Foreign trade policy of Republic of Kazakhstan. Problems and tendencies of development of foreign trade of Kazakhstan

Date: 2015-10-07; view: 851.

Tariffs

In the recent past, the trade policy of Kazakhstan had features that were problematic from the standpoint of WTO accession. The Asian Development Bank, a source that invites credence, comments that: “Kazakhstan has a rather complex tariff schedule with a large number of tariff bands and a high maximum tariff rate, although its non-weighted average tariff is not high.” ADB 2006, Table 3.1 adds numbers to these comments: it shows a maximum tariff rate of 100 percent, and says that the unweighted average tariff is 7.4 percent.

ADB 2006 notes that tariffs in Kazakhstan escalate (that is, rise with the level of processing), so that the effective protection rate for final processes is higher then the nominal rate. It gives as examples sausage (Table 3.3), imports of which bear a nominal tariff rate of 35 percent but an effective rate of 44 percent; and packed juice, on which a nominal rate of 15 percent is levied, but the effective rate of protection is 46 percent ADB 2006 remarks that excise taxes discriminate between foreign and domestic output. “In Azerbaijan and Kazakhstan, the coverage of excise taxes on imported and domestically produced goods is identical, but the rates of the former are considerably higher than those of the latter for some commodities.” Jensen and Tarr 2007, p 35 note that charges for rail transport in Kazakhstan differ according to whether the transported good is an import, an export, or a domestic product for sale elsewhere in Kazakhstan, but do not specify how they vary. Finally, ADB 2006 notes the existence of export taxes.

“Kazakhstan levies export taxes on a limited number of commodities when they are exported to non-EAEC countries.” Ferrous metal scrap is cited as an example with the comment that exports to the EU of this commodity are also exempt from the tax. ADB, 2006, chapter 3, p 5, also comments, however, that “a serious problem with tariffs in Azerbaijan, Kazakhstan, Tajikistan and Uzbekistan is that changes in tariff schedules are rather frequent and unpredictable.” Perhaps, therefore, these problematic features have already been removed. The current tariff schedule of Kazakhstan appears to be based on six percentage rates: 0, 5, 10, 15, 20 and 30. A complication, however, is that a number of tariffs are stated as, for example, “30 per cent but not less than 2 euros per kilo.” It is therefore possible that when this specific element is translated into a percentage, the actual rate charged is higher – possibly much higher – than 30 percent. If the import price of a product whose tariff is specified as above is one Euro, for example, the tariff rate actually charged would be 200 percent. Kazakhstan apparently plans further tariff reform in 2008. Informal reports suggest that many tariffs will be reduced, and that, although some rates will be increased, the arithmetic average tariff rate will be reduced.

The main purpose of foreign policy of Kazakhstan - the protection of national interests. According to the President, our country the main goal of so-called transition completely fulfilled - Kazakhstan is now politically and economically, is fully integrated into the international community.

In terms of entering into space Kazakhstan was forced to adapt to the tactics and strategy of the trade policy, connection arsenal of economic instruments. However, the transition to the stage of a balanced economy:

- No changes in the structure of exports of the country, which still belongs to the category of raw material, as evidenced by the intense growth in the share of raw materials, semi-products and food, over 80% of the total;

- Payments crisis, which for several years remains the Republic of Kazakhstan, made profitable export oriented industries on the world market in order to obtain a stable income. As a result, domestic demand economy, referred to the category of second-order, led to the residual principle satisfaction. This is evidenced by the failure of the rhythm of many industries due to lack of raw materials;

- The economy of the republic is subject to fevers caused by changing conditions in the world market and the fall in world prices. And as a result, has huge foreign exchange losses, and in nediversifitsirovannosti exports - the loss of the physical volume of exports;

- High technical and technological dependence of the national economy of the countries supplying high technology and capital-intensive products, helps deliver their not the most advanced types of equipment, machines, which, ultimately, increasing the volume of production, however, is not conducive to such building productivity, as in a number of newly industrialized countries. Moreover, a large part of foreign currency spent on maintaining current needs, acquiring the necessary components without creating the conditions for storage and future expansion of production;

- The lack of deep processing steps, and in some cases, the majority of primary non-renewable natural resources, is not conducive to settling large amounts of value added, which migrate from the country.

