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Introduction of Kazakhstan into the WTO: features, problems and prospects


Date: 2015-10-07; view: 711.


 

Kazakhstan has begun the closing stage of negotiations about the introduction into Worldwide trading organization (WTO) which have been initiated in 1996. Bilateral reports are signed already with sixteen countries, only for last two months the special Study Group has carried on negotiations with six countries-members of WTO - the USA, Canada, Brazil, Taiwan, Switzerland, Australia, as well as with the European Union.

The introduction into WTO bears with itself both pluss, and minuses. On the one hand, it opens to the enterprises of the countries-members access to cheaper import accessories and raw material, and the population – to cheaper goods and services. But, on the other hand, in spite of the fact that the economy as a whole wins, separate branches can injure, and it is essential.

The introduction into WTO bears with itself both pluss, and minuses. On the one hand, it opens to the enterprises of the countries-members access to cheaper import accessories and raw material, and the population – to cheaper goods and services. But, on the other hand, in spite of the fact that the economy as a whole wins, separate branches can injure, and it is essential.

What expects Kazakhstan after its introduction into Worldwide trading organization? A number of independent experts considers, that the country mass shocks expect. Representatives of small and average business will go bankrupt, not having sustained a competition to the foreign manufacturer which practically it is free, without the high customs duties, will enter the Kazakhstan market. Besides the introduction into WTO will open the markets to cheap import agricultural products to which local manufacturers can compete íåñêîðî.More likely - the agriculture in the country will cease to exist, that will lead to decrease in a standard of living of peasants and dependence of the country on the import foodstuffs.The analysts who have been brought up within the limits of the Soviet school, believe what to give up as a bad job small and average business, as well as an agriculture more than dangerously for economy of any country.

Consumers, apparently, should welcome gleefully delivery of the import goods as the prices will sharply decrease, the assortment will essentially extend. However hardly the population can take pleasure in all this magnificence: the goods will be available only that who in new conditions can earn money. And today about a quarter of the population of Kazakhstan works in small and average business, and after the introduction of the country into WTO as practice of other states shows, many of them will simply be ruined. The survived businessmen should master new technologies, that, in turn, can cause mass lay-offs.

In opinion of leading economists of Kazakhstan, already now, not having entered yet in WTO, it is necessary to think over special programs on redistribution of potentially liberated labour, and to approach to process of negotiations to establish rather high tariffs for the products requiring protection against expansion of the foreign manufacturer. If these measures will not be accepted, splash in mass protest actions to not avoid, analysts consider.

Behind examples far to go it is not necessary. To take the southern neighbour - Kirghizia. In spite of the fact that Kirghiz have entered WTO per 1998, special economic growth in the country has not occurred. Moreover, in comparison with 1998 the volume of commerce of Kirghizia with the third countries has decreased: in 1999 — for 10,6 percent, in 2000 — for 5,9 percent. According to National statistical committee of Kirghizia, the volume of an industrial output of Kirghizia in the first half-year 2003 has fallen off for 9 percent in relation to 2004. In the beginning of 2005 203 industrial enterprises, or 33 percent from their general number completely stood idle. The volume of investments into construction has decreased for 17,8 percent.

Probably, with the introduction of Kazakhstan into WTO anti-dumping sanctions will suspend import of substandard Chinese production. But it is one side of a medal. The second consists that numerous and a number of the fine enterprises specializing on commerce by the Chinese goods, will go bankrupt and will fill up army of beggars and unemployed. And poverty, as is known, generates revolution. Whether consider these features the Kazakhstan officials, negotiating with the countries of the European Union? Proceeding from that "minuses" of the introduction into WTO are not terrible to the large Kazakhstan enterprises, the basic which percent of actions belongs to the people approached to family of the president, fine domestic businessmen hardly should count on support of the government. Besides there is a version, that the introduction of Kazakhstan into WTO — one of political steps of the president of the country to treasured objective — to preside in OSCE. Apparently, that prospect of Kazakhstan will hold it a post directly to depend on results of cooperation with the countries of the European Union. In it, as well as in prospects of the introduction into WTO that carefully disguised reality of negotiations also is covered.

