THE KYRGYZ REPUBLIC AND THE EU’s GSP

Economic Impact

The Kyrgyz economy can be considered vulnerable and is, with a vulnerability score of 0% noticeably below the threshold of 7.4%. In addition, Kyrgyzstan's economy is mostly concentrated on a small bandwidth of products. The country's diversification percentage stood at 84.8% in 2019 with the minimum diversification threshold standing at 75%.

The preference utilisation rate of the Kyrgyz Republic fluctuated considerably over the regarded period, particularly between 2013 and 2017. Since then, the rate has been rather stable with an average of about 62%. The transition of the Kyrgyz Republic to GSP+ status in January 2016 had a notable impact. The preference utilisation rate increased by 7 percentage points between 2016 and 2018. Likewise, total imports from Kyrgyzstan increased ninefold since the transition to €630 million in 2018. However, only a fraction of these were imported under GSP+ reduced duties as most imports already benefited from MFN zero tariffs. The largest product group imported using GSP+ preferences are fruits, nuts, and vegetables (02b). The preference utilisation rate of this section increased by 27% between 2020 and 2022 and currently stands at 81.5%.

The largest product sections under the GSP+

SUSTAINABLE DEVELOPMENT AND MONITORING PRIORITIES

The Kyrgyz Republic ratified 27 core conventions on human rights, labour rights, environmental protection, and good governance. The Kyrgyz Republic maintained ratification of all international conventions included in the GSP regulation and stepped up its engagement with different UN mechanisms. Likewise, the Kyrgyz Republic demonstrated commitment by sending all outstanding reports on the implementation of ILO and UN conventions. The reporting situation related to environmental conventions remains difficult. Several reports are overdue, including reports on the Illicit Trade Convention and the Framework Convention on Climate Change.

Monitoring priorities during the reporting period 2018-2019

For the reporting period 2018-2019, the EU has focussed its monitoring activities on six priority areas and cooperated closely with the government, local NGO's, and trade unions. The overall situation with regards to human rights and good governance improved due to the introduction of relevant legislations. Challenges remain with the effective implementation as well as the reporting on some conventions.

1. HUMAN RIGHTS

The Kyrgyz Republic has maintained ratification of all core UN human rights conventions and has additionally ratified the UN conventions on the rights of migrant workers and people with disabilities, which are not covered under the GSP+ regulation. Kyrgyzstan made notable progress in the area of human rights particularly through the strengthening of the legal framework. The government introduced a number of policies including a Human Rights Action Plan 2019-2021, a plan on the implementation of the recommendations by the monitoring body of the Convention on the Elimination of Racial Discrimination (CERD) as well as plan to implement the provisions under the UN Convention on Rights of People with Disabilities. Kyrgyzstan still faces challenges in addressing under-age and forced marriage, where existing regulations do not seem to be sufficient. In addition, there has been no progress on drafting an anti-discrimination law. With regards to the prevention of torture, the responsible agency (the Centre for Prevention of Torture) remains institutionally weak and is not well-known among local stakeholders which impedes the effective work of the institution. Another challenge is the improvement of the situation of minorities. Reports suggest that minorities, including religious minorities as well as members of the LGBTQI community, over-proportionally face discrimination, harassment, and mistreatment by law enforcement.

Ratified

• Convention on the Prevention and Punishment of the Crime of Genocide (1948)
• International Convention on the Elimination of All Forms of Racial Discrimination (1969)
• International Covenant on Civil and Political Rights (1976)
• International Covenant on Economic, Social and Cultural Rights (1976)
• Convention on the Elimination of All Forms of Discrimination against Women (1981)
• Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
• Convention on the Rights of the Child (1990)

2. LABOUR RIGHTS

The Kyrgyz Republic has ratified all ILO labour rights conventions covered under the GSP+ regulation. In addition, the country has ratified three of the four ILO priority conventions, namely the Labour Inspection Convention, the Tripartite Consultation Convention, and the Employment Policy Convention. Over the reporting period 2018-2019 most of the concerns related to the effective implementation of the conventions, adequate and timely reporting, and Kyrgyzstan's weak legal framework. A new Labour Code is still under development which currently leads to restrictions to labour inspections. Progress has been made in addressing child labour, however, strong regulations could further improve the effective sanctioning of violations. Similarly, existing laws on women's economic participation are ineffective in addressing sexual harassment and workplace discrimination. Another area of concern is the draft Trade Union law, which poses a serious threat to the independence of trade unions and would contradict the provisions of the ILO conventions on freedom of association and collective bargaining.

Ratified

• Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87) 
• Right to Organise and Collective Bargaining Convention, 1949 (No. 98) 
•  Forced Labour Convention, 1930 (No. 29)  (and its 2014 Protocol )
• Abolition of Forced Labour Convention, 1957 (No. 105) 
• Minimum Age Convention, 1973 (No. 138) 
• Worst Forms of Child Labour Convention, 1999 (No. 182) 
• Equal Remuneration Convention, 1951 (No. 100) 
• Discrimination (Employment and Occupation) Convention, 1958 (No. 111) 

3. ENVIRONMENTAL PROTECTION

Environmental protection is of importance to the Kyrgyz' government given the country's vulnerability to the impact of climate change. Overall, there has been positive progress on the Kyrgyz' commitment to international conventions. The government currently revises the national legislation to tackle illegal wildlife trade more effectively, put forward national plans for the conservation of biological diversity, as well as a national strategy for sustainable development. Furthermore, a law on biosafety has been drafted. Difficulties persist for the disposal of persistent organic pollutants and medical waste, which will need to be addressed in future regulations.

Ratified

• Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
• Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
• Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal (1989)
• Convention on Biological Diversity (1992)
• United Nations Framework Convention on Climate Change (1992)
• Cartagena Protocol on Biosafety (2000)
• Stockholm Convention on persistent Organic Pollutants (2001)
• Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)

4. GOOD GOVERNANCE

Addressing corruption remains a central challenge for the Kyrgyz Republic which has been acknowledged by the government. A number of new legal initiatives better protect whistleblowers, provide clearer guidelines on conflict of interest and increase the transparency of the criminal justice system. Further steps, like an institution that coordinates all anti-corruption measures, still need to be taken. Kyrgyzstan remains a transit country for international drug traffickers, particularly from Afghanistan. The overall number of drug offenses decreased over the reporting period and law enforcement was able to increase their confiscations which reflects the overall effectivity of the measures.

Ratified

• United Nations Single Convention on Narcotic Drugs (1961)
• United Nations Convention on Psychotropic Substances (1971)
• United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
• United Nations Convention against Corruption