In previous years, the Republic of Kazakhstan held intensive measures to change and the rejection of their tariff barriers. First of all, was the abolition of import-export license, in accordance with the regulations from 1995 were removed licensing requirements for the export and import of goods, but, as in many states, the exception made weapons, drugs, precious metals, wild animals and etc. - Commodity groups, the number of which covers 19. In this category of goods, which are responsible for the need to maintain licensing, to a certain extent resemble not only the countries of the CIS, but also with many other countries. At the same time in 1995, Kazakhstan has eliminated quotas, restrictions cover only partially export infrastructure.

Factors hindering economic growth, were export registration, pre-shipment inspection, inadequate customs procedures and export tariffs. Export tariffs to the level of 1996 decreased from 5.3% to 4.1%, the same amount of products subject to such rates for the period decreased from 733 to 259. But a list of the categories of goods and services should still recognize factor hindering the process of liberalization. Among the countries of the Customs Union, all export tariffs were abolished in mid-1996.

The entry of the Republic of Kazakhstan to the Customs Union led to a change of weighted average tariff from 3.0% to 7.5%, which does not contribute to the development of foreign trade. All this, in the end, complicating the process of accession of the Republic to the World Trade Organization. Under the conditions of membership will improve not only foreign trade, but will also provide an advantage in attracting foreign investment, will guarantee the purchase MFN exports to Kazakhstan.

Long-standing practice of the foreign policy was aimed at creating a system of trade relations with the CIS states as well as foreign countries and was conducted in accordance with the principles of effective integration of the country into the global marketplace. However, analysis of the reforms suggests that Kazakhstan's path to economic openness is original, and it combines action, sometimes polar each other.

The first state program of economic stabilization 1991-1992. Scope of application of inter-republic trade maintained a system of state orders and almost to the state retains the control of foreign economic activity of the market. Adopted laws that period partly contributed to the decision of customs reform and pricing, the accession of the stage of recession and inflation led to the need for crisis management development program (1993-1995 gg.). It would be legitimate to assume that it gave rise to the establishment of the state strategy in foreign trade. Elements of the reform have been implemented to avoid the monopoly of the state and the transfer of business entities for foreign trade operations. Monopoly was confined to the export of strategic goods. During this period, tariffs were imposed on imports of goods increased import duties on luxury goods in a number of other commodities - aim was to protect domestic producers from foreign competition. On the borders of the republic were introduced customs regimes.

The largest public response caused steps indicating a departure from past too straight course on foreign liberalization. Back in 2000 there were first, but it is consistent, attempts to make foreign policy more pragmatic elements, use it as a tool to protect national interests.

Restrictions were imposed on the import of food products and a number of items for industrial purposes. In order to improve measures to protect domestic producers from import dumping of goods and products, subsidized by a foreign state at low prices, the enactment of legislation for their introduction. Authorized body established by the Committee for Control antidumping Department of Energy, Industry and Trade. This committee began work on the anti-dumping proceedings against imports of engineering products. Unlike in previous years, the exhibition and fair, the purpose of which was to familiarize consumers with goods produced in the country, were clearly propagandistic domestic producers of goods.

As part of the expansion of commodity markets have been won by the anti-dumping proceedings in the United States and removed anti-dumping duties that were imposed in respect of titanium sponge, uranium products and ferrosilicon.

Due to the need to protect domestic producers and to reduce imports from developing countries the Republic of Kazakhstan was initiated revision of the preferences for developing countries towards reducing them.

In 1999, an agreement was signed with the EU countries to increase the export quota for Kazakh steel with 30 tons to 76.4 tons, while its exports to the European Union.

The Republic of Kazakhstan continues to deepen the development of relations with the CIS Customs Union, CAPS. Special attention in 2001, as well as in previous years, was given to relations with the CIS states. The main problems solved republic in this direction was the coordination and implementation of the common foreign policy, including the exact observance of all rules and regulations contained in numerous documents signed within the CIS.

