Alibek IBRAGIMOV

ALMATY (Specially

for THE GLOBE)

Last year, Kazakhstan’s foreign trade turnover came to US$ 14 billion 191.6 million – a little bit less than the country’s GDP. This is a very important fact, as this indicator grew by 53%, in comparison with 1999.

The Statistic Agency got these results based on the data of the customs statistics and information of customs declarations. They do not include the so-called "additional calculations" of unorganized trade. 36% of the total export/import operations was with CIS countries (US$ 5 billion 147.7, 167% of 1999). Last year trade with foreign countries grew by 46%, up to US$ 9 billion 43.9 million.

Exports that grew by 63%, up to US$ 9 billion 139.5 million composed 64.4% of the total foreign trade turnover. The growth in export supplies to CIS and foreign countries was almost the same: 60% and 65% respectively (2 billion 390.3 million tenge and 6 billion 749.2 million tenge). However, within 2000, export supplies were unevenly growing: in the first quarter – by 97% in comparison with 1999; in the second quarter they more than doubled; in the third and fourth quarters – by 39%. In the structure of exports, the share of mineral products considerably grew – by 11% in comparison with 1999, including exports of crude oil increased from 36% to 49%. Last year, exports of chrome ores and concentrates grew by 12%; zinc ores and concentrates – almost doubled; iron ores and concentrates grew by 34%; petroleum products – by 80%; natural gas – by 51%; oil and gas condensate – 2.2 times. Exports of manganese ores and concentrates decreased by 3.5%. In 1999 the share of chemical products in the export decreased from 4% to 6%. The reduction of exports of base metals and metal-related articles was 7% (from 32% to 25%). Last year wheat exports significantly grew – by 68%; exports of barley increased by 25%. The structure of Kazakhstan’s exports is given in Table 1.

As it is evident from Table 1, Kazakhstan acts in two foreign trade fields. If foreign buyers are mainly interested in the country as a source of mineral raw materials, then CIS partners are also interested in Kazakh industrial products and foodstuffs. Meanwhile, now the government focuses its attention on import-substitution. Yet it would be more correct to simultaneously raise and solve the task of our industrialists’ expansion into CIS countries.

Growth of export prices significantly favored the increase of the value of Kazakhstan’s export. In 2000 the average price of a ton of crude oil and gas condensate grew by US$ 67, products of oil refining – by US$ 38. Exporters earned this additional amount without any extra investments.

Last year, CIS countries were the leaders by the volume of products imported in Kazakhstan. Considering transport and insurance charges, products imported from CIS countries worth US$ 2 billion 757.4 million (within a year, it grew by 173%). Import from foreign countries turned out to be considerably less – US$ 2 billion 294.7 million (110% in comparison with 1999). For the Kazakh economy, this is a bad sign, as developed countries are now the source of latest technologies and equipment. It would be better if import from the West grew faster than supplies from the post-Soviet republics. In 2000 the total value of imports came to US$ 5 billion 52.1 million (137% of the level of 1999).

The growth in the specific weight of imported foodstuffs and raw materials required for food industry is very significant (Kazakhstan can actually manage without these imports). Imports of meat and by-products from CIS countries grew 3.6 times, compared with 1999; confectioneries made of sugar and chocolate – 1.8 times; and plant oil – 2.4 times. The growth of imports of alcohol drinks in Kazakhstan seems quite paradoxical: from CIS countries – by 78%; from foreign countries – by 66%. A considerable growth in imports was observed in cement shipments (49%), ferroalloys (42%), medicines (56%), and pneumatic tires ( 77%). This seems strange, as there are cement plants, ferroalloy production and the tire plant in Kazakhstan.

The trade structure of imports is given in Table 2.

As a result of such an inaccurate and unbalanced foreign trade with CIS countries, last year Kazakhstan had a negative balance with them – US$ 367.1 million. In 1999 this indicator was negative as well, yet much less – US$ 105.6 million. Just the opposite, in the trade with foreign countries, the balance was positive – US$ 4 billion 454.5 million (more than doubled in comparison with US$ 2 billion 11.3 million in 1999). The total balance of Kazakhstan’s trade is also positive – US$ 4 billion 87.4 million (US$ 1 billion 905.7 million in 1999). Yet, this does not mean at all that the country gained the whole amount. To be more accurate, it gained only a small part of the same. The rest fell to exporters’ foreign bank accounts.

Table 1

(specific weights, in %)

2000 1999

CIS Foreign CIS Foreign

countries countries countries countries

Total 100.0 100.0 100.0 100.0

Food products and raw

materials for their production 19.7 2.0 24.9 1.4

Mineral products 54.4 55.5 47.3 42.6

Chemical products, including

plastics and India rubber 11.5 2.0 14.1 3.4

Base metals and articles made

of them 7.7 31.6 5.9 41.7

Precious metals and articles

made of them 0.0 5.7 0.0 6.9

Machinery, equipment,

transport means and devices 5.4 1.6 5.8 1.3

Others 1.3 1.6 2.0 2.7

Source: Statistic Agency of Kazakhstan.

Table 2.

(Specific weights, in %)

2000 1999

CIS Foreign CIS Foreign

countries countries countries countries

Total 100.0 100.0 100.0 100.0

Food products and raw

materials for their production 9.7 8.8 9.8 10.7

Mineral products 20.8 4.1 22.2 3.3

Chemical products, including

plastics and India rubber 15.9 13.6 14.2 10.8

Base metals and articles made

of them 12.9 9.1 10.5 8.6

Wood, timber,

cellulose-paper articles 4.0 3.2 3.3 3.2

Machinery, equipment,

devices, mechanisms 17.0 45.9 14.9 39.7

Transport means 14.7 6.9 20.2 14.7

others 5.0 8.4 4.9 9.0

Source: Statistic Agency of Kazakhstan.