On approval of the Agreement between the Republic of Kazakhstan and the Republic of Uzbekistan on Deepening Economic Cooperation for 1998-2005

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Decree of the President of the Republic of Kazakhstan dated March 25, 1999 N 90

In order to further deepen economic integration and create conditions for the development of equal and mutually beneficial cooperation between the Republic of Kazakhstan and the Republic of Uzbekistan

I decree:

1. To approve the Agreement between the Republic of Kazakhstan and the Republic of Uzbekistan on deepening economic cooperation for 1998-2005, signed in Tashkent on October 31, 1998.

2. This Decree comes into force from the date of signing. The President of the Republic of Kazakhstan was approved by Decree of the President of the Republic of Kazakhstan No. 90 dated March 25, 1999. The Agreement between the Republic of Kazakhstan and the Republic of Uzbekistan on deepening economic cooperation for 1998-2005 (Bulletin of International Treaties of the Republic of Kazakhstan, 2001, No. 4, Article 39) (Entered into force on May 31, 2000 - J. "Diplomatic Courier", Special issue No. 2, September 2000, p. 183) The Republic of Kazakhstan and the Republic of Uzbekistan, hereinafter referred to as the Parties, guided by the Treaty of Eternal Friendship between the Republic of Kazakhstan and the Republic of Uzbekistan dated October 31, 1998, the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan on measures to deepen economic integration for 1994-2000 dated July 28, 1993, the Treaty between the Republic of Kazakhstan and the Republic of Uzbekistan on creation of the Single Economic Space on January 10, 1994, The Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan on free trade dated June 2, 1997, as well as other international treaties to which the Parties are parties, recognizing that economic cooperation is primarily aimed at improving the standard of living and meeting the needs of the population of the two states, realizing the advantages of the international division of labor, specialization and production cooperation mutually beneficial trade to achieve the goals of their socio-economic development, Proceeding from the need to further strengthen and develop equal and mutually beneficial trade, economic and industrial relations, giving them a long-term and sustainable character, effectively using the economic potential of the two states and improving the well-being of their peoples, reaffirming the need for mutually beneficial use of the industrial and intellectual potential of their States and striving to further deepen comprehensive cooperation, attaching great importance to the implementation of economic reforms, to create conditions for a phased transition to the free movement of goods, services, capital and labor, guided by generally recognized norms and principles of international law, agreed as follows:

Article 1 The Parties shall implement the Program of Economic Cooperation between the Republic of Kazakhstan and the Republic of Uzbekistan for 1998-2005 (hereinafter referred to as the Program), which is an integral part of this Agreement.

Article 2 Economic cooperation between the Parties is carried out on the principles of long-term partnership and a free trade regime that meets the strategic interests of both States, through interaction between regions, economic entities, regardless of their forms of ownership, in accordance with generally recognized norms of international law and national legislation.

Article 3 The Parties, recognizing the need for mutually beneficial cooperation and the gradual formation and development of a common economic space within the CIS, create favorable conditions for the convergence of the regulatory framework in the field of foreign economic activity, trade and economic relations, tax, customs and tariff system, antimonopoly policy and consumer protection, the formation of individual projects and programs, the provision of to promote the development of mutually beneficial economic, scientific and technical ties between business entities, to enhance the mutual activities of national and foreign investors in the territory of both States. The parties shall refrain from actions detrimental to the interests of each other's economy.

Article 4 The Parties: jointly develop and implement a system of measures to support and protect national commodity producers engaged in joint production; encourage the formation of transnational associations, financial and industrial groups, holdings, and joint ventures for the production of new-generation machinery based on in-depth production cooperation; recognize mutual interest in strengthening mutually beneficial ties between enterprises of basic industries and agriculturalindustrial complexes; encourage the opening of trading houses and representative offices.

Article 5 The Parties shall create favorable conditions for the promotion and mutual protection of investments, support for entrepreneurship in cooperation on the securities market, and the development of exchange trading.

Article 6 The Parties shall ensure cooperation on a mutually beneficial basis in conducting fundamental and applied scientific research within the framework of international projects, including the organization of joint scientific work on issues of common interest.

Article 7 The Parties continue to cooperate in the field of transport and communications, and create favorable conditions for transit through their territories.

Article 8 The Parties instruct their Governments and the Joint Intergovernmental Commission on Bilateral Cooperation between the Republic of Kazakhstan and the Republic of Uzbekistan to coordinate the implementation of the Program, monitor the progress of its implementation and, if necessary, develop proposals for amendments to it.

