European Union and Kazakhstan: integration issues and prospects

Anel Sharipova

Professor of Abai Kazakh National University

Kaliya Nesipbayeva

Professor of Abai Kazakh National University

Almaty, Republic of Kazakhstan

European Union and Kazakhstan: integration issues and prospects

The contemporary world is developing through an integration process. The integration of trade and economics, currency, customs and policy in different regions of the world is being generated. It is an objective and natural process. The European Union in this regard can serve the purpose and is the model of integration for most regions of the globe. The experience of the European Union represents an interest for all the countries, who works for sustainable and effective economical and political integration, building foundation for unified market and currency. All of these require creative and critical approach to be applied.

In the view of EU, the New Independent States are not the Third World countries. They are and will be the closest neighbors of the expanding EU. EU is interested to support The Newly Independent States in their transition stage, in particular, the prospects of their more participation in international economic system. Not the last place in cooperation of the EU with the CIS countries occupies concern on development of living standards and prosperity of the CIS people.[1]

The main diplomatic objective for every country is to accomplish foreign policy, which will be identical to ‘international scene’ and economic potential of the country. Reality of aims, their compliance with internal requirements of the country, without claims for global presence and external greatness, also the flexibility and adherence to principles in protection of national interests are the features for the foreign policy healthiness.[2]

And our country is not an exception. The interests of the Republic of Kazakhstan – as the large Eurasian country have multilateral nature and are not predefined by one geographical direction. Under existing conditions Kazakhstan needs multilateral foreign policy. This policy doesn’t mean the dissipation of power and resources in all directions. It is more the policy and strategy of multilateral partnership with all interested countries.

Kazakhstan has reached quite a number of things since beginning of its independence. It has entered period of economic transformations, freedom of will and democratic elections. Kazakhstan over performed all CIS countries in the tempo and depth of structural reforms. Trends in economy are showing that the country has entered the stage of sustainable growth. Success in economic development, undoubtedly, creates support and foundation in provisioning of better foreign policy. Results which were reached by the initial years of independency now can be increased.

Nowadays, when Kazakhstan is reinforcing collaboration and coordination with other countries on the regional and global levels, understanding the main points of processes, which are existent in Europe, allow us to select adequate strategy of cooperation, acceptable for our country and region as a whole.

According to the concept of foreign policy, one of the main priority directions for the Republic’s of Kazakhstan foreign policy is the European Union (EU). Today the European Union is well integrated economic association, which represents itself as one of the center of the world economy. Expansion of EU, which includes the appearance of Poland, Hungary, Czech Republic, Slovenia, Slovakia, Lithuania, Latvia, Estonia, Malta and Cyprus, permits to increase European market and later on strengthen economic potential of EU. At the same time integration processes get over to political sphere successfully, where was made an attempt to consolidate Europe via taking up united European Constitution.

During past 10 years period of time Kazakhstan and EU has organized collaboration in economic, political, social, cultural and educational spheres. EU helps in public health services, social assistance, scientific researches, market reforms and economic liberalization.

Active economic cooperation of Kazakhstan with other countries of EU permits not only to develop economic potential of republic, but also use great economic integration experience of European countries, which is very valuable for our country, because of leading integration processes within the limits of CIS, EAEC and OCAC.

In recent years the European Union also demonstrates certain geopolitical ambitions regarding regions of Caspian and Central Asia. European nations participate in the process of peaceful solution for Afghanistan. Some European countries accommodated their military forces in Central Asia in the context of antiterrorist operation.

At the same time the transatlantic alliance between EU and USA is being challenged. The time between 2003 and 2004 is the moment of crisis in transatlantic relationships. The future of relationships between USA and Europe can’t touch the interest of the Central Asian countries.

The involvement of EU as one of most powerful forces in the region of Central Asia is becoming wider and that’s why the discussion of the conditions and the outlined tendency in Kazakhstan - European relations, as well as prospects of future development ways of cooperation become more actual and well-timed.

As is well known, the process of European integration is taking place in Europe for last 50 years. And more European countries are being included in this process. In the course of time it becomes a question of making united Europe, which will take a certain political coloration.

