Single market means great opportunities for business

May 06. Kazpravda


Single market means great opportunities for businessProspects for the development of domestic industry and electric power within the integration processes were discussed at the briefing in the Central Communications Service with participation of Deputy Minister of Industry and New Technologies Albert Rau, director of the department of electric power and coal industry of MINT Sungat Esimhanov, chairman of MINT Committee for Technical Regulation and Metrology Birjan Kaneshev and chairman of the Association of construction materials Maral Tompiev.

In the preparation of the draft treaty on establishing the Eurasian Economic Union, RK Ministry of Industry and New Technologies is responsible for the sections “Industry, “Technical Regulation” and “Electric Power”. According to A. Rau, each of these blocks is ready.

Thus, in terms of industrial policy and cooperation, the member states will develop and implement the national industrial policies, including adopting the national development programs and other measures of industrial policies. This agreement is particularly relevant for the country on the eve of the second five-year industrialization.

It is planned to define a single list of sensitive products for consultation depending on the interests, mutual information on the plans to implement national industrial policies, cooperation and other measures.

As for industrial subsidies, the current contractual framework of CU and CES provides a mechanism of obligatory coordination and specific subsidies with the interest from 2017.

However, during negotiations on the revision of the draft contract, the Ministry defended the position that the agreement with the Commission which provides specific subsidies will be voluntary. In this connection it was decided that the Kazakh side will develop a separate procedure of voluntary harmonization of specific subsidies.

Along with this, all measures of tax incentives and customs relief on FEZ remain in national competence. Similar agreements were reached on free warehouses. The conditions of creation and functioning of FEZ and free warehouses are not codified in the contract and will be governed by existing international agreements in the framework of the Customs Union and Common Economic Space. At the same time, all measures to support the territory of FEZ and free warehouses must comply with the agreements and WTO rules. Thus, from 2017 preferential customs duties on imports will be cancelled, while measures of tax incentives for producers will in effect after 2017.

As for the industrial assembly, first deputy head of MINT noted that, for example the auto transport produced in industrial assembly regime, will have the right to be sold in the common market only at the level of localization of at least 30 %, and from July 1, 2018 – at the localization level of not less than 50 %.

In terms of technical regulations, it was said at the briefing that they are being developed only in relation to the products included in the Universal list. Today 34 technical regulations of the Customs Union were approved and 24 of them are already in force. However, to regulate the activities of the bodies for certification and product compliance with technical regulations, including test procedure, the draft agreement provides a mechanism for their accreditation.

In this regard, the Ministry of industry and new technologies carries out much work to create test laboratories in the republic.

The sphere of electric power has been long historically integrated for the three countries. Currently, however, it’s too early to speak about a general electricity market, because the member-states have different models of electricity: Kazakhstan has a liberalized electricity market, in Belarus it is a vertically integrated state company and in Russia it is a power market with nodal pricing. In this regard, an agreement was reached to sign before July 1, 2019 an International Treaty between the member states on the formation of CPM (common power market) with common rules for access to networks. The troika agreed to provide before this time each other with unhindered access to networks for interstate transmission of electricity within the limits of technical possibilities and under condition of priority use of electricity for domestic needs.

– Any questions and problems regarding the preparation of the Treaty on establishing the Eurasian Economic Union were removed and the mechanisms laid in them fully meet the interests of domestic business – Rau summed.