Joint Statement on U.S.-Kyrgyz Republic Economic Consultations

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“The second economic consultations between the United States and the Kyrgyz Republic took place in Washington, DC, November 18-20. Vice Prime Minister Djoomart Otorbaev led the Kyrgyz delegation that included Minister of Foreign Trade and Industry Sadriddin Djienbekov, Vice Chairman of the National Bank Shamshybek Moldokanov, Deputy Minister of Foreign Affairs Talant Kushchubekov, and Ambassador Baktybek Abdrisaev.

The candor and good will of the detailed consultations reflected the increasing closeness of the two countries and their common commitment to strengthening their long-term cooperation and strategic partnership. Both sides reaffirmed the specific areas of economic cooperation that were designated in the Joint Statement of President George Bush and President Askar Akayev on September 23, 2002, and in the Memorandum of Understanding between the Government of the Kyrgyz Republic and the Government of the United States on the Further Development of Bilateral Cooperation and on Support for Economic Reforms in the Kyrgyz Republic of February 15, 2002.

The agenda of the plenary sessions included review of the Kyrgyz Republic’s fundamental policy goal, reduction of poverty through economic growth, social development, and good governance. The Kyrgyz delegation identified macroeconomic and fiscal policy as a key element of that strategy, including the implementation of the International Monetary Fund program in the Kyrgyz Republic, as well as the Government of the Kyrgyz Republic’s program to promote growth through increased trade, investment and exports. In reviewing the trade and investment climate in the Kyrgyz Republic, both sides reviewed the concept of a regional trade and investment framework agreement and the development of bilateral trade and investment programs and missions. They also reviewed the work of President Akayev’s Investment Council. The U.S. delegation affirmed the importance of resolving investment disputes that could serve as a deterrent to increased investment inflows.

During the plenary discussions, which also included the Department of the Treasury, the U.S. Agency for International Development, the U.S. Trade Representative, and the U.S. Trade and Development Agency, both sides reviewed U.S. assistance to improve the efficiency of public health services, to promote agribusiness in Osh Oblast, to develop small and medium enterprises, to provide microcredits, and to continue tax, land, and banking-sector reforms. They also discussed the possibility of U.S. participation in the implementation of the Kyrgyz Republic’s World Bank strategic economic programs, including the National Strategy on Poverty Reduction and the Comprehensive Development Framework.

Both sides expressed their commitment to participate in the reconstruction of Afghanistan and the development of its natural and human resources, as well as the importance of liberalization of trade, tariff, and border-control regimes in Central Asia. They also reaffirmed the importance of close consultation to determine the priorities for further U.S. assistance to the Kyrgyz Republic.