Why approving permanent normal trade relations with Kazakhstan
ASTANA. KAZINFORM What is Jackson-Vanik? The Jackson-Vanik amendment to the Trade Act of 1974 was devised to press the Soviet Union to allow the emigration of Soviet Jews, prisoners of conscience, and victims of religious persecution. With respect to Kazakhstan, Jackson-Vanik has fully accomplished its objective. With the collapse of the Soviet Union two decades ago, Kazakhstan established freedom of emigration for all citizens. For more than two decades, U.S. presidents of both parties have issued annual certifications of Kazakhstan's full compliance with the Jackson-Vanik amendment.
Because no other WTO member has a law similar to Jackson-Vanik, all of Kazakhstan’s trading partners except the United States will immediately benefit when Kazakhstan joins the WTO. If Jackson-Vanik remains applicable to Kazakhstan, the United States will be in violation of WTO rules. Failure to approve PNTR and graduate Kazakhstan from the Jackson-Vanik amendment’s requirements would allow Kazakhstan to discriminate against U.S. companies and the workers they employ and deny them the full benefits of Kazakhstan’s market-opening reforms. Meanwhile, European and Asian companies will be able to build on their already significant head start in tapping the growing Kazakhstani market.
How important is the Kazakhstani market to U.S. companies?
As one of the largest economies in the world outside the WTO, Kazakhstan is a new market of considerable interest to U.S. companies. With more than 17 million consumers, the country’s international trade tops $120 billion annually, and Kazakhstan has attracted more than $200 billion in foreign direct investment during the past decade. Kazakhstan’s top trading partner is the European Union, which accounts for more than 40% of its exports and imports, but a number of major U.S. companies have made substantial investments in the country. According to the State Department, “the United States is a leading source of investment capital with around $31.4 billion invested in Kazakhstan during the period 2005-2013.” Of note, the American Chamber of Commerce in Kazakhstan represents nearly 200 U.S., multinational, and local companies in 30 industry sectors. For many of these foreign investors, Kazakhstan has proven to be a lucrative market for high-quality goods and services, and opportunities are expected to expand after Kazakhstan finalizes its accession to the WTO.
Until Congress grants Kazakhstan PNTR status, American workers, farmers, and companies won’t benefit from the market-opening reforms Kazakhstan is undertaking as it joins the WTO.
N.B. Kazakhstan completed its accession negotiations and the Working Party adopted the accession package ad referendum at the 20th and final meeting of the Working Party on 22 June 2015 . The General Council approved the accession on 27 July 2015. On 30 November 2015, the WTO welcomed Kazakhstan as its 162nd Member (WTO.)
The article was taken from the website of the Kazakhstan Embassy in the U.S. https://www.kazakhembus.com/