Amirzhan Shaltykov
Doctor of Political Sciences, Professor
Republic of Kazakhstan,
Almaty
Kazakhstan's
accession to the WTO - the dictates of time
In his Annual message to
the people of Kazakhstan "Kazakhstan in the new world", on February 28, 2007, the President of the
Republic of Kazakhstan , Nursultan Nazarbayev marked as the seventh important deal among identified 30
critical ones in domestic and foreign policy, “to put Kazakhstan’s accession to
WTO on favorable to Kazakhstan conditions”. In this regard, he said: «The
competitive position of Kazakhstan strengthening in the global economy will be
largely determined by its entry into the World Trade Organization. This problem
should be solved consistently in several years and is close to completion
"(1).
With independence, Kazakhstan
proclaimed and consistently implemented the policy of forming open civil
society and democratic rule of law with market economy; and as a result it was
involved in the processes of globalization. This circumstance has received its
most intensive development when our country out on the world stage as a new
independent and full-fledged subject of international relations. In this
regard, Kazakhstan’s involving into the world community and its gradual integration
into the world economy should be considered as fundamental to its entry into
the WTO.
Since 1996 Kazakhstan is preparing to join
the World Trade Organization. Accession to it is inevitable for countries
seeking to integrate into the world economy. The WTO is the most important
international institution that develops the rules and methods of tariff and
non-tariff regulation of foreign economic activity.
It can be assumed that the accession of
Kazakhstan to the WTO defines it the following advantages: first of all, the
principle of most favored nation treatment extends to Kazakhstan. As a result,
our state will be able to take advantage of constantly declining rates of other
states. Domestic production is out of the discriminatory measures; Kazakhstan
protects its interests from inappropriate measures of other countries in
accordance with WTO rules and with the structures of the organization.
Kazakhstan should substantially
liberalize its external trade regime applying the principles of free trading with
the countries - members of the WTO, when enters WTO. Accession to the WTO
imposes on the state set serious commitments, which may not always conform to the
interests of regional relations and domestic production. Acceding countries should
be ready to comply with all obligations under the WTO Agreement. Several countries,
especially developing ones, need to take on greater obligations than developed
countries. Developing countries are provided only the right to have a limited
number of exemptions from certain WTO principles such order applies to the CIS
countries. The list of exceptions provide longer time to perform certain
obligations and permission temporarily maintain import restrictions for balance
of payments and the delay of tariff concessions. This indicates the complex and
difficultly of choices facing the CIS with another fledgling market economy,
low competitiveness of their goods and services in foreign markets.
However, considering the increasing
role of the World Trade Organization in the expansion and liberalization of
world trade, implementing global representation of the world, the necessity to
access to the WTO is relevant to all countries.
Despite all negative moments, still there
is no alternative to entry into the WTO. Otherwise, you can just stay behind
the world economy; to become “a poor relative” of the family members of the
WTO, the family with 153 countries-members. “A poor relative” could be offended
with no difficulty, even if he has the status of a market economy.
Therefore, the entry into the WTO is
urgent need for Kazakhstan because it is a country with a relatively small
domestic market. In these circumstances, the country must look for sources of
economic growth in promoting their goods and services to foreign markets, which
involves the development of a multilateral foreign trade, including in the
framework of the WTO. Kazakhstan's membership in this organization can be
regarded as the main factor for improving the competitiveness of Kazakhstan's
industrial and agricultural production, the development of domestic business,
increase of investments and stabilize economic growth.
At present, almost all the
countries of the WTO are trade partners of Kazakhstan. It is natural, that
Kazakhstan should have to seek to resolve their trade relations with these
countries on acceptable and favorable terms. Each of these countries may at any
time begin an anti-dumping investigation procedure against any goods imported
from Kazakhstan. Kazakhstan is not the first encounters with the above
mentioned investigations and measures against Kazakhstan's exports of steel,
non-ferrous metal products, ferrosilicon, ferrochrome, titanium sponge, highly
enriched uranium, and others from the U.S., the EU, India, Mexico, Brazil,
Colombia and Venezuela.
Of course, accession to the WTO will allow
Kazakhstan to receive more favorable terms of trade with the absolute majority
of its trading partners, and all WTO members will have to be extended to
Kazakhstan effect MFN, i.e. market access, on equal terms.
It is obvious, that Kazakhstan’ position is
quite unambiguous concerning the issue of accession to the WTO. It can be
assumed that the entry into the WTO is only a matter of time. As the Chairman
of the Board of Kazakhstan’ Association of Customs Brokers G. Shestakov pointed
out: "Joining the WTO may become the salvation of Kazakhstan. There are a
number of requirements that are mandatory. One of the requirements - is free
trade. In countries that are part of the WTO, tariffs are in the range of 4 -
8%. Prior to the Customs Union, we actually, by liberal trade, took place in
the organization ... The fact that we would lose when joining the WTO, much
less than we lose now when joining the Customs Union. If we consider the WTO,
we will save the government and a local entrepreneur and the consumer. The
government will be saved, because the alliance between Russia, Kazakhstan and
Belarus will have to show their best side ... In the WTO will be competition
between governments, the Customs Union - no. In WTO frames, of course, other
conditions are built fro the entrepreneurs. For raw materials would be zero
customs White-headed Duck. Either way, it will stimulate the manufacturer. And
for the consumer goods would be cheaper "(2).
Of course, in these circumstances, it would be
better to consider not even a problem of joining the WTO, but the terms how to
enter and how to provide a transition period to adapt to the requirements of
the organization. Of course, for Kazakhstan suitable conditions should be
worked out basing on the analysis of a similar experience of other countries,
taking into account the realities of the national interests of Kazakhstan's
economy. We believe that for Kazakhstan the best model are the procedures and
conditions for accession to the WTO of its nearest neighbors - China and
Kyrgyzstan, as well as other countries of the CIS. It is important not so much
taken over the rules of their conduct, since the case of each country's
specific and individual, as maximum consideration of the positive and avoid
negative experiences.
We can say that the process of accession
to the WTO is fundamental and irreversible. As a result, Kazakhstan, as already
mentioned, can get in a relationship with all members of the WTO MFN,
Kazakhstan will have a more favorable and transit routes for their goods; the
accession of Kazakhstan to the WTO is important in terms of attracting
investment, especially in the manufacturing industry and in the development of
high-tech industries, the accession of Kazakhstan to the WTO will lead to a
significant transformation of the national economy, etc.
Overall, the process of Kazakhstan's accession to the
WTO needs a lot of works in development and adoption of effective government
measures, aimed to align most vulnerable sectors of the national economy to
future participate in the organization; agriculture brunches’ industrialization,
development of manufacturing sector, acceleration of modernization and
diversification of the economy as a whole.
References:
1. Annual Message of President of the Republic of Kazakhstan Nursultan
Nazarbayev to the people of Kazakhstan "New Kazakhstan in a New
World", Kazakhstanskaya Pravda, February 28, 2007.
2. G. Shestakov. "Joining the WTO may be the salvation of
Kazakhstan", "Kursiv”, ¹ 18 (342), May 13, 2010.
3. Sozialphilosphische, politische und rechtiche Aspekte der Modernisierrung Kasachstans .
Verlag Dr. Koster, Berlin, 2012