Íà êîíôåðåíöèþ  Ïåðñïåêòèâíûå âîïðîñû ìèðîâîé íàóêè- 2008

 

Ýêîíîìè÷åñêèå íàóêè/Âíåøíåýêîíîìè÷åñêàÿ äåÿòåëüíîñòü

ê.ý.í. Äæóìàñåèòîâà À.Ê.

Èíñòèòóò ýêîíîìèêè Ìèíèñòåðñòâî îáðàçîâàíèÿ è íàóêè Ðåñïóáëèêè Êàçàõñòàí

Trade Relationship between Kazakhstan and Europe

         Kazakhstan’s booming economy has enabled Central Asia’s largest country.   Kazakhstan has already attracted more foreign direct investment, $45 billion, than the countries of the region combined, and the figure continues to grow. Much of the investment has been in the oil and gas sector, yielding revenues which are being used for purposes as diverse as improving the quality of life,  implementing an ambitious strategy for Kazakhstan’s joining the ranks of the world’s 50 most competitive countries.

         The State Programme - ‘Path to Europe 2009-2011’ - is developed in accordance with the Address of the President of the Republic of Kazakhstan to the People of Kazakhstan.  Titled ‘The Promotion of the Prosperity of Kazakhstan’s Citizens is the Principle Goal of State Policy’, the presidential address was delivered on February 6, 2008. Adoption of the Programme is based on solving issues of internal development, working towards Europe, strengthening historically-formed relations, joining the European integration experience, as well as intensifying technological, energy, transport, trade, humanitarian and investment cooperation between Kazakhstan and Europe.

         In compliance with Kazakhstan’s foreign policy, the development of multilateral cooperation with European countries is of real strategic interest. At present, the potential for bilateral cooperation with Europe in technology, power engineering, transport and trade areas is not fully realized. It is important to note that European Union countries pay special attention to cooperation with Central Asia - with Kazakhstan in particular. The position of these countries is reflected in the ‘EU and Central Asia: New Partnership Strategy’ document, adopted at the EU summit in June 2007. The aim of the State Programme is to bring Kazakhstan to a new level of strategic partnership with leading European countries.

To achieve this, the following tasks must be completed:

1. Development and intensification of cooperation between Kazakhstan and
    European states in the following spheres:

         -        Technology

         -        Power Engineering

         -        Transport

         -        Technical Control

         -        Trade and Economy

         -        Interaction in SMB spheres

         -        Quality-of-Life

 2. Kazakhstan’s institutional and legal improvements must be based on
    European models.

         Export in Kazakhstan exceeds import. Kazakhstan generally exports raw materials rather than final goods. It exports products like oil, gas, wheat, coal, etc. However, Government agencies of Kazakhstan are planning to decrease number of exporting raw materials and to increase the number of exporting end-products. To achieve this goal Kazakhstan needs new technologies and qualified labor force. So, Kazakhstan is interested in collaboration with Europe, in order to get these technologies and qualify its workers. Intensification of technological cooperation with Europe has the ultimate goal of attracting advanced high technologies to Kazakhstan.

         Añcording to the Tables 1,2 ,  Europe is the main import and export partner of Kazakhstan. Kazakhstan should try to achieve the gradual transition towards European standards and certification of products which will further open-up European markets for Kazakhstan. 

Table 1 – Main trade partners for Kazakhstan, 2007

Trade balance , 2007

Export

Import

Country

%

Country

%

EU

45.1

Russia

34.7

China

15.3

EU

25.3

Russia

11.7

China

22.1

Iran

3.9

Turkey

3.3

Romania

3.4

Ukraine

3.1

USA

3.2

USA

2.3

Turkey

3.2

Korea

1.1

Switzerland

1.1

Uzbekistan

1.1

Japan

1.0

Belarus

1.1

Uzbekistan

1.0

Japan

0.7

Korea

0.8

Kyrgyzstan

0.6

Ukraine

0.7

Switzerland

0.6

Kyrgyzstan

0.6

Canada

0.5

Tajikistan

0.6

India

0.4

Afghanistan

0.4

Azerbaijan

0.4

Azerbaijan

0.4

Turkmenistan

0.4

Belarus

0.4

Israel

0.3

Saudi Arabia

0.3

Romania

0.3

Moldova

0.3

Norway

0.3

United Arabian Emirates

0.2

Bulgaria

0.2

Using data and figures of  WTO /1/

 

Table 2 – Main trade partners from World Integration Unions, 2007

Trade balance , 2007

Integration Union

Quantity

of members

Export, %

Import,%

 

NAFTA

3

3.3

2.9

 

Latin America

20

0.2

0.5

 

EU

27

3.2

3.3

 

Mediterranean

countries

9

 

0.2

0.3

 

ASEAN

10

0.1

0.3

 

 

         In order to strengthen Kazakhstan’s long-term presence in European markets, further work on acquisition of ports, gas stations and other units in Europe should be planned. As it was mentioned before Europe is interested in Kazakhstan’s market both for exporting goods and importing.

 

         . Figure 1 – Kazakhstan , Trade with  the members of European Union

 

         From the figure 1, it is obvious that exports of Kazakhstan to Europe exceeds imports /2/. Kazakhstan should improve the quality of its products, in order to make them competitive. In addition, creation of conditions for goods export and protection of the economic interests of Kazakh producers in European markets will allow Kazakhstan to significantly broaden its exports.

         In our opinion, Kazakhstan should increase export of agricultural products to Europe as we can not compete with other countries in exporting technologies, chemicals and end-products. Agricultural technologies used in Europe are of enormous interest for the further development of Kazakhstan’s national agricultural sector. Exporting raw materials is not a good strategy as it is not so profitable and the recourses are not endless. Exporting Energy to Europe is another key element of  relationship between two countries in which both of them (Also other countries) can benefit. By collaborating with each other (Kazakhstan provides with energy, Europe provides with up-to-date technologies) new technologies and methods could be developed and used all over the world.  

         The major field of Europe imports from Kazakhstan is energy. The EU is the world technological leader in the area of renewable energies, and as Kazakhstan has a potential for this kind of energy. Sharing experience between EU countries (participation at international conferences and exhibitions) can develop energy-efficient and pollution-free technologies.

         The import from Europe to Kazakhstan is concentrated on machinery, transport equipments, chemicals, textiles and clothes. Developing cooperation with European technologies in the spheres of transport communications, agricultural, power engineering is very crucial for Kazakhstan.   

 

Reference

 

1.     Report of  World Trade Organization . Trade Profiles 2007

2.     The  Changing Landscape of regional Trade Agreements: 2006.