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Regulatory and Procedural Barriers to Trade in Kazakhstan

image of Regulatory and Procedural Barriers to Trade in Kazakhstan

Kazakhstan’s trade performance can grow by focusing on its domestic capacity to trade, according to a survey of companies and state agencies undertaken by ITC and the UN Economic Commission for Europe. Those surveyed seek stronger trade regulations and procedures, better transport and logistical services, and infrastructure for standardization, quality assurance, accreditation and metrology. Capacity building and enhanced public-private sector consultation would benefit state agencies, exporting and importing companies, transport and logistics providers. Technical requirements and conformity assessment are top reported obstacles by Kazakh companies. Rules and certificates of origin challenge manufacturing exporters, while quantitative restrictions affect agro-food exporters.

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Conclusions and policy options

NTMs can both promote and inhibit trade. Regulations imposed for legitimate public policy objectives can still have trade-impeding effects. First, NTMs can be misused for protectionist reasons, e.g. by setting more stringent requirements than necessary to achieve public policy objectives. Second, companies can experience difficulties complying with NTMs, either due to companies’ capacities or due to procedural obstacles. As a result, the welfare change induced by NTMs is difficult to unravel. ITC evaluates the impact of NTMs by directly surveying exporting and importing enterprises. In order to understand how NTMs affect businesses, the survey also analyses procedural obstacles associated with NTMs and inefficiencies in the trade-related business environment.

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