In August 14 a delegation from the USA led by the Assistant U.S. Trade Representative for South and Central Asian Affairs, Mark Linscott, and the Trade Representative for Trade Policy and Economics, Edward Gresser, arrived in Astana. As part of the meeting, the parties discussed the possibility for participation of Kazakhstan's business in the US programme - the Generalized System of Preferences (GSP).
At the moment, about 2 thousand Kazakhstan's manufacturers continuously export their products. As part of the stat programme GSP, mainly such products as ferrochrome, ferrosilicon and other by-products are exported. But, we are interested in increasing exports of other products. There are certain types of agricultural products that can fall under this programme. It will also be possible to sell travel bags, accessories, jewelry. For our Kazakhstan's companies, it is a very attractive offer," said Chairman of the Board of the Chamber of Commerce of Kazakhstan Ayan Yerenov.
According to him, around 300 million dollars of exports were observed in the past year.
A keen interest of both the US business in the interest of Kazakhstan's economy, that of international partners is observed on an annual basis. Against this background, in 2016 our market had a number of the brands with the US participation, they are Uber, McDonalds, Starbucks. It is the number of the companies that acctively work on Kazakhstan's market. Also, the agro-industrial complex is one of the priority and potential markets, that have potentials in terms of agriculture and livestock husbandry. An active work is held to export products of the domestic manufacturing industry to the external market. More than 3500 products are exported to the USA duty-free," said Deputy Chairman of the Board of the National Chamber of Entrepreneurs Donmukhamed Absattarov.
As the US side informed, GSP is a tariff programme that enables to import certain commodities to the USA duty-free.
GSP is a tariff progarmme. Kazakhstan, as Russia and China, works according to the schedule of rates fixed. In GSP, duty-free import of almost for 3500 items of products is provided. It means that US consumers can have a wide access. Such states as Kazakhstan can compete with the large competitors that do not take part in GSP, for instance, Russia, China or the European Union. Imports within GSP amount to 21.2 billion dollars. The programme lasts until December 2020, then the US Congress will decide whether the programme should be resumed or modified," said the Trade Representative for Trade Policy and Economics, Edward Gresser.
In order to be a member of GSP, firstly, the income per capita is considered, it should be the country with the low or average income. Following the World Bank, it is 12 055 dollars per capita. The country with higher than this figure is the country with the high income.
The commodities that are included into the list of the programme are varied, they are industrial commodities, products, electronics, jewelry, some of agricultural products, chemicals and mineral resources. But there are the categories that do not comply with the programm, they are textile, clothing and some agricultural products. An the same time, each product should be in the list of products corresponding to GSP. At least 35% of the product's content should be from the country of origin, ownership of the third party is excluded.
The list of countries of GSP includes: Uzbekistan, Mongolia, Afghanistan, Ukraine and about 120 states that are not in the list, the countries with a high income level, such as China, Iran, Russia, Turkmenistan.
As Edward Gresser noted in order export industrial and consumer products to the USA, the stamp Made in Kazakhstan is necessary. Agricultural products should comply with the rules designed by FDA or the Ministry of Agriculture.
We just as the Government do not try to take decisions for buyers. We have the system with the helf of which we can ask to add the products in the list that correspond to the requirements of GSP. You can also file a petition, and then we will take a decision. This process will start in February. Throughout the existence of the porgramme, the most part of clothing and textile has not been in line with the rules of GSP. But, there are several goods that can be exported to GSP, for instance, in Uzbekistan they are national flags. They produce American flags, that are exported to the USA duty-free. And, recently, the US Government has made the products for traveling such as bags and suitcases duty free," he said.
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