World Monitor Magazine, №1/2020 WM_March 2020_FOR WEB (12.03.) | Page 9
DESTINATION KAZAKHSTAN
In 2019, Kazakhstani products were
exported to 120 countries (in 2018 – 119
countries), with 800 commodity items
exported. At the end of 2019, the total
volume of exports of non-primary goods
from Kazakhstan amounted to $15.1
billion. By 2025, the ministry is faced with
the task of increasing export volume of
non-primary goods to $29.5 billion; that
is, almost two times the current figures.
Last year, there was a slight decrease in
the export of processed goods compared
to 2018 (in 2018 this figure was $15.7
billion). There are explainable reasons for
this.
The consequences of the accident at
the Arcelor Mittal steel mill remain,
which resulted in a 36.4% decrease in
the export of flat rolled non-alloy steel.
Technical work on the main equipment
of the Eurasian Group (ERG) contributed
to a decrease in the export of aluminum
and its products by 9.6%. As well as a
decrease in world prices for ferroalloys,
with their exports falling by 12.8%. With
the introduction of duties in Uzbekistan
and Tajikistan, there has been a decline
in flour exports.
Due to the coronavirus, the Chinese quar-
antine has complicated the conditions of
world trade and forced all countries to di-
versify their economies and change their
export structure. Kazakhstan is no excep-
tion.
The Ministry of Trade and Integration
conducted work to study the export
opportunities of various sectors of our
economy and the needs of markets in
different countries.
Within the framework of foreign trips
of representatives of the Ministry of
Trade and Integration of the Republic of
Kazakhstan the prospects for increasing
Kazakhstan's export supplies were
discussed. For each country, a list of
Kazakhstani products was compiled that
could be supplied to these countries.
The list was compiled based on the results
of extensive analytical work: studying
imports to each of these countries,
Kazakhstan's exports in general, and to the
country in question. That is, if Kazakhstan
produces goods that are imported,
for example, into the United States or
Switzerland and are in great demand
there, it was calculated the following
way: did Kazakhstan have volumes to
export or needed to increase exports, how
would the Kazakhstani product would be
competitive in price (in terms of quality,
products from Kazakhstan in foreign
markets is very competitive). In the case
of a positive assessment, the product fell
into the list of goods with export potential
to this country.
Kazakhstan offered more than 263
commodity items to the countries of the
European Union, Switzerland and the USA
for a total of more than $2 billion. It is
both about expanding the current volume
of trade and the appearance of new
products.
In trade with Russia, it is possible to
expand export by 87 commodity items,
worth almost $250 million. With the
countries of Central Asia (Uzbekistan,
Tajikistan, Kyrgyzstan, and Turkmenistan)
– for 236 processed products worth
almost $0.5 billion. We have offered 60
positions to the PRC market, with a total
value of almost $1.3 billion.
In total, we have offered eight states and
the Eurozone lists of our goods is worth
more than $4 billion.
The state provides maximum support to
enterprises that export.
So, in 2019 alone, 92 exporters received
preferential loans in the amount of
139.3 billion tenge, insurance support –
74 exporters in the amount of 90 billion
tenge, and also 3 billion tenge were
directed to service support.
Along with this, in 2019, measures
were first introduced to support the
manufacture of processed products.
Thanks to this, 139 export-oriented
enterprises were able to reduce their
transportation costs by almost 4 billion
tenge. Through rail, air and road transport,
Kazakhstani products were exported
to the markets of Russia, Uzbekistan,
Afghanistan, Tajikistan and China.
In terms of marketing support for the six
months of the Ministry’s existence, more
than 50 events were held abroad with the
participation of about 300 Kazakhstani
companies. As a result of the measures
taken, 61 export contracts were concluded
in the amount of more than 114 billion
tenge or $300 million.
To strengthen cooperation on promoting
the export of Kazakhstani products,
establishing trade cooperation and
concluding transactions with the Ministry
of Foreign Affairs, a joint action plan was
forged.
We expect that these mechanisms will
reduce production costs by 5-10%, as
well as expand the geography of exports
and the range of goods. For example,
new markets have already appeared.
Kainar-AKB LLP exports over 60% of its
products to the CIS countries, the Russian
Federation, Germany, Afghanistan, China,
the United Arab Emirates, and also to
Italy.
The ministry has begun work on
introducing a new system of state
support – an exporter’s acceleration
mechanism, which will allow Kazakhstan’s
entrepreneurs to gain free, intensive
development of the company in export
matters, get an in-depth analysis of the
supported by EUROBAK
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