Article 9 Disagreements arising in the interpretation of the provisions of this Agreement, the Parties will resolve through negotiations and consultations. By mutual agreement of the Parties, amendments and additions may be made to this Agreement, formalized by separate protocols that are an integral part of this Agreement.

Article 10 of this Treaty does not affect the rights and obligations of the Parties arising from other international treaties to which they are parties.

Article 11 This Agreement shall enter into force on the date of the last written notification by the Parties of the completion of the internal procedures necessary for its entry into force and shall be valid until December 31, 2005.

Each of the Parties may terminate this Agreement by notifying the other Party in writing. In this case, this Agreement shall terminate six months after the date of receipt of such notification.The termination of this Agreement does not affect the implementation of projects that entered into force during the period of the Agreement. Done in Tashkent on October 31, 1998, in two originals, each in the Kazakh, Uzbek and Russian languages, all texts being equally authentic. For the purposes of interpreting the provisions of this Agreement, the Parties use the text in Russian. For the Republic of Kazakhstan For the Republic of Uzbekistan The Program of economic cooperation between the Republic of Kazakhstan and the Republic of Uzbekistan for 1998-2005

The Republic of Kazakhstan and the Republic of Uzbekistan are economic partners. The economic interests of both countries are primarily determined by mutual benefit, which determines the need for joint development of coordinated actions for the further development of bilateral economic relations. In an effort to provide favorable conditions for the dynamic and harmonious development of the economy and the implementation of economic reforms in the interests of improving the living standards of the peoples of the States, this Program of Economic Cooperation between the Republic of Kazakhstan and the Republic of Uzbekistan for 1998-2005 (hereinafter referred to as the Program) has been developed.

I. The state and problems of development of Kazakh-Uzbek economic cooperation The radical changes that took place in the economies of the Republic of Kazakhstan and the Republic of Uzbekistan after the declaration of independence by both states, the formation of a market mechanism was accompanied by a weakening of economic and cooperative ties, a significant decline in production volumes and a reduction in mutual trade.

One of the most important areas of economic cooperation between the Republic of Kazakhstan and the Republic of Uzbekistan has been insufficiently used: the creation of joint export-oriented production structures that promote the development of the economy and, as a result, industrial ties based on mutual benefit, more efficient use of the existing specialization of enterprises in the field of fuel and energy complex, mechanical engineering, food and chemical industry, ferrous and non-ferrous metallurgy, mobilization of financial and investment resources. The legal basis for the organization and operation of such structures in the regulatory legal acts of the Republic of Kazakhstan and the Republic of Uzbekistan currently differs significantly, which is a deterrent to their development. To solve the existing problems in the economic relations of the Republic of Kazakhstan and the Republic of Uzbekistan, it is necessary to develop a strategy for mutually beneficial economic cooperation in the implementation of this Program.

II. Goals and objectives of the Program The program was developed with the aim of implementing by the Republic of Kazakhstan and the Republic of Uzbekistan on a long-term basis an agreed set of measures, including regulatory and legal ones, to provide state assistance to the development of mutually beneficial economic, scientific and technical ties between the two countries, to achieve significant progress in industrial cooperation between various sectors of national economies and growth on this basis mutual trade turnover, as well as satisfaction of spiritual and cultural needs, improving the standard of living of the peoples of the Republic of Kazakhstan and the Republic of Uzbekistan.

In the process of implementing the Program, the following tasks will have to be solved: achieving stabilization of production and economic growth; development of equal and mutually beneficial trade, economic and industrial relations; development of interregional cooperation; formation of separate interstate projects and programs of economic cooperation, creation of joint ventures of various forms of ownership, financial and industrial groups, international consortia in priority sectors of the national economic complexes of the participating states, activities of national and foreign investors in the territories of both states; effective use and development of vehicles and communications; creation of conditions for fair competition and development of measures to regulate the activities of natural monopoly entities; cooperation in the development of stock markets; development and implementation of measures to strengthen and develop humanitarian cooperation, interaction in social, cultural and other spheres; implementation of coordinated actions to protect the environment, improve the environmental situation, eliminate the consequences of natural disasters and catastrophes; coordination of actions to strengthen the fight against organizational crime, terrorism, illegal distribution and sale narcotic drugs, psychotropic substances and their precursors.

