By Abdul Kerimkhanov
Foreign trade of Kazakhstan with the EAEU countries totalled $19.1 billion in 2018, which is 10.1 percent more than in 2017 ($17.1 billion).
The import component in the structure of commodity turnover is 69.2 percent, or $ 13.2 billion. The export of domestic goods and services to the countries of the commonwealth, in turn, is 30.8 percent ($5.9 billion).
In January 2019, the trade turnover between Kazakhstan and the EAEU amounted to $ 1.4 billion.
The growing rates of mutual trade between Kazakhstan and the EAEU member countries are supported by investment activity from regional partners. Only in January-September 2018, the inflow of foreign investments into the national economy from the EAEU amounted to $ 1.2 billion - 30.9 percent more than the same period a year earlier.
At the same growth rate, the result of 2018 could be Foreign Direct Investments (FDI) in the amount of $ 1.5 billion.
In addition to the growth in the volume of investments themselves from the EAEU countries, their share also increases. In January – September 2018, the share of FDI from the EAEU was 7.1 percent, whereas a year earlier it was only 5.9 percent. The increase in the presence of assets of regional partners in the economy of Kazakhstan indicates a growing investor interest in potential industries.
Maintaining the rate of growth of foreign investment in the country will increase production and export potential.
The heads of the member states adopted a Declaration on the further development of integration processes within the EAEU and determined the future vector of the Union’s development on December 6, 2018.
The Eurasian Economic Union also known as the Eurasian Union, is a political and economic union of states located in central and northern Eurasia.
Key areas include maximizing of the EAEU’s single market efficiency and realizing its opportunities for business and consumers by completely eliminating barriers and minimizing exemptions and restrictions for the free movement of goods, services, capital and labor in the EAEU market.
In October 2016, the EAEU and Vietnam launched a free trade zone (FTZ).
On May 17, 2018, a temporary agreement on the establishment of an FTZ with Iran and an Agreement on Trade and Economic Cooperation between the EAEU and China were signed within the Astana Economic Forum.
By 2025, common markets for gas, oil and petroleum products will be formed within the EAEU framework.
Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94
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