However, while trade rules play an important role, the underlying economic conditions and the level of development of domestic market are often of critical importance in determining the prospects for agricultural development and the directions of trade.

A regional workshop on “Agricultural Technologies and Trade Policy in Central Asia: Issues and Prospects” – organized by FAO in collaboration with UNDP and Ministry of Agriculture of China – addressed three broad topics: the relationship between agricultural and trade policies; changes inflicted on agriculture and agricultural policies by trade agreements and deeper regional integration; and the conditions for fostering the adoption of agricultural technologies and developing productive capacities to promote trade.

The event brought together representatives of Ministries of Agriculture and Economy from four Central Asian countries (Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan), Ministry of Agriculture of China, World Trade Organization, Eurasian Economic Union, private sector associations and international organizations, serving as a platform for an open dialogue on the pressing issues affecting agricultural trade in the region.

Currently, the governments in Central Asia are challenged with a difficult task of ensuring that trade policy changes are consistent with the overall national growth and development goals.

Vice-Minister of agriculture and amelioration of the Kyrgyz Republic, Erkinbek Choduev, highlighted that Kyrgyzstan is the most open economy in the region, which poses both challenges and opportunities for national development and food security.

Jamie Morrison, senior economist at the Trade and Markets Division of FAO, underlined that trade policy needs to be context specific and dynamic. “It is essential for countries, he said - to participate in trading systems in a way compatible with their development and food security objectives, increased capacity to analyse developments in international agricultural markets, trade policies and trade rules.”

Domestic support provisions in the WTO, of which Kyrgyzstan and Tajikistan are members and which Kazakhstan is about to accede, place limits on certain types of government assistance to farmers.

However, in the case of smaller economies with limited public resources, these rules do not constitute a serious constraint to providing support. In Kyrgyzstan, for example, national experts estimate that support to agriculture is in the range of 1-2 percent of the gross production value.

Trade rules are the only factor affecting the agricultural sector, however. Other, in particular, macroeconomic, variables can play a greater role in some circumstances. For example, Dmitry Rylko, the General Director of the Institute for Agricultural Market Studies (IKAR), Russia, demonstrated, that the sharp devaluation of the National currency in Russian Federation had a more sizable effect on the domestic markets in Russia than the accession to the WTO.

In the case of Kyrgyzstan, on the other hand, underdeveloped land and labor markets are some of the key supply constraints that undermine country’s export potential, according to Roman Mogilevskii, senior research fellow at the University of Central Asia.

Government support plays a major role in preparing the agricultural sector for greater competition as the countries open up, however the type of support matters. The participants emphasized the need for differentiated programs that would address the needs of family farms, which typically lack access to productive resources and access to markets.

Low quality of trade statistics to monitor the evolution of regional trade was also mentioned by participants as one area that needs urgent government attention.

Participants from the private sector pointed to the need to reduce the red tape in imports and exports and lower non-tariff trade barriers. Difficulties with obtaining sanitary and phytosanitary certificates were mentioned as typical constraints.

Moreover, some of the sanitary and phytosanitary measures and regulation within the Eurasian Economic Union need clarification in order for traders to take advantage of the opportunities that the single market presents.

Government assistance for standardization of quality and ensuring consistency of agricultural products is also essential for expanding trade opportunities.

Moreover, coordination across the different donor-supported programs to enhance agricultural trade in Central Asia is needed in order to make lasting contributions to broad-based national development.

The last day of the three-day workshop was dedicated to strengthening South-South cooperation between the Central Asian countries and China. The FAO-China South-South Cooperation Program will assist the countries in Central Asia improve their agricultural productivity and food security through adoption of agricultural technologies and appropriate policies, by sharing expertise available in China. The event served to establish the next steps for this Program implementation in Central Asia, which involves formulation of national projects with assistance from FAO and Chinese experts.