III. Development of economic cooperation The program outlines the implementation of measures to further develop mutually beneficial processes in the economy, which will contribute to a real increase in the efficiency of the Central Asian Economic Community as a whole. The main areas in which it is proposed to coordinate the actions of the Parties in carrying out economic reforms include: preparation of proposals to create conditions conducive to the mutual participation of economic entities of the Parties in this program.; development and signing of intergovernmental agreements on the implementation of business support policy; development of a system of coordinated tariff policy. The parties will harmonize the regulatory framework, creating equal conditions for the economic entities of both states and, first of all, concerning the principles of collection of customs duties, fees and customs control in the implementation of export-import operations in mutual trade.; creation of international consortia, interstate financial and industrial groups and other joint structures; environmental management and environmental protection conditions.

IV. Coordination of priority areas The program provides for cooperation in the following priority areas: increasing product competitiveness; developing export potential. In order to increase the competitiveness of products produced by enterprises, it is necessary to consider the possibilities of preserving and developing the most valuable elements of the accumulated scientific and technical potential and using it in the interests of developing the economies of both countries, creating priority conditions for their own producers to produce and market products in the markets of the Republic of Uzbekistan and the Republic of Kazakhstan, contributing to the growth of demand for products from enterprises of both countries to protect the common market space from unfair competition. An effective mechanism for carrying out coordinated structural restructuring of the economy of the Republic of Kazakhstan and the Republic of Uzbekistan will be the creation of joint Uzbek-Kazakh transnational structures in priority sectors and industrial complexes, which will create the prerequisites for effective investment and intersectoral capital transfer, the formation and development of rational cooperative ties, accelerating scientific and technological progress, increasing export potential, and implementing progressive structural changes in the economy. An important direction in coordinating priority structural changes in the economy will be to coordinate the activities of scientific, design and engineering-technological organizations in order to effectively use the scientific potentials of the Republic of Kazakhstan and the Republic of Uzbekistan in the field of fundamental, applied research and innovation. The main areas of cooperation in the innovation sphere will be the development of technologies in: biotechnology for agriculture and the production of medicines; mechanical engineering - agricultural machinery, production of special equipment, vehicles, energy, oil and gas and oilfield equipment; metallurgical industry - progressive rolled products, production of pipes of oil and gas grade, ferroalloys and special steels, tungsten-molybdenum products and rare earth metals; chemical and petrochemical industry - production of fertilizers and plant protection products, polymer structural materials, low-tonnage chemical products, chemical filaments and fibers; development of equipment and water-saving technologies for agriculture; development of unconventional energy sources; oil refining and oil and gas industry - organization of replacement of primary refining capacities, introduction of the latest technologies in order to increase the depth of oil refining and improve the quality of petroleum products; processing of agricultural products - development of technologies and equipment for the production of new food products and deep processing of vegetables and fruits. The basis for the practical implementation of a coordinated structural policy is the implementation by both States of both national targeted integrated programs and projects, as well as joint ones, including those involving major changes in investment activities. Interstate targeted comprehensive programs in accordance with the programs of structural restructuring of the industries of both countries will provide for a set of measures aimed at moving capital to the most promising areas of the economy, as well as curtailing inefficient, uncompetitive industries and industries, in order to promote the activation of targeted structural policies, ensure vital economic systems, increase product competitiveness, preserve scientific and technologicaltechnical, production and human resources. In the process of implementing the Program, effective measures will be taken to strengthen and develop industrial ties based on mutual benefit between enterprises of the Republic of Kazakhstan and the Republic of Uzbekistan, aimed at increasing the production of advanced products, effective integrated use of raw materials, production facilities and labor resources, to expand export potential and develop import-substituting industries, and the implementation of interstate programs.

V. Coordination of measures to solve joint social problems The Republic of Kazakhstan and the Republic of Uzbekistan will cooperate in the field of humanitarian cooperation, establishment of information and cultural centers, healthcare, public education and training, culture, press and information. The program provides for further improvement of the legal framework for solving joint major problems of social protection and employment, working conditions, prevention of occupational accidents and diseases, occupational hygiene, through the conclusion of separate agreements. During the implementation of the Program, efforts will be coordinated to develop mutually beneficial cooperation in the field of healthcare and improving the sanitary and epidemiological situation, the production of medicines and medical equipment, the training of highly qualified personnel for various industries and the exchange of specialists, scientists, graduate students, interns and students, as well as in the fields of culture and art, physical education, sports, health resort business and tourism. Cooperation in the field of environmental protection and improvement, rational and resource-saving use of natural resources will be further expanded. Special measures will be taken to solve problems to improve the living conditions of the population of the Aral Sea region.

