This week the head of the Kazakh government Bakytzhan Sagintayev received a delegation from Kyrgyzstan, which arrived in Astana, headed by the Prime Minister of this country, Sapar Isakov.

 Issues of concern related to customs and tax administration, taking into account the norms and rules of the EAEU and the WTO, as well as issues related to cross-border and veterinary cooperation were considered.

In an interview with MIA Kazinform, Dana Zhunusova, Deputy Chairman of the Board of NCE RK “Atameken”, talked about the interaction of our countries within the framework of EAEU, and also called on Kyrgyz entrepreneurs to strengthen the work to meet the requirements of the Union.

- Dana Beysenovna, to what extent are the requirements and norms of EAEU are fulfilled at the Kazakh-Kyrgyz border? Are there any violations? Are there any questions for your Kyrgyz colleagues?

- An indispensable requirement of any free commodity market is the fulfillment of the obligations assumed, with the same responsibility. Otherwise, this market will be a threat to the rest of the participants. It should be understood that these are not just formal requirements, they are tools for protecting people's life and health. Naturally, within the framework of the Eurasian Economic Union, there are requirements for safety and conformity of products in the spheres of technical regulation and agro-industrial complex. In addition, taking into account the obligations of certain EAEU member states within the WTO, there are arrangements to prevent the movement of goods imported by a member of the Union under a duty other than the Common Customs Tariff (CCT).

More than favorable conditions were presented to our colleagues - Kyrgyz entrepreneurs upon joining the EAEU. We all understood that Kazakhstani business already has experience of working under new rules within the framework of economic integration association, and Kyrgyzstan has a huge preparatory work ahead.

Unfortunately, in due course complaints of the Kazakhstani businessmen on the flow of the contraband Chinese goods through our border, imported from territory of the Kyrgyz Republic, have begun. Basically, these are light industry goods that are imported illegally, without the necessary documents, certificates of conformity. There is a fear of uncontrolled import of goods imported into the territory of Kyrgyzstan at rates below the CCT of the EAEU, due to the lack of a mechanism for monitoring the payment of customs

At the same time, Kazakhstani obligations within the WTO and the EAEU are much tougher. Domestic entrepreneurs are forced to fully monitor the movement of imported goods at WTO rates and ensure that it is not allowed to be exported to other countries of the Union, because there is no possibility of paying a fee.

Over the past two years, our colleagues from Kyrgyzstan have not complied with the requirements of the unified technical regulations of the Union. This led to the fact that unscrupulous market participants, using the gaps in the legislation, released unsafe, low-quality products to the market of Kazakhstan and the countries of the Union, which in turn is a direct threat to Kazakhstan's national security. And it harms our entrepreneurs, puts domestic business in unequal competitive conditions, and also places significant risk on consumers purchasing such products.

- That is, domestic business suffers?

- Of course, the competitiveness of our business suffers. After all, Kazakh entrepreneurs are trying to comply with the requirements and norms of the EAEU. Business itself invests funds to modernize production and ensure compliance of products with the requirements of the technical regulations of the EAEU. These are certification, testing, etc.

Government agencies are making efforts to create an infrastructure that allows businesses to produce safe products. But when, on the one hand, this is done, and contraband products are received from the neighboring state, there are no certificates of conformity, then there is not only a threat to the consumer, but also the possibility of unfair competition within the framework of the EAEU. There must be mandatory compliance with the technical regulations of the EAEU, otherwise such a situation as a whole discredits the system of technical regulation and conformity assessment of the integration association.

- What measures are needed today to correct this situation?

- In order to protect domestic entrepreneurs from low-quality products and, as a result, unfair competition, NCE RK "Atameken" has repeatedly requested the Government of the RK to ensure the establishment of control points on the Kazakh-Kyrgyz section of the border. The proposal of Kazakhstan's business was dictated by the need to create competitive conditions for entrepreneurs by limiting the illegal importation of goods into the territory of the Republic of Kazakhstan, including those that do not meet safety requirements, strengthening control over compliance with the requirements of technical regulations and standards, and suppression of illegal cabotage. Let me remind you that preliminary notification points have been established on the Russian-Kazakh and Russian-Belarusian borders with respect to controlled agricultural products. And it is right.

We are sympathetic to the Russian requirements regarding the quality of products and the need for a full statistical accounting. They protect both their consumer and their entrepreneurs. Kazakhstan also needs to create conditions for the domestic business of competitive conditions by limiting the illegal importation of goods into the territory of the Republic of Kazakhstan, including those that do not meet the requirements of security, strengthening control over compliance with the requirements of technical regulations and standards of the EAEU, and suppression of illegal cabotage.

- Are there any barriers for our entrepreneurs in the market of Kyrgyzstan?

 - Indeed, the Kyrgyz Republic allows various kinds of restrictions with respect to Kazakhstan entrepreneurs in admission to the domestic market. It is a matter of establishing a minimum level of control prices for a number of goods, as a result of which domestic producers of cement suffered, quantitative restrictions on importation of petroleum products, flour, VAT exemptions for milling enterprises, establishment of the procedure for passing state control, on the basis of a coupon and appropriate notice to the tax authority on moving goods and so on.

- How to strengthen the work on observance of technical regulations within the framework of the EAEU today?

- In the agreement on EAEU there is the 29th article, which provides for the right of the member states of the Union to apply restrictions to ensure the country's security and in the performance of international obligations. Therefore, today, when non-compliance with technical regulations breaks down conscientious competition and threatens the domestic market, we at NCE "Atameken" fully support state measures aimed at ensuring safety and compliance with the established requirements of products entering the Kazakhstan market. We hope and urge Kyrgyz entrepreneurs to step up work to ensure that products meet the requirements of the EAEU. The most comfortable environment for business is fair competition and accounting for the balance of the parties. These are the goals we pursued, creating the EAEU. The National Chamber of Entrepreneurs of the Republic of Kazakhstan "Atameken", guided by good neighborly relations between the fraternal peoples of Kazakhstan and Kyrgyzstan, firstly calls on Kyrgyz businesses to take an objective, measured approach to solving emerging bilateral issues, without exacerbating the situation and giving it a political color.

 - Thanks for the interview!