Trade and Economic Cooperation

Kyrgyz-German relations

The legal basis for the relations is formed by the Joint Statement on the Fundamentals of Relations between the Kyrgyz Republic and the Federal

Republic of Germany of July 4, 1992 and the Document on the Establishment of Diplomatic Relations between the Republic of Kyrgyzstan and the Federal Republic of Germany of February 3, 1992.

Kyrgyzstan regards Germany as one of the most important partners in Europe. Bilateral relations have a solid foundation of traditionally strong and friendly partnerships.

The visit of the German Federal Chancellor Angela Merkel to Kyrgyzstan in July 2016 was of great and fundamental importance in the history of bilateral relations.

Germany is the initiator of the "European Union Strategy for Central Asia", adopted in 2007 during the German Presidency in the EU. Kyrgyzstan attaches great importance to cooperation within the framework of this strategy under the program "Water Initiative for Central Asia" ("The Berlin Process"), which is aimed at developing interaction and partnership between the countries of Central Asia.

Mutual visits and regular bilateral contacts on the governmental, departmental and inter-parliamentary levels are the evidence of mutual interest and close cooperation.

The active interaction in the political sphere of Kyrgyzstan with Germany largely predetermines the successful implementation of financial and technical cooperation with the Federal Ministry for Economic Cooperation and Development of Germany.

Kyrgyzstan is interested in successful economic cooperation with Germany, which is one of the most economically developed country in Europe and the world. Perspective areas of cooperation are agriculture, energy, tourism, etc.

At the present stage Kyrgyzstan is interested in cooperation with Germany and Europe on the basis of the GSP + status of granted by the European Union to Kyrgyzstan, according to which the products produced in Kyrgyzstan can enter the EU market with the preferential conditions.

An important incentive for rapprochement between the two countries is the existence of historical ties with ethnic Germans. Spiritual and cultural ties between peoples form an integral part of our relations. The presence of ethnic Germans in Kyrgyzstan, which have become the basis for our relations, form a bridge of cooperation in this sphere.

Cooperation in the cultural and humanitarian sphere occupies a central place in the structure of our bilateral relations. This type of cooperation includes various activities, including concerts, exhibitions, active interuniversity partnership, academic and educational exchanges.

The contractual and legal base of Kyrgyzstan with Germany is the most extensive among all the EU countries and covers practically all areas of cooperation.

Germany is one of the leading economic partners of Kyrgyzstan in the European Union. . At the same time Kyrgyzstan occupied 147th position in the list of trade partners of Germany in 2017.

The basis of trade and economic cooperation between our countries is the Treaty on the Promotion of the Implementation and Mutual Protection of Investments (dated August 28, 1997, Bishkek) and the Agreement on the avoidance of double taxation and the prevention of tax evasion with respect to taxes on income and property (dated December 1, 2005, Bishkek).

The perpective spheres of cooperation are agriculture, energy, tourism, etc. The trade turnover between the Kyrgyz Republic and the Federal Republic of Germany is still not significant but has a certain potential for increasing it through the development of the agrarian potential of Kyrgyzstan. At the same time, imports to Kyrgyzstan from Germany exceed exports from Kyrgyzstan by 4 times, which means that there is a negative trade balance for Kyrgyzstan in the foreign trade balance with Germany.

The following categories of goods are mainly imported to Kyrgyzstan - oil and their distillation products, pharmaceutical products, perfumes and cosmetics, optical instruments, electrical machines and means of land transportation. Tobacco, copper and copper products, land transportation, various food products, etc. are exported.

Kyrgyzstan is interested as well in cooperation with Germany and Europe on the basis of the status “VSP +” granted to Kyrgyzstan by the European Union, according to which products with the “Made in Kyrgyzstan” brand have good chances to enter the EU market.