Kazakhstan will become the Chairman of the EAEU bodies in 2021

On December 11, 2020, the Minister of Trade and Integration of the Republic of Kazakhstan B. Sultanov took part in the conference on the review of WTO accession processes over the 25-year history of the Organization.

In his speech, he congratulated Croatia, China, Saudi Arabia and Kazakhstan on the anniversaries of joining the WTO and stressed the advantages of our country's membership in this Organization.

November 30 marked exactly 5 years since Kazakhstan joined the World Trade Organization. Our country became a full member of the WTO in 2015 after 19 years of intensive bilateral and multilateral negotiations. During this period, the country's trade legislation was fully brought into line with the rules and regulations of the WTO agreements.

The conditions under which Kazakhstan joined the World Trade Organization are aimed at increasing the competitiveness of domestic entrepreneurs, diversifying the national economy, creating a favorable climate for investment in the manufacturing and services sectors, and also taking into account transition periods for sensitive sectors of the economy.

 

Since Kazakhstan's accession to the WTO, almost 50% of all foreign investment has been attracted to non-primary sectors, in particular the service sector (30%) and manufacturing (18%). Currently, 164 WTO member countries account for 98% of world trade.

Minister of Trade and Integration of the Republic of Kazakhstan Bakhyt Sultanov spoke about the impact of joining the WTO on the country's foreign trade policy.

"The WTO principles implement the policy of external openness of countries, which is based on equality, mutual benefit, cooperation, have a driving influence on the economic development of the world and actively bear international responsibility, thus making efforts for the joint development of countries.

Despite the fact that Kazakhstan is only taking its first steps as a full member of the WTO, I would note three important advantages for the economy of Kazakhstan from membership in this Organization:

first, our business operates in predictable export conditions. WTO members cannot suddenly raise duties above their obligations under the WTO, create any non-tariff barriers, or impose unreasonable restrictions that may lead to financial losses for our exporters.

Any changes affecting trade should be introduced with timely notification to other countries. Predictability of Kazakhstan's foreign trade policy is also important for improving the investment climate of our country.

Second, the Organization's rules are based on the principle of non-discrimination. Our business in export markets receives the same terms of trade as the business of other WTO member countries, and even conditions that are not worse than those provided to local entrepreneurs.

Another advantage is that Kazakhstan can influence the trade policy of other countries. Kazakhstan can comment on the draft laws of other WTO members, hold consultations, and thus eliminate possible negative effects on Kazakhstan's goods, works and services in advance.

So, we have every right to monitor protectionist measures of other WTO member countries, and if they do not comply with WTO rules, we can submit such measures to the Organization's platform, including through the dispute settlement mechanism (the WTO court).

Such favorable trade conditions contributed to an increase in our exports in 2019 by 26% compared to 2015," Bakhyt Sultanov said.

At the same time, according to the Minister, today's realities tell us about the need to "reset" the Organization.

"The WTO is the only one of its kind and the most important platform for regulating and developing predictable and secure world trade. That is why Kazakhstan, together with other WTO member countries, is actively participating in initiatives to reform the multilateral trading system. Despite the fact that Kazakhstan is a relatively new WTO member, we have gained the trust of WTO members due to our active participation in new initiatives and correct foreign trade policy. Important results include Kazakhstan's chairmanship of the WTO Committee on Trade and Environment, a Special session of the WTO Council on Trade in Services, as well as the decision of WTO members to chair our country at the 12th WTO Ministerial conference, which will be held next year. I think that holding this important event under our chairmanship, which will make crucial decisions for world trade , is a great sign of confidence in Kazakhstan. " - concluded Bakhyt Sultanov.