Joining Customs Union will help Kyrgyzstan export potential
The export potential of Kyrgyzstan will amount to between 20 to 25 per cent for two years after joining the Customs Union (CU). This was announced by Sergei Glazyev Executive Secretary of the Customs Union of Russia, Belarus and Kazakhstan at the conference 'Joining of Kyrgyzstan to CU: Benefits and Risks"' held in Bishkek on Wednesday, writes KyrTAG.
"The export potential of Kyrgyzstan after joining the CU will reach 20-25 per cent over two years. This is a short-term outlook," Mr Glazyev said. He added that export growth will be possible due to the supply of agricultural products and the clothing industry.
"Kyrgyzstan has all the conditions to create such agricultural products with export potential helped by its climatic conditions and human potential," Mr Glazyev said.
The first Vice Prime Minister of Kyrgyzstan Omurbek Babanov said that the accession of Kyrgyzstan to the CU will not cause social unrest in the country.
"There are no prerequisites for social unrest. The social explosion could be more likely in the case of non-entry of Kyrgyzstan in CU," Mr Babanov said.
"In this case, the Kyrgyz Republic will apply export duty on petroleum products and the price of a litre of gasoline could reach 70 som. Then there will be a chain reaction when food prices go up," Mr Babanov said.
A single customs code has been operating in Russia, Belarus and Kazakhstan since June 1, 2010 according to the agreement signed in 2007. Work on creating a single customs zone is underway.