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Tuesday, November 20th, 2018

In 2017, export growth reached 30% Zh. Kassymbek

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Minister for Investments and Development, Zhenis Kassymbek, reported on the implementation of the National Export Strategy approved in 2017. According to him, the key objective of this strategy is to increase non-oil exports by 1.5 times by 2022.

Zh. Kassymbek noted that from 2013 to 2017, the share of manufacturing exports in total exports of Kazakhstan increased from 23% to 32%.

Kazakhstan’s foreign trade turnover increased by 25% to $69.5 billion, exports increased by 30% and amounted to $48.3 billion.

“This year there is a positive export trend. So, for 2 months of 2018, according to operative data, exports amounted to more than $8.8 billion, which is 27.4% higher than in the same period last year,” the Minister Zh. Kassymbek said.

The geography of exports of goods includes 122 countries. The key markets are the PRC, the EAEU and the EU countries, which together account for more than 65% of exports. The Government provides financial and service support for export promotion. Annually financial support is received by more than 40 exporters, service support more than 400 exporters. As part of the service support for exporters in 2010-2017, 1800 manufacturers were covered, who were able to conclude export contracts for more than $2 billion. Expenses were reimbursed to 204 exporters for 1.6 billion tenge.

In 2017, eight new products were brought to foreign markets. There has been a steady trend since 2015 for the withdrawal of 7-8 new products to foreign markets.

Minister of National Economy, Timur Suleimenov, in his turn, noted that along with the growth of exports, the product line also expanded: supplies to foreign markets of household appliances, buses, rolled metal products, construction tools, vegetable oils, sugar, paper and other products increased (exports of these goods amounted to $1.5 billion).

Today, the markets of 27 countries are highlighted as priorities. The criteria were compiled on the basis of geographical proximity, transport accessibility, taking into account that transportation costs issues are the most important when deciding on the export of finished goods.

Also, the Minister of National Economy noted that today Kazakhstan is a party to the Free Trade Area Treaty concluded between the CIS countries, as well as the bilateral Free Trade Agreement with Serbia. These treaties regulate duty-free trade between countries.

In 2015, Kazakhstan and the EAEU countries signed the Free Trade Agreement with Vietnam.

May 17 this year in Astana on the site of the annual Astana Economic Forum, it is planned to sign a temporary (for three years) Agreement on a free trade zone with Iran. In addition, negotiations are under way to conclude free trade agreements with India, Egypt, Israel, Singapore.

“The conclusion of such agreements opens favorable conditions for domestic entrepreneurs to increase export supplies to foreign markets, and also allows diversifying the structure of exports,” T. Suleimenov said.

In general, the indicators for the countries with which agreements on the free trade zone have been concluded show a positive dynamics in the growth of non-primary exports.

As T. Suleimenov noted, a lot of work is carried out on customs regulation. Since January 1, 2018, the basic documents in the sphere of customs regulation have come into force: the EAEU Customs Code and the Code “On Customs Regulation in the Republic of Kazakhstan.” As a result of changes in the customs legislation, the number of documents provided in electronic form has been reduced from three (invoice, way-bill, declaration for goods) to one document (goods declaration).

Since January 1, 2018, the Astana-1 information system has been launched under the export procedure, which provides full electronic declaration and issue of a declaration for goods without the participation of a customs officer, which takes less than a minute to produce.

“Thus, the current system of export promotion, in general, corresponds to the best world practices and WTO requirements. The high level of resource availability, relatively inexpensive skilled labor, geographical location, participation in regional integration processes provide a competitive advantage for Kazakhstani exporters,” said the Minister of National Economy.

In addition, in order to provide government support to export-oriented small and medium businesses in the framework of the Unified Business Support and Business Development Program “Business Road Map 2020” and the Program for the Development of Productive Employment and Mass Entrepreneurship for 2017-2021, support measures such as subsidizing part of the interest rates on loans, partial guarantees for loans, as well as the supply of missing infrastructure. As of April 1, 2018, 498 projects (since the sale of 11,684 projects) were subsidized for a total of 9.80 billion tenge.

