Contract on creation of the Common economic space between the Republic of Kazakhstan, Kyrgyz Republic and Republic of Uzbekistan

of April 30, 1994

The Republic of Kazakhstan, the Kyrgyz Republic and the Republic of Uzbekistan, the hereinafter referred to as High contracting parties,

being guided by bilateral agreements about friendship, cooperation and mutual aid,

assuming as a basis the Contract between the Republic of Kazakhstan and the Republic of Uzbekistan on creation of the Common economic space signed on January 10, 1994 and the Decision on accession of the Kyrgyz Republic to the specified Agreement signed on January 16, 1994

based on historical community of the people and wishing to develop and deepen comprehensive good-neighbourhood,

considering need of coordination of collateral actions for carrying out economic reforms, development of the market relations and forming of effective mutually advantageous commercial ties,

aiming to create favorable conditions for implementation of joint Programs for development and deepening of integration of economies of the Kyrgyz Republic, the Republic of Kazakhstan and the Republic of Uzbekistan for 1994-2000,

understanding objective need of forming and development of the Common Economic Space based on free movement of goods, services, the capitals and labor power, consolidation of direct connections of business entities

recognizing important role of interstate economic cooperation in stabilization of the national economy, more effective use of the rich natural, mineral raw material resources of the republics, and also need of taking measures to realization of provisions of the Agreement on creation of Commonwealths of Independent States Economic Union,

agreed about creation of the Common economic space between the Kyrgyz Republic, the Republic of Kazakhstan and the Republic of Uzbekistan.

Article 1.

The common economic space between the Kyrgyz Republic, the Republic of Kazakhstan and the Republic of Uzbekistan is created for the purpose of implementation of joint Programs for deepening of economic integration between the Kyrgyz Republic, the Republic of Kazakhstan and the Republic of Uzbekistan for 1994-2000, assumes free movement of goods, services, the capitals, labor power and provides the approved credit and accounting, budget, tax, price, customs and monetarist policies.

Article 2.

High contracting parties build the relations as the friendly states, being guided by the principles of equality and non-interference to internal affairs of each other, fair accomplishment of cross liabilities, and also other universally recognized norms of international law.

Article 3.

High contracting parties when forming the Common economic space:

will create necessary legal, economic and organizational conditions for free movement of the capitals and labor power;

will pursue the coordinated policy in the field of development of transport and communications directed to implementation of effective transportation of goods and passengers;

will create conditions for fair competition, including the mechanism of anti-monopoly regulation;

will apply the free (contractual) prices in mutual trade developing taking into account integration of the domestic markets and will not allow unilateral actions for restriction of access of goods (services on the markets;

will provide development of direct commercial ties between business entities and will create favorable conditions for strengthening of production cooperation;

creation of joint businesses, production associations will be assisted in priority industries, by networks commercial and financial credit institutes and the organizations;

will provide equal economic conditions for mutual investment of the capitals, coordination of investment policy, including attraction of foreign investments and credits to the spheres of economy which are of mutual interest and will create the efficient mechanism of protection of the rights and interests of investors.

Article 4.

High contracting parties for the purpose of creation of conditions for free trade recognized necessary:

cancellation of customs duties and consecutive decrease in taxes, charges and other restrictions;

simplification of customs procedures;

harmonization of the customs legislation, unification of forms of documentation for maintaining customs statistics;

step-by-step rapprochement of rates for transportation of goods and passengers in case of observance of liberty principle of transit and mechanisms of tariff and non-tariff regulation;

cancellation of customs examination of baggage and hand luggage of citizens of the Kyrgyz Republic, the Republic of Kazakhstan and the Republic of Uzbekistan in case of their movement through customs border of High contracting parties, except as specified, when good reasons to believe are had that are taken weapon, narcotic and psychotropic drugs, currency and cultural values.

Article 5.

For ensuring effective functioning of the Common economic space High contracting parties use existing and will create new coordinating and executive bodies, procedure for forming and which financings it is performed by free intergovernmental agreements.

Article 6.

Forming of the currency and cash system which is based on use of national currencies will be carried out step by step and is based on the principles:

mutual recognition of national currencies and their official quotations;

achievements of mutual convertibility of national currencies on current transactions;

implementation of payments in national currencies through interstate joint, national and authorized commercial banks.

Article 7.

Article 8.

High contracting parties will carry out consecutive harmonization of the taxation systems, legislative provisions on procedure for collection of taxes and application of rates of taxes on the basis of unity of methodology of the cost accounting on production.

Article 9.

High contracting parties do not allow discrimination of citizens of the Parties on national or any other sign in questions of provision of workplaces, compensations, mutually recognize education documents and qualifications of workers without their additional confirmation if it is not required by conditions or kind of work, and provide visa-free regime of movement of their citizens within the territory of the Common economic space.

Article 10.

The economic relations between High contracting parties and their business entities are regulated by provisions of the Agreement on creation of Commonwealths of Independent States Economic Union, this agreement and free bilateral agreements, rules of international law and national legal systems of the Parties.

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