The basic positive instants of the introduction of Kazakhstan in WTO will consist in the following:

First, besides Kazakhstan will be recognized by the country with the open market economy integrated into the world economy and world structures, assisting its progress, it automatically receives in attitudes with all countries-members of the organization a most favoured nation treatment.

Secondly, in connection with the big involvement of our republic into a global export of oil, petrochemicals, natural gas, the electric power and coal for Kazakhstan the fundamental importance in WTO will have a condition of conducting commerce between participants of WTO on not discrimination basis. The introduction into WTO will give Kazakhstan a number of advantages in the field of licensing export, standards and applications anti-dumping and countervailing duties and as a whole will assist growth of the external economic activity of the state.

Thirdly, from expansion owing to more effective competition in the market of assortment and quality of the goods and services, the Kazakhstan consumers should win decrease in their price. Reduction of prices will concern not only the ready import goods and services, but also domestic in which manufacture import components are used. At the same time there will be respective alterations in volumes and structure of consumption which will come close to standards of industrialized countries. Increase of solvent demand will positively affect growth of manufacture, to testify to improvement of social and economic position of the population.

Fourthly, for manufacturers potential benefits will be connected with reception of the facilitated access to the world markets of the goods, services, the capitals, the international-recognized rights for protection of national economic interests in these markets. There will be a decrease in commercial risks - due to an establishment of more stable mode of commerce, as well as reduction of transport expenses - owing to warranting freedom of transit of the goods on territory of the countries-members of WTO. All this, in general, will assist decrease in a net cost of Kazakhstan production.

Fifthly, creation of the civilized conditions of a competition and a transparent legal field will stimulate the general acceleration of structural reforms and will give a push for creation of competitive economy. To it will be assisted with reduction of the national legislation (in particular, in the area of the taxation, customs regulation, standardization and certification, regulation of area of services, competitive policy, protection of intellectual property) in conformity with norms and rules of WTO.

CONCLUSION: If make the specific analysis economic consequences of membership of Kazakhstan in WTO our country can to overcome an obstacleand to develop plusessides of economic and sociological progress. Having entered WTO Kazakhstan will leave from a number of developing countries in a number more developed and can, thus Kazakhstan will find the niche in the world economy.

 

References:

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3. King P. International Economics, Globalization and Policy: a reader / Philip King, Sharmila King - fifth edition - New York: McGraw-Hill, 2009 – 376 p.

4. Feenstra R.C. (2004), Advanced International Trade. Theory and Evidence, Princeton University Press.

5. James Rauch (2008). "growth and international trade," The New Palgrave Dictionary of Economics. 2nd Edition. Abstract.

6. M. June Flanders (2008). "international economics, history of," The New Palgrave Dictionary of Economics. 2nd Edition. Abstract.

7. Reuven Glick (2008). "macroeconomic effects of international trade" The New Palgrave Dictionary of Economics. 2nd Edition. Abstract.

8. Smith, Charles (2007). International Trade and Globalisation, 3rd edition. Stocksfield: Anforme. ISBN 1-905504-10-1.

9. Stanley W. Black (2008). "international monetary institutions," The New Palgrave Dictionary of Economics. 2nd Edition. Abstract.

10. Paul R. Krugman International Economics: theory and policy: / Paul R. Krugman – seventh edition- Boston: 2006

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12. Caves R.E. World Trade and Payments: an introduction / Caves R.E. – Boston, 2007

 



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Foreign trade policy of Republic of Kazakhstan. Problems and tendencies of development of foreign trade of Kazakhstan | Trade and economic cooperation in the CIS and in Central Asia. Experience of integration processes for Kazakhstan in the sphere of international trade
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