ANNOUNCEMENT 30 Oct 2010In October 2010, the government of Kazakhstan announced a new commercial policy plan.
NUMBER OF INTERVENTIONS
The Programme for the Development of Trade for 2010-2014 - http://www.minplan.kz/economyabout/8433/35280/
By the Government Decree from 30 October 2010 #1143 the programme for the Development of Trade in the Republic of Kazakhstan for 2010-2014 was introduced. The 78-page document includes the issues of both external and internal trade development including wholesale trade, stock trade, e-commerce and public catering.
This is the first document of this type in Kazakhstan. This programme is based on Strategic Plan of the Development of the Republic of Kazakhstan until 2020 (by the President Decree from 1 February 2010 #922) as well as on the Plan of Forced Industrial Development of the RK in 2010-2014 (by the Government Decree from 14 April 2010 #302). The main objective of the programme is to create the institutional background for the sustainable development of trade in the Republic of Kazakhstan.
The programme sets up the benchmarks to be achieved by 2014 in trade development. Thus, with regard to external trade the annual trade turnover growth is defined at 10% level in 2010, 6.2% in 2011, 5 % in 2012, 3.7 % in 2013 and 4 % in 2014. According to the programme, the creation of Common Economic space with Russia and Belarus should be completed as well as the accession to the WTO by 2014. The programme is partly financed from the state budget - 20 million tenge (137,000 US dollars) in 2011, 35 million tenge (240,000 US dollars) in 2012, and 25 million tenge (172,000 US dollars) in 2013 through the budget line devoted to research in economics, trade and public administration. The main finance of the programme will be done through development institutions, private sector, FDIs and internal investments.
The programme starts with the situation in the internal trade in the Republic - it describes the current trends and numbers as well as the problems which need to be fixed. The part on external trade of the Republic follows. It talks about the trade policy instruments which Kazakhstan uses as well as it describes the newly created Customs Union. Thus, the share of the countries which are the members of the Customs Union in the Kazakh external trade is 18 %. The programme also describes the structure of the Kazakh external trade by sectors as well as by countries.
The programme emphasizes that the main imports of the Republic are value added products. It is important to emphasize that programme states "before the creation of the CU the trade policy was protecting the interests of the consumers and did not stimulate the development of the domestic production. Therefore, today there is a substantial share of the import products in the Republic which has a potential to be produced inside the country...Thus, the increased tariff trade protection up to 10-20 percent will have a positive influence on such industries asmechanical engineering, metallurgy, construction materials, chemical and oil-chemical production, light industries as well as pharmaceutical production."
With regard to the exports, the programme states that "before the creation of the CU the customs-tariff policy with regard to exports supported mainly domestic companies producing raw materials and not the value added products. Therefore, today the main exports of the Republic are raw materials in metallurgical and oil industries. Thus, the increase of the tariff protection of imports by 10-20 percent will result in the increased demand for the raw materials inside the country for such industries as mechanical engineering, metallurgy, construction materials, chemical and oil-chemical production, light industries as well as pharmaceutical production."
Although the programme gives a characteristic to the Kazakh trade policy as "limited" due to the creation of the CU, it emphasizes that the CU gives the Republic a whole range of advantages including the opportunity to conduct industrial policy and develop domestic producers based on the market opportunities and trade protection created by the CU. The CU also gives to Kazakhstan the strong negotiating position with "external world".
The programme emphasizes the necessary legal and institutional advances which need to be done to achieve the objectives of the trade strategy.