It is still difficult for American businesses to understand how to start trading with Kazakhstan

On April 2, the Trump administration published a list of countries subject to new trade tariffs, which included Kazakhstan. Samat Umirzakov, President of the Global New York Chamber of Commerce, spoke with Kazinform News Agency correspondent about how this could affect trade relations between the two countries.

Samat Umirzakov, President of the Global New York Chamber of Commerce
Photo credit: Rustem Kozhybaev / Kazinform

– Tell us about the Global New York Chamber of Commerce. Which companies cooperate with Kazakhstan?

– We are a non-profit organization with 55 large member companies. Our work focuses on two main areas: helping American companies enter international markets to export their goods and services, and assisting foreign firms in setting up business in the United States, especially in New York State.
We aim to support Kazakhstani companies as well. Together with the Consulate General of the Republic of Kazakhstan in New York, we are providing advisory services to anyone in need. Currently, UMI Capital Holding is considering importing consumer goods from Kazakhstan and establishing a wholesale hub for Kazakh products in the United States.

– What delivery routes are being considered, and what is the role of the Middle Corridor?

– One company is planning to purchase the first batch of Kazakh flour for the U.S. market, about 50 tons. The Trans-Caspian International Transport Route, also known as the Middle Corridor, has been chosen as the delivery route. The flour will be loaded into two 40-foot containers in Almaty, then transported by rail to the port of Aktau, shipped across the Caspian Sea to the port of Baku in Azerbaijan, then to the port of Poti in Georgia, and from there to New York. The entire journey will take about 60 days.
An alternative route via rail through Russia to the Latvian port of Riga was also considered. However, despite similar delivery time and costs, this route was rejected due to lack of oversight during the transfer of cargo from rail to sea containers in Latvia, while in Almaty the goods are loaded directly into containers bound for the U.S.

– How could Trump's 27% tariffs affect U.S.–Kazakhstan trade?

– At the moment, the 27% tariff will not significantly impact businesses, because trade volumes in consumer goods between the U.S. and Kazakhstan remain low. Shipments are irregular — about one to two containers per quarter — making it difficult to estimate potential losses from the tariff policy.
Moreover, Kazakhstani goods don’t directly compete with other producers; they occupy a specific niche and remain in demand among expatriates and CIS nationals. For example, people are still willing to buy “Kazakhstan chocolate” or “Rahat” candies even with a 27% markup.

However, uncertainty surrounding future U.S. tariffs could deter American companies from expanding trade with Kazakhstan in non-resource sectors.
Currently, Kazakhstani products entering the U.S. face a 10% tariff. American companies usually earn a net profit of 10–20% on trade with Kazakhstan, and even less in the textile sector — around 5% — due to competition from Turkey, Egypt, and Bangladesh. A tariff increase to 27% would significantly erode profit margins and render trade unviable.
Although the tariff implementation has been suspended for 90 days, business plans are typically developed for 5 to 10 years. We need to reconsider how to approach trade.
At least five other American companies are also reassessing their plans to conduct non-resource-sector business with Kazakhstan.

– What difficulties do you face in delivering goods from Kazakhstan to the U.S.?

– U.S. tariffs are not the biggest problem. The main challenge is the lack of standardized tariff rates along the Trans-Caspian route. For example, the cost of shipping one container from Kazakhstan to the U.S. can fluctuate between $6,000 and $15,000 within a matter of weeks. Such volatility makes long-term business planning impossible.
In my view, the transportation market needs to be stabilized. One week a container might cost $10,000, the next $6,000, or even $15,000. Even today, I can't give you an exact cost — there is no pricing stability for businesses to rely on.
Another issue is at the port of Aktau, where loading times are unclear and can take from one to three weeks without explanation.
The final major issue is the large number of intermediaries involved and the lack of direct access to global shipping company MSC Central Asia LLP in Almaty, which drives up costs.
These logistical challenges reduce Kazakhstan’s attractiveness for American businesses.

– What steps should the two countries take to strengthen business ties?

– First, eliminate the obstacles I mentioned. Second, I hope both countries can negotiate mutually acceptable tariffs. Third, Kazakhstan should develop a clear economic and investment policy for foreign companies, similar to those in the UAE or Jamaica.
Foreign entrepreneurs need clear, accessible information about the documentation required to start a business in Kazakhstan — what to submit, where to send it, how long it will take, what it will cost, and who to contact. At the moment, it is very difficult for a typical American company to navigate how to begin trading with Kazakhstan.

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