Kazakhstan, after 19 years, has completed negotiations on conditions of Kazakhstan's accession to the World Trade Organization

Does the membership in the global trade club open new opportunities for Kazakhstani business? What pros and cons can be expected from WTO accession?

As noted the Deputy Director of the Department of Economic Integration of the National Chamber of Entrepreneurs of Kazakhstan "Atameken" Askar Kysykov, in the course of preparation of the Treaty on the Eurasian Economic Union, all contractual and legal base was brought into conformity with WTO rules and principles.

Currently, three of the five countries participating in the EAEU are WTO members: Armenia, Russia and Kyrgyzstan.

"Initially, there was an agreement that WTO obligations are in priority. In this regard, for example, currently the Uniform Customs Tariff is being reviewed in accordance with Russia's obligations, primarily, of course, downside. That is Kazakhstani business is working partially by the rules of WTO.

If we talk about specific pros and cons, currently business is still unaware of specific list of tariff concessions and specific commitments of Kazakhstan to the WTO ", - said Askar Kysykov.

According to him, in June-July NCE plans to hold a meeting with the Minister for Economic Integration Zhanar Aitzhanova, during which will be discussed conditions under which Kazakhstan will enter WTO.

The representative of NCE also noted that any document on Kazakhstan's WTO accession, have a status of an international treaty and would be subject to ratification by Parliament. Consequently, the Protocol on the accession of the Republic of Kazakhstan to the WTO will be sent to the NPP Kazakhstan "Atameken" for approval. "Of course, the position of business will be taken into account", - said Askar Kysykov.

"In society, of course, there is a certain pessimism about the upcoming accession to WTO. However, the situation surrounding the accession to WTO should not be dramatized. Many of the risks that media writes about are exaggerated ", - said the deputy director of the Department of NCE RK "Atameken ".

Askar Kysykov also noted that the subject of the abolition of local content will be seriously considered.

"Within the framework of WTO and EAEU, Kazakhstan will have a transitional period: local content requirements in the subsoil use contracts, concluded before 1 January 2015, will be valid until 2023. We have repeatedly stated that in times of crisis the implementation of the local content policy is a key instrument to support the domestic business ", - he explained.

According to the Chamber, the liberalization of foreign trade regime, in particular, the reduction of customs duties, may adversely affect the development of a number of sensitive sectors, such as manufacturing and agriculture.

"But here it is necessary to understand that WTO rules do not exclude the possibility of protecting the domestic market. In this aspect, if to compare it with the Eurasian Economic Union, WTO proposes better tools to protect the domestic market: such measures, which are called safeguards. Unfortunately, this branch of legislation in the EAEC is virtually absent", - said Askar Kysykov.

He noted that if the Government will be working out adequate measures of support to protect sensitive sectors of the economy, then the business will learn how to benefit from participation in WTO.

"We must understand that the barriers for our exporters in many markets will decline. Today, even in the framework of the EAEU, our trading partners in every possible way imit access to their markets for Kazakh goods. Within the framework of WTO, we will be able to challenge such actions: we will have clear and understandable rules of foreign trade. It's no secret that WTO is a very efficient mechanism for resolving trade disputes. In general, everyone understands that Kazakhstan's accession to WTO will benefit consumers. This also applicable to business, which purchases raw materials and components abroad", - summed up the representative of NCE "Atameken ".

Talking about the significance of Kazakhstan accession to the WTO which will affect its development, Askar Kysykov reminded that Kazakhstan has few years of experience being a part of the Customs Union and the Eurasian Economic Union.

"For a country with no direct access to the sea, to integrate into the international trading market is an objective necessity. Therefore, the entry to WTO is a necessary step in improving the competitiveness of domestic production. However, given the unique business climate, WTO membership will be an additional advantage for investment in Kazakhstan. I think Kazakhstan has set a record in terms of duration of negotiations on accession to WTO. And we hope that the agreed terms of accession of the Republic to WTO will allow us to realize our export and investment opportunities without affecting the Kazakhstani business ", - concluded the deputy director of the Department of NCE RK "Atameken" Askar Kysykov.