Azernews.Az

By Vusala Abbasova

IT and financial services market in Kazakhstan is expected to gain a chance for foreign investments after the country's full accession to the World Trade Organization (WTO) on December 15.

Prime Minister Karim Massimov said that foreign companies and banks will be able to open their representations in Kazakhstan within upcoming five years of the counrtry's entry to WTO.

Foreign companies desiring to enter the market will have to fulfill a number of conditions in this regard, Minister for Economic Integration, Zhanar Aitzhanova.stressed.

She said that foreign banks can open their direct branches in Kazakhstan with a capitalization of $20 billion, while insurance companies will be required to have a stock of $5 billion.

Kazakhstan carried out a range of measures to become a full member of the WTO. The country constructed some 73 laboratories for harmonizing sanitary and phytosanitary standards, Aitzhanova said.

In addition, Kazakhstan amended as many as 60 laws over the last 10 years to adapt its legislation to the terms of WTO accession.

The minister also mentioned that the country has also modified 10 agreements signed in this period to reduce administrative barriers for the foreign trade transactions.

Kazakhstan will receive an official recognition as a member of the WTO on the eve of the 10th World Trade Organisation Ministerial Conference, which will be held in Nairobi, Kenya on December 5-18.

Astana also expects the European Union to grant Kazakhstan the status of country with market economy, Deputy Foreign Minister Alexei Volkov said.

“Facilitation of visa regime for us will become a priority to develop cooperation with the EU after WTO membership,” he said, noting is yet to be solved.

Volkov noted that Kazakhstan abolished visa requirement for citizens of ten countries, which showed the highest investment activity in the country in the last year.

The list includes five largest economies of the European Union -- the United Kingdom, Germany, France, Italy and Netherlands.

In addition, the list has been extended for another ten countries, including five EU countries: Spain, Belgium, Hungary, Sweden, Finland, he added.

Considering that more than 100,000 Kazakh citizens visit Europe without violating the migration regime per annum, Kazakhstan with 17-million population and high living standard has no threat to the EU, Volkov believes.

In addition, Kazakhstan is currently preparing to adopt an action plan on bringing norms and practices of migration and border management to the EU standards.

Kazakhstan hopes to get the status of permanent normal trade relations (PNTR) from the U.S. and achieve the cancellation of the Jackson–Vanik amendment.

The Jackson–Vanik amendment to the Trade Act of 1974 is a 1974 provision in United States federal law intended to affect U.S. trade relations with countries with non-market economies that restrict freedom of emigration and other human rights. It was proposed by congressmen Henry Jackson and Charles Vanik.

This amendment primarily affected the USSR and consequently, the post-Soviet countries. The U.S. repealed this amendment for Russia in 2012.

"In general, it is time to discuss the so-called post-WTO period to strengthen trade relations by implementing new joint investment projects,” Volkov said.

---

Follow us on Twitter @AzerNewsAz