Kazakhstan and Hungary intend to reorient sales markets

On April 6, 2021, the Minister of Trade and Integration Bakhyt Sultanov met with the Minister of Foreign Affairs and Foreign Trade of Hungary Peter Szijjarto to discuss issues of trade and economic cooperation between the two countries.

Today, Hungary is traditionally an important and promising trade partner for Kazakhstan in Eastern Europe. Thus, the volume of trade in 2020 increased by 9.7% and amounted to $111.8 million.

According to Bakhyt Sultanov, there is a need for diversification between the countries. The Kazakh side offered a number of proposals for mutual trade and a list of potential goods from 45 product names totaling $302 million.

In addition, Bakhyt Sultanov informed that there are more than 60 producers of organic products in Kazakhstan, which are focused on the cultivation of oats, flax, sunflower and medicinal herbs. Some enterprises are currently being accredited by the authorized bodies of the EU.

It is noted that Kazakhstan already exports organic products to the EU countries for 10 million euros per year. At the same time, the potential is more than 200 million euros per year. The consumption of organic products in the EU is more than 20 billion. euro annually.

During the negotiations, the possibility of conducting trade missions in an online format to familiarize consumers with products of Kazakh and Hungarian production was considered.

Moreover, Bykhyt Sultanov informed about the potential of the agro-industrial complex of Kazakhstan, and also invited the Hungarian side to participate in scientific research and certification of goods for mutual recognition of product standards and quality.

The head of the department also spoke about plans to create a network of the national commodity distribution system with the creation of ORCS and cross-border trade centers (CTCs). The Hungarian side was invited to use the potential of the ICBC "Khorgos" to attract Hungarian investments, as well as to use it as a platform for wholesale and retail exports to the Chinese market.

Meanwhile, the parties discussed the potential of cooperation in the industrial sphere, cooperation in the field of water resources management, as well as interest in the field of geology.

"The countries need to improve the efficiency of transport services, mutual use of logistics infrastructure to enter neighboring markets, as well as the implementation of joint projects. For Hungary, these are the countries of Central Asia and China, and for Kazakhstan, the countries of Eastern and Central Europe, "-Sultanov said.

Recall that the transit potential of Kazakhstan is used by Hungary for the fastest delivery of export-import products with China by land transport in container trains (regular container trains run from the cities of China Xi'an, Shaanxi and others, as well as in the opposite direction through Kazakhstan and Ukraine).

At the same time, in order to implement joint projects, the Hungarian side proposed the creation of a Trade Representative Office of the Republic of Kazakhstan for the development of trade between Kazakhstan and the countries of Eastern Europe.

"The Hungarian Constitution stipulates that food products must not contain genetically modified additives. Therefore, we can guarantee that all products purchased from Hungary are safe. We agree that it is necessary to harmonize the certification system, and we are ready to recognize those certificates that are used by the countries of the Turkic Council on a mutual basis, " said Peter Szijjarto, Minister of Foreign Affairs and Foreign Trade of Hungary.

The Hungarian side also said that for the interaction of trade between the countries, it is necessary to provide a financial base and asked for support for the adoption of the Eurasian Development Bank.

Following the meeting, Minister of Trade and Integration of the Republic of Kazakhstan Bakhyt Sultanov noted that Kazakhstan supports the active integration of Hungary into the Turkic world by opening the European branch of the CCTS in its capital last year, and also expressed hope that the observer status of Hungary in the Turkic Council will have a positive impact on cooperation with both Central Asian and EU countries.