IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: No inception date

Trade finance

On 1 August 2014, with Decree of the President of the Republic of Kazakhstan No. 874, approval was given to a state programme of industrial-innovative development of Kazakhstan for 2015-2019 (the account of which is 119 pages in length).
 
Its objective is to stimulate diversification and improve competitiveness of the secondary industry in 6 priority areas: metallurgy, chemical, petrochemical industry, engineering, construction materials, food industry. In turn, they are sub-divided to: 1) ferrous metallurgy; 2) non-ferrous metallurgy; 3) oil refining; 4) petrochemical industry; 5) food production; 6) agricultural chemistry; 7) production of chemicals for industry; 8) production of motor vehicles, its parts, mountings and engines; 9) production of electrical machinery and electric equipment; 10) production of agricultural equipment; 11) production of railway engineering; 12) production of machinery and equipment for mining industry; 13) production of machinery and equipment for oil refining and oil producing industry; 14) production of construction materials.
 
A key goal of the state programme is stated the reduction of barriers to the development of enterprises. Policy measures in the following directions will be implemented:
 

  • Industrial regulation

It is foreseen to reimburse the expenses on product certification and quality management systems in line with international standards (API, ASTM, GMP, EN).
 

  • Internationalization

The financial support mechanisms will include: pre-export financing and insurancing; export leasing for lending Kazakh engineering products for foreign consumers; trade financing of export operations through insurance or coverage of documentary operations; coverage of expenses for promotion and transportation of domestically-processed goods
 

  • Technologies and innovation

Allocation of grants for industrial research and innovation, for example for technology acquisition; for technology commercialization; for productivity enhancement; implementation of administrative and production technologies).
 
Co-financing of SME and large-scale enterprises performing technical diagnostics is also foreseen.
 

  • Financial resources

The following initiatives will be implemented: subsidy of loan fee rate or financial leasing agreements for investment objectives and for working capital; issuance of loan guarantees.
 

  • State purchases

Long-term state purchases contracts will be concluded. Loan fee rates or financial leasing agreements, issue of loan guarantees by second-tier banks for projects with the cost up to 750 mln. tenge will be also subsidized. 

This state programme contains liberalising statements. For example, 'to improve *Doing Business* conditions, enhance country's competitiveness (Global Competetivness Index), to attract more foreign direct investments (World Investment Report), to reduce the share of state participation in the economy through the implementation of the planned privatization, taking into account the principle of Yellow pages'.
 
The state programme also contains discriminatory statements. For example, 'It is necessary to increase the share of domestic producers both in foreign and domestic markets. Given the orientation of the Program on production development in the territory of the Republic of Kazakhstan we need to increase the access of goods to foreign markets and, in particular, markets of macro-regions therefore reducing discriminatory barriers'.
 
In conclusion, this state measure can be assessed as amber.

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