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Dear on-line trade-info platform guest,

European Commission Central Asia Invest V Program financed “ELSOFP CA Project” team is pleasedto welcome you to our on-line trade-info platform. How and why we are different from other various portalsand platforms? We are free of charge, trade operations between CA and Europe are real, consultation andsupport are delivered on-time, accessible training materials anytime!

All the materials produced during the ELSOFP Project are accessible in a user-friendly

manner/language via on-line platform specially designed for farmers, producers, traders and all interestedand involved into sustainable natural resource management, production, trade as well as consultations,standards and export etc.

Platform Info part contains all the training, marketing, international standards, GI, export, and otheruseful materials, which can be accessed at any time free of charge. The advantage of such an approach is an eternal access any materials can be accessed by any users at any moment. Any of the materials can bedownloaded for free in an adapted to user needs "packages" formed by users themselves ("shopping-basket"principle), therefore avoiding bulky chapters/documents but forming "manuals" reflecting onlytopics/questions necessary to each individual.

Platform trade part contains vast product choice for traders, farm and forest unit’s location information for requested traceability by EU purchasers, option to form groups for Organic certification and get interesting offers and opportunities from producers, find farmers and NTFP producers and connect with them on-line and many more. Why ELSOFP CA Project developed such a platform?

- To increase professional capacities of smallholder producers and MSMEs

- To promote intra-regional and international trade

- To enable business environment for smallholder producers and agri-food MSMEs

ELSOFP Project insights:

Name: Expansion of Kyrgyz, Tajik and Uzbek Local Smallholder Organic Farming and

Forest-based food products to EU Markets

Duration: 01/01/2020 – 31/12/2022

Location: Kyrgyzstan: Batken, Jalal-Abad, Osh and Talas regions

Tajikistan: Khatlon and Sughd regions

Uzbekistan: Andijan, Fergana, Jizzakh, Namangan, Samarkand, Sirdarya, Tashkent

Regions

The project aims to:

• Boost the competitiveness of micro, small and medium enterprises (MSMEs) in the agri-food sector ofKyrgyzstan, Tajikistan and Uzbekistan through increasing the efficiency and sustainability of production and processing of food products from smallholder farming and forest management operations
• Promoting the sustainable management of natural resources, through organic production practices, which reduce adverse impacts on climate change and enhance natural biodiversity.
• Establishing sustainable high-quality value chains for Central Asian food products to EU markets through improving collaboration and coordination of stakeholders along the value chain, particularly of smallholder producers, food processing/manufacturing enterprises and traders to EU markets.
• Strengthening enabling environments for local agri-food and forestry systems through promotingcertification of selected food products in line with market and relevant food hygiene requirements.
• Increasing the capacity of local advisory services, and support gender equality and sustainable economic development.

Please explore full potential of platform, by visiting: https://rural-cluster.org and follow us on Facebook For more detailed information, please attend our on-line ZOOM event on 4th of November 2020 – program attached

Thank you for your time and collaboration!

On behalf of EU CAI V Program Financed ELSOFP CA Project Consortia

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While the Covid-19 pandemic in Central Asian countries violates the well-being of people, the healthcare system here, like in other countries, is under increased pressure. At the same time, measures taken by the state to contain a pandemic, such as social distance, as well as proactive closure of borders, have a negative impact on national economies. In particular, on small and medium business, which affects the economic stability of the region. Due to the exposure of Central Asian countries to changes in foreign markets, whether it is the export of raw materials, the movement of labor migrants and their remittances, these countries are particularly vulnerable to worsening external conditions. According to preliminary forecasts, this will have adverse effects on economic growth, employment and the state budget. It is clear that in many countries it will not be possible to avoid a recession, but at the same time, it is necessary to restrain the pandemic.

According to the OECD (Organization for Economic Co-operation and Development) estimates, for each month the quarantine will take away two percentage points of GDP growth. The impact on GDP growth will depend not only on the magnitude and duration of stops at the national level, but also on the degree of decrease in demand for goods and services, as well as on measures for fiscal and monetary policy in the state.

In light of the particularly tight budget constraints faced by many governments in the region, a number of international financial institutions have mobilized to provide immediate financial support.

