyrgyz Republic • Joining the Eurasian Economic Union from 12.08.2015 EDP
  • 3. Goal and Objectives of EDP GOAL is to develop the competitive export potential for sustainable economic growth Objectives: а) Creating basic conditions for achieving a more attractive foreign trade regime; б) Improving competitiveness of goods and the liability of producers for their goods National Sustainable Development Strategy of the Kyrgyz Republic for 2013–2017
  • 4. EDP was developed: • by using ITC method; • by involving into the development process all key stakeholders; • with ITC’s and GIZ’s significant support and participation; • by inviting experts from Kazakhstan and Europe.
  • 5. EDP’ FPs among development partners
  • 6. Private sector buy-in Over 250 people from the private sector participated to the EDP’ consultations
  • 7. Intermediary findings and results –Sector profile –Markets’ trends and requirements –Value chain mapping and analysis –Problem tree –Buyers’ point of view –Future value chain –Draft plan of action –Vision
  • 9. EDP is focused on achievement of specific objectives in areas such as: • Access to trade information; • Improvement of capacity of entities and institutes; • Trade promotion; • Export support and promotion; • Trade facilitation; • Development and support of a quality infrastructure; • Decreasing the tax burden, Providing exporters with access to financial resources. EDP
  • 10. Export value Export growth World market share Relative trade balance Export performance World import growth Share of attractive markets in world imports Tariff Advantage World market Prospects World markets Product quality Unit labour costs Production cost Process technology Product and process Infrastructure cost Up-/down-stream linkages Supporting industries Competitiveness Prospects Domestic supply conditions Export potential index Full-time employment equivalent Job creation Rural development Poverty reduction Industrialisation Foreign currency generation Environmental sustainability Socio-economic impact Priority for export promotion Identification of priority sectors
  • 11. Criteria for Sector Selection S1 S2 S3 S4 S5 International demand x x x Export performance x x x x Scope for diversification and value addition x x x Comparative advantage x x x Contribution to employment and socio-economic development x x x Ability to attract domestic and foreign investment x x x Existing and potential government and donor support x x x Potential for integrating into global value-chains x X x Potential for increasing regional trade integration x x x x Identification of priority sectors Several criteria were taken into consideration to select the sectors
  • 14. Priority sectors Tourism Fruit and vegetables Fruits and vegetables Raw and processed meat Milk and dairy products Clothing Bottled water
  • 15. Cross-sector functions • Quality Management • Trade information and promotion • Access to finance • Trade facilitation
  • 16. Objective Indicators Responsible entity Timeframe 1.1 Enhance access to trade information  Number of trained specialists  Number of agreements signed  Number of surveys conducted MoE 31 December 2017 Activities Expected outcomes Responsible entities Timeframe Resources 1.1.1 Carry out research studies and identify a list of problems in the area of trade information exchange and dissemination for the purpose of export transactions  Report on the studies conducted  Recommendations on solutions to problems MoE 31 July 2015 Attraction of donor aid 1.1.2 Enhance capacity of TSIs in collecting, analysing and delivering trade information Quality of the services provided is improved MoE, MALR, Ministry of Energy and Industry (MEI), Ministry of Culture, Information and Tourism (MCIT) 31 December 2016 Attraction of donor aid 1.1.3 Sign agreements on cooperation on export promotion between the MoE and business associations  Partnership relations between the public and private sector are established in the area of export promotion  Regular meetings are conducted (not less than once a quarter) MoE, SWCSE 31 March 2015 31 December 2017 Within budget allocations 1.1.4 Ensure cooperation with foreign TSIs over trade information exchange and dissemination  Cooperation agreements are signed with foreign TSIs  Availability and updates of the trade information provided by foreign TSIs SWCSE 31 December 2017 Within budget allocations 1.1.5 Conduct marketing surveys on product promotion of the priority sectors in target markets (including with consideration of Kyrgyz Republic accession to the CU)  Reports on the surveys  Recommendations MoE, SWCSE, ministries and agencies 31 December 2017 Attraction of donor aid Plan of activities of the Kyrgyz Republic for 2015–2017
  • 17. High level endorsement (Decree N174 , 31.03.2015)
  • 18. EDP implementation management Council for Business Development and Investments under the Government of the Kyrgyz Republic Ministry of Economy EDP Secretariat Implementation coordination Resource mobilization Progress Monitoring Interaction with all stakeholders
  • 19. EDP Action plan EDP Action plan based on realization of 51 activities. Governmental organizations responsible for EDP implementation, realize all actions, 28 of which will be fully implemented by means of state budget. 12 actions have been already realized. Meetings of focal points of responsible governmental organizations are being organized on the regular basis to monitor EDP implementation.
