Q&A: Enhanced Partnership and Cooperation Agreement between EU and Kyrgyzstan

What is an Enhanced Partnership and Cooperation Agreement (EPCA)?

An EPCA is a non-preferential agreement (which includes customs, duties and provisions), that provides a framework to strengthen bilateral relations between the EU and its partners in Central Asia. It promotes mutual trade and investment, business regulations, economic and financial cooperation, and cooperation in areas such as energy, transport, environment and climate change, education and human rights.

What are the benefits of an EPCA to the Kyrgyz Republic?

The signature of the EPCA represents an important milestone in over 30 years of EU-Kyrgyzstan relations and demonstrates our commitment to strengthening our bilateral relations. The EPCA replacesthe existing Partnership and Cooperation Agreement (PCA) between the EU and the Kyrgyz Republic.

The EPCA will allow the EU and the Kyrgyz Republic to strengthen and deepen political dialogue and cooperation in key sectors, including trade and investment, climate change and green transition, sustainable connectivity, digitalisation, energy, agriculture and rural development, employment and social affairs, culture, education, research and development as well as people-to-people contacts. It will also enable strengthened cooperation on human rights and civil society.

In addition, the EPCA will offer the possibility to exchange on potential new areas of cooperation, including raw materials and critical raw materials essential for green and digital transition.

How will the citizens of the Kyrgyz Republic benefit from the signing of this EPCA?

The implementation of the EPCA aims to strengthen trade and investment and improve the business climate in the Kyrgyz Republic, including through the diversification of the economy. A stronger economy is a more prosperous and resilient one which benefits citizens.

The EPCA will also strengthen cooperation in education and research and innovation.

The EU is already allocating EUR 76 million (2021-2027) for the Erasmus+ programme in Central Asia.It offers opportunities for Kyrgyzstan's University students and staffto participate in projects for higher education mobility and cooperation. Since 2015, 170 projects from Central Asia have been selected, 30 of which were coordinated by or involving the Kyrgyz Republic. The EU also funds scholarships for students from Kyrgyzstan to take part in Erasmus Mundus joint master's degree programmes.

The Horizon Europe Framework Programme for Research & Innovation is already open for the participation of international partners. Kyrgyz researchers and research entities can receive funding on the same basis as entities from the EU Member States for their participation in projects selected for funding. To date, the Kyrgyz Republic has six signed grants in Horizon Europe (total EU funding contribution of Euro 389 000). In the future, the EU and the Kyrgyz Republic will work to achieve higher rates of participation.

How will the EPCA benefit trade and economic relations between the EU and the Kyrgyz Republic?

The implementation of the EPCA will contribute to stronger bilateral trade relations and greater diversification of Kyrgyz exports to the EU.

The EPCA ensures a better regulatory environment for businesses, in areas such as trade in goods and services, government procurement or intellectual property rights. The Agreement also aims at promoting fair and open competition that benefits Kyrgyz consumers, and small and medium-sized companies.

There are several provisions on labour rights and decent work and on environmental and climate protection, to promote sustainable economic growth through trade, benefiting EU and Kyrgyz society as a whole.

The EU exports to the Kyrgyz Republic increased significantly in 2023 (+115.7%). The trade and economic relations aspects of the EPCA are complementary with the market access and sustainability commitments offered to Kyrgyzstan by the EU's Generalised Scheme of Preferences (GSP) and Special Incentive Arrangement for Sustainable Development.

The GSP+ extends the standard GSP duty free or duty reduction to further products exported by the Kyrgyz Republic to the EU and fully removes tariffs for two-thirds of products. In the context of GSP+, Kyrgyzstan has committed to the effective implementation, in law and in practice, of 27 international conventions on human and labour rights, environment and climate, and good governance.

The EU and the Kyrgyz Republic will continue close cooperation on preventing the circumvention of sanctions.

Does the EPCA support the protection and promotion of human rights?

The promotion and protection of human rights and fundamental freedoms remain key priorities in our bilateral cooperation with Kyrgyzstan, and are an integral part of the EU's GSP+ and EPCA.

Through the signing of the EPCA, the EU and the Kyrgyz Republic reaffirm their commitment to strengthen respect for democratic principles, the rule of law and good governance, human rights, fundamental freedoms and the principle of non-discrimination, and to increase cooperation in these areas.

The EPCA also stipulates that the EU and the Kyrgyz Republic will cooperate to strengthen civil society and its role in economic, social and political development of an open democratic society.

Moreover, the EU will continue to support civil society in line with its roadmap to engage with civil society in Kyrgyzstan.

What other areas of cooperationwill benefit from the implementation of EPCA?

The implementation of the EPCA with the Kyrgyz Republicwill contribute to enhancing transport connectivity between the Central Asian partners and Europe, such as Trans-Caspian Transport Network.The Kyrgyz Republicplays a crucial role in the diversification of trade and transport routes andin deepening intra-regional cooperation in Central Asia.

The EPCA will enable the EU and the Kyrgyz Republic to maximise the benefits of development cooperation.The Multi-annual Indicative Programme 2021-2027 (EUR 62 million for 2021-2024) focuses on three priority areas; Governance and Digital Transformation; Human Development; and Green and Climate Resilient Economy.

The geography and topography of the Kyrgyz Republic makes it one of the most hazard-prone countries in Central Asia. The EU will continue to support the Kyrgyz Republic in its efforts to reinforce its resilience to challenges caused by climate change.

Areas of cooperation under EPCA also include digitalisation, energy, agriculture and rural development, employment and social affairs, culture, education, research and innovation, as well as people-to-people contacts.