Kazakhstan is boosting its position as a trade hub for Europe and Asia by joining the World Logistics Passport (WLP), a major Dubai initiative established to increase trading opportunities between developing markets, WAM reports.
Bakhyt Sultanov, Kazakhstani Minister of Trade and Integration; and Sultan Ahmed bin Sulayem, Chairman of Dubai's Ports, Customs and Free Zone Corporation, signed a Memorandum of Understanding.
The WLP creates opportunities for business and governments to actively improve existing trading routes, and develop new ones, through the creation of the world's first logistics loyalty programme for freight forwarders and traders. It has been created to overcome trade impediments, such as logistics inefficiency, that currently limit the growth of trade between developing markets.
As countries in Asia, Africa and Latin America are dependent on developed nations for their exports and trade and relatively little with each other, the WLP makes it easier for those regions to diversify trade in existing products and increase market shares in key products among other developing economies.
Under the leadership of Kazakhstani President Kassym-Jomart Tokayev, Kazakhstan is the third country to formally join Dubai in sharing expertise to smooth trade flows around the world, after Colombia and Senegal. Brazil, Uruguay and South Africa are also registered as partners of the WLP.
Joining the WLP creates an opportunity for Kazakhstan to diversify its exports and imports from Europe and China to growing markets in Latin America and Africa.
Commenting on the announcement, Sultanov said, "Kazakhstan can become a link between the Belt and Road Initiative and the World Logistics Passport. This will open up new opportunities in the field of transport and logistics, revealing the entire transit potential of the country. Almaty will become the key logistics hub of Kazakhstan. The strategic location of the city allows to increase the share of Kazakhstan's trade between China and Europe.
Almaty also provides access to markets in the region such as the Eurasian Economic Union, the Shanghai Cooperation Organisation and the Economic Cooperation Organisation, and can be a gateway between these markets and the World Logistics Passport partners. Almaty airport will become an air hub offering a wide range of world-class services."
Membership of the World Logistics Passport will enable Kazakhstan to access lesser tapped markets. The country's strategic location allows Almaty, its largest city, to increase its share of trade between China and Europe via Rail.
Bin Sulayem, in turn, stated, "Trade is a vital part of economic development and with the addition of Kazakhstan to the World Logistics Passport, the nation is accelerating its future economic growth. The WLP – with Dubai's expertise in logistics at its core – is helping to reimagine how goods and services move around the world, increase resilience in global supply chains and remove the barriers that prevent nations such as Kazakhstan from trading as prosperously as they might."
Source: Kazinform News Agency
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