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Kyrgyzstan, commodities market and WTO

Posted by Asel | in Economics | on March 2nd, 2008
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Kyrgyzstan became a member of World Trade Organization in December 1998, almost ten years ago, and since then the country did not get any visible benefits from it. Moreover, WTO membership can negatively impact the economic situation in Kyrgyzstan. Neighbor country, Kazakhstan, had decided to impose export tariffs for grain, which caused the substantial price increase on world markets. Also Kazakhstan prohibited the export of sunflower and vegetable oil and since Kyrgyzstan imports most of these commodities, this will lead to price increase for most commodities.

However, as a member of WTO, Kyrgyzstan can not impose tariffs and prohibitions to protect its internal market, says former minister of agriculture Jumakadyr Akeneev to Bishkek Press Club. If Russia undertakes such measures then the prices will increase further, continues Akeneev.

For many years Kyrgyzstan has been receiving financial and technical aid from western countries to develop its economy, including the agriculture. As for WTO in particular, top world consulting company, Booz, Allen, and Hamilton, was invited to help the government of Kyrgyzstan to join this organization. It seems that most of aid, in form of technical assistance, loans, and grants were in vain. Perhaps, it will benefit in long term, sometime in far future, but now Kyrgyzstan is not quite ready to be a real member of WTO.

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