Kazakhstan to ratify OIC agreement with reservations

"The Republic of Kazakhstan became a full-fledged OIC member in 1995. The membership in the Organisation has let our country build relationships with the OIC member states and be actively involved in political and economic processes in the Muslim World. Since 1977 the General Agreement for economic, technical and commercial cooperation among the Member States of the Organisation of Islamic Cooperation (hereinafter referred to as the General Agreement) has been the main framework document of OIC regulating economic cooperation between the member countries. Joining the Agreement will boost development of closer partnership relations with Islamic countries, intensify cooperation with Islamic financial and economic institutions", Suleimenov said during his presentation of the Draft Law "On Ratification of the General Agreement for Economic, Technical and Commercial Cooperation among the Member States of the Organisation of Islamic Cooperation".

The minister explained that the General Agreement has been signed by Kazakhstan with 2 reservations and 1 statement.

In particular, the first reservation is made to Clause 6 regarding preferences in involvement of expatriate workforce from OIC member states. According to the reservation, involving expatriate workforce Kazakhstan assumes no liability to provide any country with favourable conditions.

The second one refers to Clause 8 about granting preferential trade regime to OIC countries. As you know, Kazakhstan is a member of the Eurasian Economic Union and it pursues a common commercial policy with respect to the third countries. The Union also actively participates in concluding free trade agreements with Israel, Iran, India, Egypt and Singapore. In 2016 it was Vietnam that signed the first free trade agreement within the framework of the Eurasian Economic Union.

Together with 8 states of the Commonwealth of Independent States, Kazakhstan is a party to the Free Trade Zone Agreement that entails duty-free trade treatment. Therefore, this reservation was made so that to protect the economic interests of Kazakhstan.

Suleimenov also explained the statement to the General Agreement. Kazakh Government stated that it would execute the General Agreement provisions which conform to the provisions of Kazakhstan Constitution. This is because the text of the agreement uses the term ‘Islamic state', whereas Clause 1 of the Constitution defines Kazakhstan as a democratic, secular, law-governed and social state. The General Agreement was signed by the Republic of Kazakhstan in Istanbul on November 25, 2015. 

According to the minister, Kazakhstan intends to strengthen collaboration in trade, investments, science and technologies via the General Agreement.

The share of trade with OIC members in Kazakhstan's total turnover of commodities is growing progressively. In 2012 it was 7.2%, while in 2016 the share of OIC countries equaled to 10.3%.

In addition, coming into force the General Agreement will additionally promote the initiatives of Kazakh President Nursultan Nazarbayev's to establish a new OIC institution in Astana - the Islamic Organization for Food Security. This agency gives Kazakhstan tangible benefits enlarging the food export potential as it will let our country export at least 1 million tonnes of wheat a year to IOFS countries. Besides, Kazakhstan will get great opportunities to develop agriculture by raising funds from Islamic Development Bank.