VI. Development of trade relations Trade and economic relations between the Republic of Kazakhstan and the Republic of Uzbekistan are developing on the basis of further implementation of market principles. Direct links between enterprises of various forms of ownership and other market entities have become crucial in accordance with national legislation, as well as international treaties to which the Parties are Parties. In the field of harmonization of customs legislation in force in the Republic of Kazakhstan and the Republic of Uzbekistan, coordinated work is to be carried out to unify customs rules and procedures, eliminate existing elements of discrimination in the customs clearance of goods and vehicles, and ensure close cooperation between customs, border and other authorities based on bilateral regulatory documents. The harmonization of the customs legislation of the Republic of Kazakhstan and the Republic of Uzbekistan provides for cooperation in the following areas: simplification of customs procedures in mutual trade; convergence of customs clearance procedures in various customs regimes; development of a unified approach to the organization of customs control and customs clearance of goods transported across customs borders; assistance in the implementation of customs control provisions of specially developed regulatory documents on intellectual property protection. The program provides for the expansion of cooperation in the field of transport and communications, the interaction of the transport systems of the Parties, bearing in mind their more efficient use in the transportation of passengers and goods, reducing transport costs, conducting coordinated tariff and tax policies for this purpose, implementing jointly developed programs and developing the transport infrastructure of all modes of transport, including those located on the territory of the other Party. The joint implementation of this task will be carried out in the following areas: improving the regulatory framework based on the implementation of existing and preparation of new bilateral agreements in the field of transport; attracting funds from Kazakh and Uzbek investors, as well as loans and capital from third countries to solve the above tasks. The order and conditions of transportation and the exchange of services are determined by separate agreements. The organization and implementation of trade relations between countries involves the active exchange of necessary information and, first of all, the comparison of data on foreign trade. Proposals will be prepared for the creation of a joint information system of the Republic of Kazakhstan and the Republic of Uzbekistan, which should ensure monitoring of the state of the markets for goods and services of both countries. Information will be submitted to the joint information system according to an agreed list of indicators by the relevant departments of the Republic of Kazakhstan and the Republic of Uzbekistan. According to the Program, interregional cooperation between the Republic of Kazakhstan and the Republic of Uzbekistan should be further developed, the most important direction of which will be the creation of favorable conditions for the socio-economic development of these territories, taking into account the previously established interregional economic ties, the preservation of customs and spiritual values of the population living in them.

VII. Program implementation mechanism The Program will be implemented through the implementation of specific actions by government agencies and business entities of the Republic of Kazakhstan and the Republic of Uzbekistan. In order to implement the Program, a Program implementation group (hereinafter referred to as the Group) and working groups on the main sections of the Program are being established within the framework of the permanent Joint Government Commission on Bilateral Cooperation between the Republic of Kazakhstan and the Republic of Uzbekistan. The Group includes Kazakh and Uzbek parts, each of which is headed by a Chairman appointed by the Heads of Government of the Parties. The group includes the heads of the working groups from the Uzbek and Kazakh Sides. Meetings of the Group are held as necessary, but at least once every six months, alternately in the Republic of Kazakhstan and in the Republic of Uzbekistan. The Chairman of the Group from the host Party chairs the meeting. The main functions of the Group are: coordination of activities for the implementation of the Program within the framework of national units; organization of the preparation of the annual Action Plan for the implementation of the Program for the relevant year, which is submitted to the meeting of the permanent Joint Intergovernmental Commission on Bilateral Cooperation between the Republic of Kazakhstan and the Republic of Uzbekistan; organization of the preparation of draft intergovernmental agreements on issues related to the implementation and coordination of the Program; preparation for consideration at meetings of the permanent Joint intergovernmental Commission on bilateral cooperation between the Republic of Kazakhstan and the Republic of Uzbekistan of certain issues related to the implementation of the Program; other functions determined by the regulations of the Group. The Regulations of the Group are reviewed and approved at a meeting of the Group no later than 60 days from the date of entry into force of the Agreement between the Republic of Kazakhstan and the Republic of Uzbekistan on Deepening Economic Cooperation for 1998-2005.

President

Republic of Kazakhstan

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