Commercial relations between Kazakhstan and the European union: analysis and perspectives

This article presents the trade policy of the EU in the light of the economic partnership with Kazakhstan, given that the Republic of Kazakhstan is the second largest trading partner after the Russian Federation. 

 European direction in the foreign economic policy of Republic of Kazakhstan is one of major in the international system and economic potential of European Union [1].

Actuality of mutual relations is reflected in the message from the President of the Republic of Kazakhstan- leader of the nation N. Nazarbaev the people of Kazakhstan "Strategy " Kazakhstan -2050": a new political course of the established state" in which it is proposed to develop a special program "Global infrastructural integration", allowing to create joint ventures in the region and worldwide Asia, America and Europe. Everything must be subordinated to the key task promoting our exports to the world markets, where long-term demand will be on our products and services" [2, c.15]. Also, the timeliness and importance of economic collaboration is extended between the European Union and Kazakhstan [3, c.128].

On January 25, 1995 signifcant consensus emerged signing of bilateral documents between President Nursultan Nazarbayev and President of the EU Council

1. Partnership and Cooperation

Agreement between the-European Communities and their member states, on the one hand, and the Republic of Kazakhstan, on the other hand came into force on July 1, 1999. This significant document establishes the legal framework for multilateral political, economic, cultural and humanitarian partnership with the world's largest economic integration Union.

 Signing of these agreements is one of the most important achievements in political, economical life of Kazakhstan [4, c.544].According to the management of the EU institutions, the Partnership Agreement is an important tool for the future economic and social progress in Kazakhstan. In general, the European Union is the second largest trading partner of Kazakhstan after the Russian Federation. But Kazakhstan is identified as one of the major trading partners of the EU in Central Asia [5, p.68].

Bilateral trade is stipulated by the freedom of the market economy of Kazakhstan. So, on October, 9, 2000 European Council brought in addition of European Union(№ 384/96) on antidumping to enhance and deepen our relations [6, c.200], i.e. European Union has officially recognized the Republic as the country with market economy. It gives an opportunity to the exporters from Kazakhstan to prove that they operate not in state aid but a market system Now anti-dumping investigations are based on situation prevailing in Kazakhstan. In addition to the decision European Council revised the criteria for an individual approach to local companies on the issue of anti-dumping.

The price produced by national producers and exporters have based on these production costs and prices. In the absence of such evidence, the calculation made on the basis of costs and prices prevailing in comparable third country with a market economy [6, c.87].

The European Union is the main trading partner of Kazakhstan, which accounts for 47% of foreign trade of the country (according to the statistics in 2010). The trade relations of ЕС and Kazakhstan develop vigorously, moreover foreign trade turnover of Kazakhstan with some countries and regions are raised.

EU imports as usual represented by products of the energy sector, accounting for more than 89% in 2009.The main export products are industrial equipment, transportation, and chemical products. The main focus of export products to European oil and gas companies, represented in Kazakhstan [7].

Kazakhstan viewed the European Union as an important partner in the field of promoting economic development, taking into account the regional and country projects . European Union called for the accession of Kazakhstan to the WTO countries, which opens the door to large foreign investors and banks[8].

Thus, the European Union is the main trading partner of Kazakhstan. In 2011, the trade turnover between Kazakhstan and the EU reached 50 billion U.S. dollars, accounting for more than forty percent of the country's external trade said in his speech, President Nazarbayev at the ceremony of acceptance of credentials by the new head of the EU Aurelia Boucher.

According to media reports , in the first decade of 2010 year the trade turnover of Kazakhstan with the EU amounted to more than $ 38 billion, which is 31.9% more than in 2009 (28.8 billion dollars). [9]

The legal aspects regulating trade relations between the EU and Kazakhstan are investigated in relation to the three aspects of basic documents. The first aspect

Partnership and Cooperation Agreement between (PCA) Kazakhstan and EU. The second unit sectoral agreement adopted on the basis of the PCA and developing its provisions in the different spheres of cooperation of Kazakhstan and ЕС. . The third aspect includes a "road map" on four common spaces.  

At the moment relations between Kazakhstan and the EU has already achieved some positive results. So, there are several ways:

• Mutual trade;
• Investment activities;
• Cooperation in the oil and gas and energy sector;
• Cooperation in the field of transport.

In the structure of Kazakhstan exports the EU individual product groups have a dominant position.

• Mineral fuels;
• Crude petroleum and petroleum products;
• Ferrous and non-ferrous metals.