Countries of Europe are uniting and other nations from different parts of the globe determine their positions to the united Europe. As time goes by Europe can be consisted out of 35 countries, and on this stage the process of integration will be completed.[3]

Why Europe attract attention of most countries of the world, including Republic of Kazakhstan? It’s all because the Europe – is, first of all, a capacious market, market of consumption, mainly of stuff energy; Europe – is an exceptionally high level of technique and technology; Europe – is an export of capital and investment to the economics of most countries; Europe – also is a high level of living, education and health protection standards. Government of Republic of Kazakhstan is welcoming integration processes, existent in Europe.

Republic of Kazakhstan is attractive for Europe and European Union with its geopolitical location, becoming transport corridor, uniting Europe and Asia by owning natural resources, especially hydrocarbon stuff, mining branch recently. In general Central Asia, including Kazakhstan, appears to be a region which isn’t well-known to the Europe and EU. All this demonstrate that Kazakhstan is interested in making wide and profitable relations with Europe, particularly with EU.

Two-way communication between Kazakhstan and EU gets special place in development. The priority of foreign policy of Kazakhstan is in the political, economic and cultural communications between the republic and countries of Western Europe.

European Union – is the practical implementation of political, economic and cultural integration. The example of European integration model, undoubtedly, can be used by Central Asian countries.

It is important to say, that by this time, there is a two-leveled system of communication between Kazakhstan and European Union as a whole, and with country-members individually, which are mutually complementary to each other, this can be discovered in different agreements and implemented projects.

Agreement of collaboration and partnership (ACP) is an agreement of Republic of Kazakhstan with European communities and with its country-members, in which we can see impressive list of goals and objectives in the sphere of civil collaboration: from trade to intellectual property and corporate regulations; from transport to higher education; from agriculture to struggling with illegality.

Initial period of operation of the ACP – is 10 years. After this mentioned term ACP will be automatically extended, if Kazakhstan or European Union wanted to stop it. But it doesn’t mean that the Agreement wouldn’t be verified at this time. Agreement of collaboration and partnership does not have any certain limits and that’s why it can be developed in all necessary for Kazakhstan and EU ways, according to upcoming events in both Kazakhstan and EU, especially the progress of Kazakhstan heading toward the market economics. Agreement of collaboration and partnership is an important step towards, replacing the Agreement of trade, commercial and economic cooperation between EU and USSR in 1989.

Significance of the Agreement is tied with the range of international legal document, its systematizing character for partnership between Kazakhstan and European Union. This document is incarnated with new ideas of relations between Kazakhstan and EU, with the main reason is being the raise of degree of the mutually beneficial and possessing partnership.

ACP is the agreement, reflective to entire spectrum of interrelation between EU and Kazakhstan, including the sphere of political and economic cooperation, building fundamentals in arranging relations in all kinds of collaborations in civil regions amongst EU and Kazakhstan. The main aim of the Agreement – is rendering Kazakhstan in transitioning to market economics, also making more close relations with the countries of Europe.

Kazakhstan and EU registered officially in 23^rd January, 1995, when side pieces signed the Agreement of collaboration and partnership. Present agreement formed relations of side pieces in political, economic and cultural-humanitarian spheres and became of the biggest achievements of that time, when republic carried out the policy of finding new and firm partners.

This document foresees development of relations based on democratic values, political dialogs and leadership of the law. It establishes political dialog and a system of consultations on European and international problems. In the view of economic collaboration, Agreement became in a way a reference point for gradual development of economic connections. In the context of an Agreement sides made encounters at the minister and department levels repeatedly.

Now connections between Kazakhstan and EU become more dynamical at first in an economic sphere. Both sides interested in active collaboration.

The main range of strategic interests of EU in the region of Central Asia and especially Kazakhstan are:

· Intensification to cooperation in the sphere of power engineering, in order to secure European energy safety.

· Stability in the region of Central Asia and Caspian Sea. Consolidation of democracy in Central Asian countries.

Question of power engineering: Countries of European Union show interest in Caspian oil, particularly when it is expected to be the potential growth of petroleum production in the basin of Caspian Sea and also having a big role of Caspian energy supplies in the world-wide energy supply.

