Kazakhstan and Kyrgyzstan signed the Concept of creating industrial hubs on the border

Minister of Trade and Integration of the Republic of Kazakhstan Bakhyt Sultanov and Deputy Chairman of the Cabinet of Ministers-Minister of Economy and Finance of the Kyrgyz Republic signed the Concept of Creating and operating Joint Industrial Trade and Logistics Complexes (ITLC) on the border between the Republic of Kazakhstan and the Kyrgyz Republic.

The agreement on the creation of new industrial and logistics hubs was reached following the results of mutual visits of the Heads of State and the meeting of the Kazakh-Kyrgyz Intergovernmental Council held in early April this year.

The centers of cross-border cooperation are considered as a new growth point for increasing mutual trade and bilateral projects in the real sector of the economies of the two countries.

For reference: the volume of trade turnover between Kazakhstan and the Kyrgyz Republic at the end of 2020 amounted to 796.2 million dollars, of which Kazakhstan's exports to the neighboring country amounted to 562.6 million dollars, and imports – 233.6 million dollars. Kazakhstan is on the 3rd place in terms of exports and the 2nd place in terms of imports to Kyrgyzstan.

The Centers will create the most favorable conditions for attracting local and foreign businesses, developing joint ventures by providing preferences for investors.

At the first stage, the Kazakh side considers the territory of checkpoints located between the Zhambyl region of Kazakhstan and the Chui region of Kyrgyzstan.

At the same time, the Kazakh side has the opportunity to expand the proposed territory defined for the industrial and logistics complex. Thus, it is planned to improve the operation of the existing Karasu checkpoint, modernize the adjacent infrastructure and include the Center in regional distribution networks. The project is also included in the orbit of the international economic corridor "Almaty – Bishkek".

The priorities in the activities of the ITLC are:

- industrial cooperation, creation of new production facilities and jobs;

- increase in the production of consumer goods with a high competitive advantage, including food and agricultural products;

- improvement of logistics and infrastructure;

- attracting new technologies;

- diversification of agricultural production;

- creation of conditions for the implementation of interaction between state bodies, local self-government bodies and subjects of agricultural production on the basis of public-private partnership;

- creation of joint ventures for the production of consumer goods with the introduction of new technologies.

 

The creation of joint Kazakh-Kyrgyz industrial trade and logistics complexes will allow implementing profitable export-oriented projects and increasing the competitiveness of individual sectors of the economy, including through the use of advanced production and sales management technologies. The creation of the ITLC will make it possible to place production lines in an economically attractive region with significant volumes of raw materials and a developed infrastructure. And in general, to expand the market shares of countries in global markets.

The inclusion of ITLС in regional distribution networks will ensure the conclusion of direct contracts for the supply of raw materials and the sale of finished products, while reducing the cost of finished products. The development of unified standards on the technology of pre-sale preparation and sale of goods, as well as the establishment of partnerships and cooperation with traders and various international organizations will also contribute to the increase in the export of agricultural products of the two countries