English / ქართული / русский /
Zhanara Seriyeva Lyazipa Medukhanova
THE TRADE AND ECONOMIC RELATIONS BETWEEN KAZAKHSTAN AND KYRGYZSTAN: CURRENT STATE AND PROBLEMS

Summary 

In this article, we will consider the trade and economic relations between Kazakhstan and Kyrgyzstan between these Central Asian countries. A reliable Foundation for the formation, development and strengthening of relations between the republics of Kazakhstan and Kyrgyzstan is the geographical proximity of the two countries, deep historical roots, common language, culture and traditions. Therefore, the development of cooperation with the Kyrgyz state remains one of the tasks of Kazakhstan's foreign policy. Establishing good-neighborly and stable relations with the neighboring Kyrgyz country is one of the important factors in ensuring the national security of the two countries.

The purpose of the article is to study the current state and development of trade and economic problems in Kazakhstan and Kyrgyzstan. To achieve this goal, we used such methods of analytical and statistical research as analysis of foreign and domestic publications on the topic under study, statistical data describing the economy and foreign trade of Central Asian countries.

Kazakhstan is Kyrgyzstan's second-largest export market after Switzerland (where Kyrgyzstan exports its gold), and money from Kazakhstan has traditionally played an important role in Kyrgyzstan's economy. There have been various disagreements between Kazakhstan and Kyrgyzstan until today. The differences are political, economic, and borderline. But since these are neighboring States, any differences are resolved by the leadership. In recent years, several meetings have been held to strengthen relations between Kazakhstan and Kyrgyzstan.

Let's analyze trade relations between Kazakhstan and Kyrgyzstan, which is the second largest country in Central Asia after Uzbekistan. The indicators show that trade relations with Kyrgyzstan have been growing over the years. The trade turnover in 2007 was 530,959. 80 million US dollars, exports-355,104. 80 million US dollars, imports-175,855. 00 million US dollars. And in 2018, it looks very good, that is, the trade turnover-865,257. 00 million US dollars, exports-634,866. 50 million US dollars, imports-230,390. 50 million us dollars. Kyrgyzstan, which maintains trade relations with Kazakhstan, is the only country in the Eurasian economic Union among other Central Asian countries. After joining the Eurasian economic Union, there has been a slight decrease in trade between the two countries. For example, in 2014, the trade turnover amounted to $ 1 billion in the index of dollars, in 2015-2 times indicates a decrease. In addition, trade relations between the two countries have not been ignored and the border shopping center "Khorgos", which opened in December 2011 and is gradually gaining momentum between Kazakhstan and China. This shows that the external factor influences the relations between Kazakhstan and Kyrgyzstan. Nevertheless, the statistics of 2018 show that the trade turnover is growing again.

The Covid-19 virus did not bypass the Central Asian countries, which were forced to introduce quarantine measures, which led to a decrease in activity or suspension of activities of a large number of enterprises and negatively affected the indicators of regional trade and economic cooperation. Economic relations between Kazakhstan and Kyrgyzstan are negatively affected. Many enterprises had to stop their business, close the borders, and slightly suspend trade between the two countries. Currently, two of the country in the first place, proceed to the regulation of its domestic economy. One of the ways out of this situation is to develop new strategies, policies, and projects in order for the economy to move forward. The global situation allows the Central Asian countries to take new steps to establish economic ties with each other. At the same time, the proximity of Central Asian countries to each other also gives them advantages in saving on transport costs. In addition, the joint creation of international transport corridors and international transport infrastructure in the region will also help reduce transport costs for the supply of export products of the region's countries to foreign markets.

In conclusion, we see that trade and economic relations between Kazakhstan and Kyrgyzstan are influenced by both internal and external factors. These countries can be partners, not competitors to each other.

-   In the future, we offer the following suggestions:

-   Removal of customs barriers or the creation of benefits between the two countries;

-   Improving the functions of state institutions in providing services, providing enterprises with favorable conditions for the development of the external market, improving legislation on commodity movement;

- The need for participation of non-governmental organizations and enterprises;

- Interaction, joint efforts to combat all types of commercial fraud and illegal activities, providing effective and convenient services for trade entities to enter the market of the other party;

- Improvement of trade and economic legislation, creation of border shopping centers as «Khorgos»;

- Creation of mutual economic projects.