  • 21. Trade information and Export promotion MoUs were signed with priority sectors business associations; Support provided to private sector to participate at number of exhibitions; Cooperation Agreements were signed with foreign TPO for exchange of trade information; Application was sent to EU to obtain status of GSP+ for the Kyrgyz Republic and on January 2016 EU granted Kyrgyzstan these preferences;
  • 22. Trade facilitation  In frame of accession to the Eurasian economic union the national legislation has been brought into full agreement with legal framework of the EEU (40 laws and 51 resolutions GKR).  The requirements of VAT excess refund and reimbursement are being fulfilled.  Sales tax for export of goods and services was canceled.  Movement of freights from the countries of participants of EEU has become simpler - procedure of examination and registration of freights imported from the country-participants of EEU was excluded.
  • 23. Quality Management  Procedures for accreditation of control bodies developed and approved.  35 technical regulations of the EEU have come into force.  4 priority customs border crossing points of the Kyrgyz Republic and 7 veterinary control check posts have been equipped.  Sanitary and phytosanitary types of control on the Kyrgyz- Kazakh border was cancelled on November 2015.  Register of veterinary products was placed on Ministry of Agriculture website.
  • 24.  18 Kyrgyz livestock enterprises were included in the register of companies, which can make deliveries to the territory of the Member States of the EEU (Russia and Kazakhstan).  Checklist for inspections of businesses producing milk and milk products in circulation in the territory of the Customs Union has been approved . 28 accredited laboratories and 6 certification bodies were included in the Unified Register of the EEU. Quality Management
  • 25. Access to finance The Kyrgyz-Russian development fund was established. The Fund began to supply credits to entrepreneurs up to 3 mln. USA dollar through 2 governmental banks since 3 September, 2015 On the project “Financing of Agriculture – 3” 10.2 % of total loans was issued to the processing industry in 2015. In order to create agro-technical service centers and maintenance of agricultural machinery being worked issuing agricultural business equipment for leasing A mechanism for the capitalization of the guarantee fund is being developed. Created 5 public funds. Draft concept was worked out on the development of Guarantee Funds in the Kyrgyz Republic until 2020 developed.
  • 26. Other measures of Export promotion  The Kyrgyz Republic took part in the World Exhibition "EXPO " and plans to participate in the Interstate exhibition " 25 years of CIS : New opportunities of integration and partnership" exhibition and forum "Eurasian Week" in 2016 in Moscow .  Agreement on free trade between the Eurasian Economic Union and the Socialist Republic of Vietnam was signed. Agreement with Vietnam provides the possibility of increasing exports of raw tobacco and alcohol products.  Negotiations with China on trade and economic agreement are in progress. Agreement, on one hand, will create conditions for market access for a large number of goods, on the other hand - preferences for large investment projects.  The process of signing the agreement on free trade zone with 9 countries, including Egypt , India, Indonesia, Iran, Tunisia, Israel, Serbia, Singapore and Cambodia, is being worked out.
  • 27.  The producers, suppliers and exporters who interested in delivery of goods to foreign markets can address SE "Center "of a single window". Also, they can be registered in the GE database as an exporter, for the purpose of finding potential buyers for them in the future.  The representative of SE "Center "of a single window" in Moscow was appointed for domestic production export promotion on the markets of the Russian Federation  The system of the green channel was introduced for simplification of passing of agricultural production to KR and in/from the People's Republic of China. Other measures of Export promotion
  • 28. Thank you for your attention! Meerim Momunzhanova Senior specialist of the Trade Division Ministry of Economy of the Kyrgyz Republic Office:00 996 312 624951 Mob.:00 996 772 950500 Email: meerim.momunzhanova@gmail.com