Includes the barriers (tariff and non-tariff) that U.S. companies face when exporting to this country.
Structural barriers to trade in the Kyrgyz Republic include a weak system of business law, a lack of an effective judicial system for breach-of-contract resolution, an unwieldy government bureaucracy, and rampant corruption. The business community has raised concerns about 2021 laws passed that concentrate more power in the Kyrgyz presidency and cabinet of ministers. Many companies serving the market report significant logistical difficulties. In addition, there is a burdensome tax monitoring system for all companies operating in the Kyrgyz Republic, which may affect U.S. firms that decide to operate through a representative office.
Implementation of EAEU customs requirements continues to be non-uniform across the Union and within the Kyrgyz Republic itself. Throughout 2020, there were occasional but significant delays in the movement of transit goods coming from the Kyrgyz Republic through the Republic of Kazakhstan caused by stricter inspections by the Kazakh authorities. Numerous attempts of the Kyrgyz government to resolve the situation bilaterally were unsuccessful, prompting the Kyrgyz Republic to lodge an official complaint against Kazakhstan to the WTO in February 2020. Customs inspectors are unable or unwilling to make informed decisions regarding requirements or clearances. Widespread corruption, extending even to the judicial system, affects nearly all aspects of doing business, including customs clearance, registration, employment of locals and foreigners, and payment of taxes.