They are representing about 90% of domestic exports to the EU.However, there has seen a distinct tendency to a decline in the goods for the last few years. European imports in Kazakhstan accounts to 24% of total imports. In a commodity service, EU is dominated by machinery, equipment, vehicles, chemical products and industry, as well as metal products [10].

Overall, the picture of the market develops as follows, there is an increase in the level of imports from the EU than in the EU exported goods.

An analysis of exports and imports shows that the structure of imports, in contrast to exports, there is no predominance of individual commodity groups. It is more diversified. At the same time, increasing the share of food products, vehicles, chemicals and industrial products. There is an unfortunate trend of imports over exports.[11]

The position of Kazakhstan's exports in EU market will have a direction to the recession because of the moderate growth rate of the European economy . European manufacturers of raw materials are led to lower growth [11].

There is also a tendency to tighten customs measures to protect domestic market from imports during the recession.

Thus, in order to avoid economic problems with the trading partner EU, it is necessary to improve the system of measures to create a favorable investment market. [12]. It is extremely important for further fruitful partnerships to create such conditions that will increase the attractiveness of the European investors, partners [11].

EU is an example of the most profound economic integration, and a major trading partner of Kazakhstan. The functioning of the common customs in the territory of EU has created a common market. The significance of this is that the free movement of goods constitutes one of the four fundamental freedoms of EC law, the others being the free movement of persons, services and capital and persons, as well as the formation of the EU's economic and monetary union [13].With the signing of the Treaty of Lisbon on the reform of 2007 begins a new stage in the evolution of EC law.

Implementation of trade relations between Kazakhstan and EU implies not only the existence of a specialized legal regulation and the formation of the necessary structures and institutions, but the development of inter-regional relations [14] whose participants are the subjects of RK.

The timely use of measures to protect the domestic market in Kazakhstan is updated with the pace of economic integration of Kazakhstan into theinternational trading system. It leads to a partial opening of the domestic market to foreign goods. The abolition of the action on import customs duties from CIS countries is a striking example of it. As a result of creating free trade regime in the application of customs duties between Kazakhstan and the CIS countries, Kazakhstan market are supplied various products from these countries at such prices and in such a quantity that the national companies producing the same products were unable to compete with imports from the CIS and had to bear the loss, reduce sales of its own market, freeze program of investment, establish production of other, more competitive products.

Thus, that Kazakhstan should as far as possible to participate actively in all new EU initiatives positively influencing on the political and economic growth of Kazakhstan 

Reference: 

1. Liang E.E. Researcher European Union: Prospects for Economic Development // Department geoglobalistics and economic security of the President of the Republic of Kazakhstan/Electronic resource: http://www.kisi.kz
2. Message from the President of the Republic of Kazakhstan Leader of the Nation Nursultan Nazarbayev to the people of Kazakhstan "Strategy" Kazakhstan-2050 ": a new policy establishedstate" // Official site of the President of the Republic of Kazakhstan // Electronic resource: http://www.akorda.kz/
3. Nazarbayev N.A. On the threshold of the XXI century. Almaty: Oner, 1996. 288S.
4. Nazarbayev N.A. Five years of independence. - Almaty: Kazakhstan, 1996. 624p.
5. Tok ayev K.K. Foreign Policy: Time reflection, time for action. // Kazakhstan and the world community. 1995, № 2.
6. Tokaev K.K. Foreign policy of Kazakhstan in the context of globalization. Almaty, JSC "SAK", 2000.584p.
7. Trade and economic relations // Electronic resource: http://eeas.europa.eu/ delegations/kaz akhstan/eu_kazakhstan/trade_relatio n/index ru.htm 
8. Tokaev K.K. Kazakhstan European Union: cooperative working relations // Kazakhstan and the European Union. The collection of documents and materials. Almaty, 1997.
9. Trade relations between Kazakhstan and the EU // Electronic resource: http://eeas.europa.eu/delegations/kaz akhstan/eu_kazakhstan/
10. Trade relations of the Republic of Kazakhstan and the European Union // Electronic resource: http:// Eurostat.ru
11. European Union // Electronic resource: http://turboreferat.ru/geopolitics/evro pejskij-sojuz/171796-859913-html
12. Kazakh Secretary of State received the head of the EU Delegation // Electronic resource: http//articles.gazeta.kz/art.asp?aid=3 79664
13. Artamonov O.F. Dissertation "Legal aspects of foreign economic relations of the European Communities and the contractuallegal regulation of trade and economic relations with the Russian Federation" // Electronic resource:
14. Dudarev M.M. Abstract of the thesis "Legal basis of trade relations with the European Union, the Russian Federation and the problems of the Kaliningrad region" // Electronic resource.