Since its independence, Kazakhstan has become a full subject of international legal relations, as a member of a number of major international organizations and a party to some major international conventions trade, economic, and social and the right character.

In today's foreign exchange management policy objective is manifested the need to facilitate international communication. In the field of international economic relations is reflected in the weakening of foreign exchange restrictions and desire to remove obstacles in the way. This rate corresponds to the policy of trade liberalization, which means the full range of government measures to regulate the domestic economy and foreign relations to promote foreign trade and the reduction of customs and other barriers.

However, the current liberalization has a number of significant differences:

- Expands the scope of regulatory measures that went beyond tariff policy and cover all sectors of economic life;

- Increased the role of concerted international action, coordinated efforts of countries to multilateral liberalization of foreign trade exchange;

- Managed to reduce the overall long-term "noise level" foreign trade.

The tools of foreign policy is the system of bilateral and multilateral treaties. But the most common in developed market economy which tariffs and non-tariff barriers.

Significantly increased the degree of integration of Kazakhstan into the world economy, as evidenced by the growth rate of the "financial openness" in 2006 to 77.6%, or an increase by 1997, more than 25 times, and the measure of "openness" of trade to 92.5 %.

Kazakhstan's trade turnover with CIS countries increased by 2 times, and with the countries of the "far abroad" almost 4 times - with a significant excess of exports over imports. Since independence, Kazakhstan has attracted foreign direct investment of about $ 50 billion, far more than Russia.

Kazakhstan's foreign trade has been steadily increasing. In 2006, foreign trade turnover exceeded 60 billion U.S. dollars, an increase compared with 1997, by 4.5 times. In 2007, foreign trade turnover totaled 80.51 billion (an increase of 30.0% on 2006), while Kazakhstan's exports amounted to 47.75 billion U.S. dollars (28.4%), import - 32.76 billion (+38.4%).

The main trade partners of Kazakhstan became Russia - 20.2% of total turnover, China - 11.4%, Italy - 11.1%, Switzerland - 9.6%, France - 6.8%, Germany - 3.7%, Netherlands - 3.5%, Ukraine - 3.3%. Iran - 3.1%, USA - 2.5%, Turkey - 2.4% United Kingdom - 2.3%, Japan - 2.2%.

In the structure of Kazakhstan's exports in 2007, the share of mineral products was 69.7% (including oil - 58.7%), metals and products from them - 17.1%, chemical products - 4.0%, food products and raw materials for their production - 4.3%, machinery and equipment - 2.0%. The largest share of the total exports (after oil) accounted for refined copper (2516 million), ferrous metals (1648 million), ferroalloys (1418 million), petroleum products (1,373 million dollars), wheat (1170 million), zinc (1009 million), iron ore (796 million U.S. dollars), precious metals (U.S. $ 730 million), natural gas ( 648 million U.S. dollars), alumina, coal (522 million), machinery and equipment ($ 350 million), cotton fiber - 180 million.

The main buyers of Kazakh products were Italy (16.3%), Switzerland (15.6%), China (12.0%), Russia (10.0%), France (8.4%), Ukraine (2.4 %), the UK (2.1%), Turkey (2.0%), Uzbekistan (1.8%), the U.S. (1.0%), Finland (0.9%), Germany and Portugal (0, 8%), Japan (0.7%).

Government is intensifying propaganda Kazakh products that its parameters are not inferior or superior to their foreign counterparts. This will be achieved through the organization of exhibitions and competitions.

President Nursultan Nazarbayev signed the Law of the Republic of Kazakhstan "On Ratification of the International Convention on the Simplification and Harmonization of Customs Procedures." The law is designed to implement international standards in the field of customs in the forthcoming accession of Kazakhstan to the World Trade Organization and the best interest of the world trade. The Convention is an international treaty of a universal character of the interstate, adopted by the World Customs Organization.

To date, 174 members of the organization is the state of these parties to the convention - 59 countries, including the European Union, as party to the agreement may not only individual countries, but also economic communities, customs unions, as the United States, China and other major trading partners of Kazakhstan.