Importance rise of the Caspian Sea for EU is explained by these reasons: first of all, reserves of oil in North Sea are limited.

Secondly, EU tries to diversify sources of importing oil, in order to secure their own energy safety. In this respect immediate problem appears to be the increase of independence of European countries from Arabian oil. Europe and USA are interested in lowering influence of OPEC thanks to strengthening ascendancy of other oil-producing countries, including Russia, Kazakhstan and Caspian Sea countries. Thus, in a document “Persian Gulf, Caspian Sea and Caucasian”, made by German institute of international policy and safety in the beginning of 2001, noted that such political and economic prerequisites, which would make entry into OPEC for Caspian Sea countries unprofitable. In this respect these possibilities gives participation of countries of region in the EU Agreement of energetic charter and their entry to different European structures, like European Council.

To realize interests EU at the Caspian, following things must be done:

· Further realization of projects TRASEKA and INOGATE, which was activated in early 90s. EU is interested not only in oil, but also in gas. Merge of Caspian area with the European gas systems is in prospects. The solution of the problem is particularly European, but not American, that’s why the main task of EU is assistance for development of infrastructure in the region.

· Creation of transport circuit communications at the line East-West, and especially gas system for connecting sources of the region, including Iran, via Turkey with European markets.

· Creation of favorable conditions for European concerns, providing oil delivery to Europe, which oil consumption, is growing much faster than gas consumption.

· Forming of European position regarding to projects of arterial tubing from Caspian region to Europe.[4]

Active economic collaboration of Kazakhstan with the countries of EU allows not only developing economic potential of the republic, but also uses successful economic fusion experience of European countries, which becomes very valuable for the republic, playing the first role in fusion processes within the limits of CIS, EAEC and OCAC.

If the main interests of EU in Central Asia and in Caspian Sea are clear – it’s a guarantee of regional safety and stability, further development of economic collaboration, more active European participation in geopolitical processes in the region along with USA, Russia and China, but instruments for its achieving are extremely limited. For its systematical realization of interests Brussels does not have united strategy for Central Asia, to carry out methodical policy.

The reasons of forming complexity of European strategy in Central Asia, and in Kazakhstan particularly are:

· Low standards of strategic interests and absence of clear outspoken priorities, which is possibly, explained by lack of historic presence in the region and also confirming the fact that Central Asia and Kazakhstan especially weren’t the priority zones for Europe.

· Some difference of European countries in the region and weakness of general foreign policy in the whole. For example, if United Kingdom? France and Italy is orienting its politics on interests of their domestic oil companies, the interests of other European states are accommodated in different areas, or weakly articulated in principle. With expansion of EU the bulk of interests in region is substantially expanding, thus creating situation obstacles for consolidation of European countries policies. This process is complex because presence of complex mechanism for taking decisions in the Union.

· In general, the policy of EC is possible to characterize as a “protostrategy”. This means that eventually for the European Union, excluding several European Countries, has not been formed efficient strategy with regard to both Kazakhstan and region as a whole.

Among different attempts of European countries to develop better clearly articulated strategy towards Central Asia, the case of Germany is possibly better one. Eventually, during period of 1998-2004 years, the Germany was formulating the foundation for future European strategy with regard to Caucasus, Caspian and Central Asia in the way, how the German strategist views it.

So, whatever processes would be emerging in the world, the Europe was, is and will be one of major centers for the world development. Therefore, For Republic of Kazakhstan is very critical to intensify its partnering relationships with the Europe, take all positive from the process of European integration. This is first of all impact all concerned ministries.

Meantime, if the leaders of Central Asia would like to begin integration process on example of Europe, they should promote conditions in the way that the population of Central Asia will know more in specific what are the details of European integration. With this purpose in mind, it could be possible to speak about establishment of special institute of European Union in Central Asia, which will be science-research oriented character and will be promoting closure relationships of Central Asia and Europe. Agreement of partnership and cooperation, signed between Republic of Kazakhstan and European Union should not be of standard character. Contrary, it should reflect specifics of country in Central Asia, laying between Europe and Asia, region reach for mineral resources, especially, energy resources, capacious consuming market and thus attractive for capital investments.