Kyrgyzstan and Turkmenistan have great potential for development of bilateral cooperation in trade, economic and cultural spheres, said Deputy Prime Minister of Kyrgyzstan Valery Dill at Kyrgyz-Turkmen business forum held on August 4 in Bishkek.

In the first four months of 2015, bilateral trade increased by over 30% on-year and amounted to $3.3 million. However, this figure could be considerably higher. The forum aimed at expanding trade and economic relations between the two countries.

The Turkmen delegation included the heads of the State Commodity and Raw Materials Agency, Turkmenexport State Enterprise, pharmaceutical, cotton, oil refining, energy and railway companies, and manufacturers of building materials, food products, textiles, yarn, plastics and confectionery. More than 100 Kyrgyz entrepreneurs have expressed interest in cooperation with Turkmen partners.

Turkmen entrepreneurs are visiting Kyrgyzstan within the official visit of Turkmen President Gurbanguly Berdymukhammedov who has arrived in Kyrgyzstan today.

According to the Ministry of Economy of Kyrgyzstan, Turkmenistan accounts for 0.2% of Kyrgyzstan’s foreign trade. From 2010 to 2014, the trade between the two countries grew 69%. Last year, the trade was $9.8 million, 46.3% more than in 2013.

Kyrgyzstan exports electric incandescent bulbs, automobile radiators, beans, and aviation kerosene to Turkmenistan. Turkmenistan supplies Kyrgyzstan with nuts, cotton seed oil, raw hides, and finished textile products.

Minister of Economy of Kyrgyzstan Oleg Pankratov told about prospects of cooperation with Turkmenistan. Both Turkmenistan and Kyrgyzstan have developed the garment industry and can trade materials and fabrics.

The two countries are actively developing tourism. There is Issyk-Kul Lake in Kyrgyzstan and Avaza resort area with unique infrastructure in Turkmenistan. "We could share experience and implement joint programs," said Pankratov.

The energy sector is also an important sphere for cooperation. Kyrgyzstan’s energy potential is 142 billion kilowatt-hours, but the country uses about 10% of it.

Deputy Director of the Investment Promotion Agency under the Economy Ministry of Kyrgyzstan, Nurbek Maksutov, told about new conditions for entrepreneurs within the Eurasian Economic Union (EEU).

Kazakh President Nursultan Nazarbayev has ratified the Treaty on the Accession of Kyrgyzstan to the EEU. Thus, Kazakhstan has become the last EEU member country to ratify the treaty.

Within a month after the treaty ratification, Kyrgyzstan will become a full EEU member, said Maksutov. The borders with Russia, Kazakhstan, Belarus and Armenia will be opened. If Turkmen entrepreneurs want to invest in Kyrgyzstan, then changes to Kyrgyz legislation related to the joining of the EEU will not be applied to them within ten years. Foreign investors can freely transfer profit from their investments to their home country and can exchange Kyrgyz soms for other currencies.

In Kyrgyzstan, the subjects of free economic zones are exempt from taxes and customs duties, but 10% of the products must be exported.

Kyrgyzstan has advantages in production costs, as the country has the lowest taxes compared to Kazakhstan, Russia, Uzbekistan and China, as well as cheap labor force and electricity. The average salary in Kyrgyzstan is threefold less than in Kazakhstan and fourfold less than in Russia.

It is necessary to pass two procedures to register a legal entity, and it will take eight days. To open a construction company, 12 procedures will take 142 days, and it is much less than in other EEU countries.

Kyrgyzstan has traditionally been involved in animal husbandry because the pastures occupy more than 10 million hectares. The country has adopted halal standards and local entrepreneurs are exporting meat to Iran and Afghanistan, and are planning to export it to Turkmenistan.

Kyrgyzstan has a high export potential of dairy products. Turkmenistan currently imports dairy products mainly from Russia. Kyrgyz entrepreneurs offered Turkmenistan to expand the geography of imports including Kyrgyzstan.

As a result of the forum, the chambers of commerce of the two countries signed a memorandum of cooperation. It is also planned to establish a Turkmen-Kyrgyz Business Council aimed at the exchange of experience and business information in order to attract investments in strategic projects.