UNECE Committee on Trade 5th Session

Joint ITC-UNECE trade-needs-assessment study on Kazakhstan: major findings and key recommendations

Regulatory and procedural barriers to trade(based on the enterprise survey on NTMs)

By: Olga Solleder-Skorobogatova, ITCDate: 18 June 2012, Geneva

Plan

• ITC enterprise surveys on non-tariff measures (NTMs) and their implementation in Kazakhstan

• Preliminary survey results and their comparison to the results in other countries

• Recommendations

Country coverage of the NTM surveys

ITC NTM programme

Global methodology

…based on large-scale company level surveys

…representative by sector and company size

…adjusted to country-specific requirements

• Identify trade impediments faced by companies on product and partner country level.

• Enable companies to voice their concerns and needs regarding the identified problems and create dialogue among national stakeholders.

• Reinforce country capacity: survey and analysis implemented in collaboration with local specialists, after intensive training.

Project process

Country request

Stakeholder workshop - initiation

Training, survey of

enterprises

Analysis of the results; draft report

Stakeholder workshop - validation

Apr 2011 Nov 2011 Jan 2012 Sep 2012 Dec 2012

Kazakhstan: timeline

Survey methodology Kazakhstan: current coverage

Business register

Phone screening

In-depth face-to-face interviews

NTM cases and procedural

obstacles

800 companies

243 companies

28 companies

45 cases

…regulatory barriers in partner countries:

…regulatory barriers in Kazakhstan:

…regulatory and procedural barriers in transit countries:

… procedural barriers and problems with business environment at home and abroad:

“Uzbekistan introduced a new regulation requiring adding the details of Certificate of Origin into invoices, which should be done within one day. Before it was possible to have a single certificate for the entire shipment, currently it is necessary to do this for every part.”

“Kazakhstan Government Resolution about temporary prohibition to export sunflower oil due to the domestic deficit is an issue for our company.”

“While exporting beverages from Kazakhstan to partner country, Tajikistan, cargo is inspected in the transit country, Uzbekistan. The cargo is opened and some products are getting lost.” “Railroad transport: Insufficient rolling stock.”

Exporting and importing companies report…

Survey coverage: Companies

48%

21%

31%

Direction of trade (n=243)

1. Export2. Import3. Export and Import

52%

20%

28%

Company size (n=243)

SmallMediumLarge

Survey coverage: Sectors

14%

39%

1%1%

13%2%

16%

8%

2% 2% 4%

Export sectors

01. Fresh Food02. Processed Food03. Wood Products04. Textiles05. Chemical06. Leather Products07. Basic manu-factures08. Non-elec-tronic machinery

6%

8% 4%

27%

17%

17%

2%5%4%

2% 8% 1%

Import sectors

01. Fresh Food02. Processed Food03. Wood Products05. Chemical07. Basic manufactures08. Non-electronic machinery09. IT & Consumer elec-tronics10. Electronic Com-ponents11. Transport equipment12. Clothing

International comparison

Egypt

Jamaic

aKen

ya

Madag

asca

r

Mauriti

us

Morocc

o

Paragu

ayPeru

Rwanda

Urugua

y

Kazak

sthan

0%20%40%60%80%

43.8% 49.4%

75.4% 72.1%

44.0%56.5% 63.3%

50.3%

68.3% 65.3%

23.5%

Share of affected exporting companies: agriculture

Egypt

Jamaic

aKen

ya

Madag

asca

r

Mauriti

us

Morocc

o

Paragu

ayPeru

Rwanda

Urugua

y

Kazak

sthan

0%20%40%60%80%

34.3% 33.1%

74.3%63.8%

27.7% 30.7%

73.0%

39.6%

79.4%

49.5%

10.7%

Share of affected exporting companies: Manufacturing

Small companies are more affected in other countries. In Kazakhstan?

Small

Medium

Large

Total

0% 20% 40% 60% 80% 100%

14

2

5

21

30

21

31

82

Importing companies reporting obstacles

1. Yes 2. No

Small

Medium

Large

Total

0% 20% 40% 60% 80% 100%

10

5

7

22

37

31

39

107

Exporting companies reporting obstacles

1. Yes 2. No

Does Customs Union work?

Importing partner country Share in total export (2009)

No. of surveyed companies that export to this country

No. of surveyed companies that reported NTMs applied by this country

Share of affected companies among those exporting to this country

- Belarus 0.5% 2 0  0%

- Russian Federation 16.1% 10 1 10%

Customs Union average 16.6% 12 1 8%

World average   17 14 82%

Most reported regulatory issues

Partner countries on exports from Kazakhstan - Inspections- Quality control measures- Anticompetitive measures

Kazakhstan on imports- Charges and taxes- Conformity assessment

Kazakhstan on exports- Export certification- Export prohibition and licensing

Problems with business environment

Top issues in Kazakhstan- Limited transportation infrastructure- Time delays- Lack of human resources in agencies involved in export and import- Lack of access to information

Top issues in partner and transit countries- Time delays- Corruption- Low security level for persons and goods- Road blocks

• Regulatory barriers in partner countries:

• Procedural barriers in partner/transit countries:

• Regulatory barriers in Kazakhstan:

• Procedural barries in Kazakhstan:

Potential response to most reported issues:

• Addressing transit issues

• Enforcing existing agreements

• More predictable and less stringent regulation of exports, e.g. reduced number of certificates

• Regularising customs valuation for imports

• Removing red tape, especially intentional time delays

• Better railroad infrastructure

Preliminary reccommendations

For questions or comments please contact

skorobogatova@intracen.org

Non-tariff measures: ntm@intracen.org

International Trade Centre (ITC)Palais des Nations

CH-1211 Geneva 10, Switzerland

Fax: +41 (0)22 730 0577

Thank you!