Kazakhstan will not impose restrictions on imports of goods from Uzbekistan, the Kazakh Ministry of Trade and Integration said on Tuesday.
According to the Ministry’s analysis mostly, vegetables, fruits, raw materials for factories, cars are being imported from Uzbekistan. Kazakhstan is interested in those.
“Any measures in relation to these goods will have a negative impact, first of all for Kazakhs. Accordingly, today there is no expediency of introducing retaliatory, mirror measures based on the structure of imports from these countries, ”the Ministry of Trade specified.
Reportedly, “mirror measures” - in particular, imposing duties on imports of goods from Uzbekistan - were called for in September 2020. The initiative was explained as a measure to protect local producers who complained about the smuggling of Uzbek goods.
According to the ministry, Uzbekistan adheres to a different position, since there "a number of restrictions were in effect or are still in effect in relation to Kazakhstan."
“Uzbekistan in trade with the CIS countries, including Kazakhstan, applies the rules of origin of goods dating back to 1993. They provide for stricter and sometimes unfulfillable criteria for sufficient processing of goods by Kazakh exporters,” the Ministry of Trade added.
The 2009 rules “list more flexible and usually achievable criteria for sufficient processing of goods”.
Another obstacle is the unequal access of grain and flour to the Uzbek market due to the development of its own processing. Since January 1, 2020, grain supplies to Uzbekistan are not subject to duty, while for flour imports it is 10% (but later released until the end of 2021).
While, Uzbekistan lifted some restrictions, in particular, from January 1, 2021, excise taxes on the import of 73 goods from all countries, including Kazakhstan have been scrapped.
As a result, in January-September 2021, Kazakh exporters supplied 87 goods (wheat, oil products, copper ores, cattle, rolled steel) worth US$ 137 million, which were subject to the excise tax on imports. As a result, there is an increase in the export of excisable goods from Kazakhstan to Uzbekistan by 72%.
In 2020, exports from Kazakhstan to Uzbekistan stood at US$ 2.1 billion, which is 6.9% more than in 2019. And imports fell by 44.8% to US$ 783.1 million. For 11 months of this year, Uzbek exports to Kazakhstan rose to US$ 1.05 billion, and imports to US$ 2.48 billion.
Wheat, crude oil, oil products, semi-finished products from unalloyed steel, cars, flour, unprocessed aluminum, flat rolled products from unalloyed steel, cement are the mainly items imported from Kazakhstan to Uzbekistan.
To Kazakhstan, Uzbekistan exports passenger cars, fruits and vegetables, natural gas, polymers to the neighboring country.
In early December, the businesses of Uzbekistan and Kazakhstan signed deals totaling US$ 5.9 billion. Among them are agreements on organizing the production of pumping and electrical equipment on the territory of the Navoi FEZ and industrial assembly of Chevrolet Nexia cars by small-knot method in Kazakhstan.