“These types of state support are aimed at creating favorable conditions for domestic producers and reducing the cost of manufactured goods, thereby increasing the competitiveness of Kazakhstani goods in foreign markets. In modern conditions, the determining factors are the stability and security that Kazakhstan provides for investors and recipients of services,” Timur Suleimenov summed up his speech.

First Vice Minister of Agriculture, Arman Yevniev, in his report said that within the framework of the State Program for the Development of the AIC, agricultural producers are subsidized in order to increase the volume of agricultural exports.

“In 2017, the export of agricultural products increased by 12.5%, including processing products by 10.7%,” said Arman Yevniev.

According to him, this was facilitated by the ongoing work on the harmonization of veterinary and phytosanitary requirements with China, the countries of the Middle East, as well as European countries.

For reference: The bulk of exports account for wheat, flour, oilseeds, barley, vegetable oil, cotton fiber, legume vegetables. The main sales markets are Uzbekistan, Afghanistan, Russia, Tajikistan, China, Iran, Kyrgyzstan, Turkey, Italy, Latvia.

In general, the geography of exports of agricultural products is expanding. Now the Chinese market is open to fish production, sheep breeding, beekeeping and horses, as well as wheat, bran and soybeans.

As a result, the export of agricultural products to China increased by 34.3%. In 2017, for the first time in China, 7700 tons of soybeans were exported to the amount of $3.1 million, and the first batch of pedigree horses of 228 heads for $190 thousand. Exports of frozen fish, vegetable oil and oilseeds increased for an average of 3.1 times.

Barriers have been removed to supply live sheep, frozen and chilled lamb to Iran. As a result, in 2017, 4763 live sheep and 509.8 tons of lamb were exported to Iran for the first time.

Also, restrictions have been lifted on the supply of large and small cattle to Saudi Arabia and the United Arab Emirates. In addition, barriers have been removed for the supply of meat and meat products, chicken eggs and poultry to the UAE. As a result, in 2017, for the first time in the Emirates, 34.2 tons of frozen beef and 24.1 tons of lamb were exported.

According to A. Yevniev, today the analysis of the sales markets is being conducted, on the basis of which it is planned to approve the Register of Export Markets and Products with the requirements of the importing countries. Work is also continuing to remove barriers and harmonize the veterinary and phytosanitary requirements of importing countries.

Chairman of the board of Export Insurance Company KazakhExport JSC, Ruslan Iskakov, also was at the meeting, he noted that within the framework of the National Export Strategy of KazakhExport, in conjunction with the MID RK and the Baiterek holding company, a number of changes in legislative acts were prepared: to the Budget Code in the part of state guarantees and guarantee mechanism, to the Business Code on the introduction of a subsidy mechanism in export credit.

Ruslan Iskakov said that a single portal was developed on the principle of a “single window” to support exporters on the platform Digital Baiterek. Within the portal, there are 5 support measures from KazakhExport. At the same time, together with the NCE, work is underway to inform the regions on measures to support exporters.

Akims of a number of regions: South Kazakhstan Zh. Tuimebayev, North Kazakhstan K. Aksakalov, Almaty A. Batalov, reported on the current situation at the local level and planned measures to increase exports in the regions further.

Following the consideration of the issue, the Prime Minister Bakytzhan Sagintayev noted that there is a positive dynamics in exports. In particular, goods are exported to 800 countries in 122 countries. By the end of 2017, exports grew by 30%.

Also, the Prime Minister gave a number of specific instructions.

The Ministry of Investments and Development was instructed in May this year to prepare a roadmap and report on the work done at the next meeting of the Council for Export Policy.

In addition, it is necessary to analyze how effectively Kazakhstani exporters take advantage of preferences specified in bilateral Free Trade Agreements with other countries.

“Over a year only 40 exporter companies took advantage of financial support. Of course it depends on our capacities. However, there is a need for expertize. For example, a service company receives 50 tenge for every 1 tenge from export contract. These are large indicators. We see that every tenge brings profit. That’s why it is necessary to continue the work in this direction. the Prime Minister said.

The control has been assigned to the Deputy Prime Minister Erbolat Dossaev.

Source: The Prime Minister of Kazakhstan

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