Country Overview:

Kyrgyzstan:has been hit hard by COVID-19, which is quickly draining public finances and paralyzing much of the country's economy. In order to counter the effects of the crisis, the government will need to approve further measures to support the private sector and strengthen the social protection system by monitoring money supply fluctuations. In the long run, reducing the budget deficit should remain the focus of government attention, and to ensure sustainable growth, measures will be required to improve the legal environment for business, formalize business activity and further reduce trade barriers.

Tajikistan:the economic costs of the crisis will be high, even if the country manages to keep COVID-19 with minimal distribution, given the structural problems facing the country, especially its dependence on the reduction of remittances. In the short term, the government will need to focus on allocating appropriate resources to protect public health, ensure compliance with containment measures, ensure food security, and support the private sector, including through financial programs and tax breaks. In the long run, the country should continue its efforts to improve the business climate in order to increase private investment and employment.

Uzbekistan:The global economic impact of COVID-19 is weakening the economy of Uzbekistan, in particular due to falling prices and sales of natural gas to Russia and China, and a reduction in the flow of remittances from workers in Russia (about 1.3 billion US dollars). As well as the partial closure of Kazakhstan as the main export market for the supply of fresh agricultural products. For the economy to withstand the shock, the government will have to find the right balance between immediate measures to accelerate recovery and continuous reform efforts to maintain the country's growth potential and diversify its economy.

The current crisis is a test of the willingness of Central Asian countries to build up regional political interaction, remove trade barriers, increase economic cooperation and resolve most of the long-term regional problems

At the same time, it is important for the region now to think about the post-crisis world, think out its own strategy in the new conditions and prepare for the expected structural changes in the world order and economic system. Cohesion and cohesion of regional efforts in confronting potential emergencies require further strengthening of regional cooperation, expanding the range of confidence-building measures in Central Asia, and deepening trade and economic cooperation. Strategic planning, mutual support and a balanced foreign policy can be key factors in quickly overcoming the pandemic and stabilizing the epidemiological and socio-economic situation in Central Asia.

More info...

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Due to the quarantine measures introduced by countries due to the spread of COVID-19, the opportunities for face-to-face meetings have been effectively replaced by online communication. Within the framework of the project “Expansion of Kyrgyz, Tajik and Uzbek local smallholder organic agriculture and forest-based food products to EU Markets”, working meetings are held online. On June 10^th, the ELSOFP Central Asia project took part in a regional webinar: “Promoting the Restoration of the Private Sector in Central Asian Countries”.

The online discussion organized by the OECD was very timely and useful, because during the webinar there was an opportunity to hear the reports of ministers, deputy ministers and senior representatives of government agencies of seven Central Asian countries (including Afghanistan and Mongolia), responsible for the development and implementation of anti-crisis measures; representatives of the private sector; international experts; representatives of the European Union and a number of international organizations.

As the Central Asian countries closed their borders with neighboring states and introduced restrictions on internal movement to stop the spread of the virus, the value chains were temporarily suspended.

Central Asian countries (with the exception of Kazakhstan) export goods to a very narrow number of markets. As a result of the concentration of economic activity, they are highly susceptible to external crisis, since the effects of declining demand for major exported goods are amplified by a narrow circle of trading partners and a lack of alternative vast number of niche markets.

“Measures that inhibit the spread of COVID-19 will lead to a significant increase in trade costs,” reflected EU Special Representative for Central Asia Ambassador Peter Burian in his message, “Falling trade incomes will create problems for countries with high levels of external debts. A protracted economic crisis could exacerbate socioeconomic inequality”.

In order to support the governments of Central Asian countries, the OECD conducted an analysis of the potential impact of COVID-19 on countries in the region, examining their strengths and weaknesses. This webinar made it possible to discuss the initial results of the work carried out by the OECD in the difficult conditions of the current crisis.

An important step is that the responsible political leadership of the Central Asian countries had the opportunity to exchange useful experiences (from taxation and monetary policy to employment and education) and plan a more coordinated regional course for economic recovery.

In the Central Asia countries, (taking into account the experience of European countries), they have developed their anti-crisis measures to stimulate business activity, mainly related to tax and lending benefits for the small and medium-sized business sector.

More details can be found in the full material in Russian (link) and English (link). All presentations and webinar recordings can be obtained by clicking on the link - in English: bit.ly/35lXfQR and in Russian: bit.ly/2XRChYd

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