1. UNECE Committee on Trade 5 th Session Joint ITC-UNECE trade-needs-assessment study on Kazakhstan: major findings and key recommendations Regulatory and procedural barriers to trade (based on the enterprise survey on NTMs) By: Olga Solleder-Skorobogatova, ITC Date: 18 June 2012, Geneva

2. Plan ITC enterprise surveys on non-tariff measures (NTMs) and their implementation in Kazakhstan Preliminary survey results and their comparison to the results in other countries Recommendations

3. Country coverage of the NTM surveys

4. ITC NTM programme Global methodology …based on large-scale company level surveys …representative by sector and company size …adjusted to country- specific requirements Global methodology …based on large-scale company level surveys …representative by sector and company size …adjusted to country- specific requirements Identify trade impediments faced by companies on product and partner country level. Enable companies to voice their concerns and needs regarding the identified problems and create dialogue among national stakeholders. Reinforce country capacity: survey and analysis implemented in collaboration with local specialists, after intensive training. Identify trade impediments faced by companies on product and partner country level. Enable companies to voice their concerns and needs regarding the identified problems and create dialogue among national stakeholders. Reinforce country capacity: survey and analysis implemented in collaboration with local specialists, after intensive training.

5. Project process Country request Stakeholder workshop - initiation Training, survey of enterprises Analysis of the results; draft report Stakeholder workshop - validation Apr 2011Nov 2011Jan 2012Sep 2012Dec 2012 Kazakhstan: timeline

6. Survey methodology Kazakhstan: current coverage Business register Phone screening In-depth face-to- face interviews NTM cases and procedural obstacles 800 companies243 companies28 companies 45 cases

7. …regulatory barriers in partner countries: …regulatory barriers in Kazakhstan: …regulatory and procedural barriers in transit countries: … procedural barriers and problems with business environment at home and abroad: “Uzbekistan introduced a new regulation requiring adding the details of Certificate of Origin into invoices, which should be done within one day. Before it was possible to have a single certificate for the entire shipment, currently it is necessary to do this for every part.” “Kazakhstan Government Resolution about temporary prohibition to export sunflower oil due to the domestic deficit is an issue for our company.” “While exporting beverages from Kazakhstan to partner country, Tajikistan, cargo is inspected in the transit country, Uzbekistan. The cargo is opened and some products are getting lost.” “Railroad transport: Insufficient rolling stock.” Exporting and importing companies report…

8. Survey coverage: Companies

9. Survey coverage: Sectors

10. International comparison

11. Small companies are more affected in other countries. In Kazakhstan?

12. Does Customs Union work? Importing partner countryShare in total export (2009) No. of surveyed companies that export to this country No. of surveyed companies that reported NTMs applied by this country Share of affected companies among those exporting to this country -Belarus 0.5%20 0% - Russian Federation 16.1%10110% Customs Union average 16.6%1218% World average 171482%

13. Most reported regulatory issues Partner countries on exports from Kazakhstan -Inspections -Quality control measures -Anticompetitive measures Kazakhstan on imports -Charges and taxes -Conformity assessment Kazakhstan on exports -Export certification -Export prohibition and licensing

14. Problems with business environment Top issues in Kazakhstan -Limited transportation infrastructure -Time delays -Lack of human resources in agencies involved in export and import -Lack of access to information Top issues in partner and transit countries -Time delays -Corruption -Low security level for persons and goods -Road blocks

15. Regulatory barriers in partner countries: Procedural barriers in partner/transit countries: Regulatory barriers in Kazakhstan: Procedural barries in Kazakhstan: Potential response to most reported issues: Addressing transit issues Enforcing existing agreements More predictable and less stringent regulation of exports, e.g. reduced number of certificates Regularising customs valuation for imports Removing red tape, especially intentional time delays Better railroad infrastructure Preliminary reccommendations

16. For questions or comments please contact skorobogatova@intracen.org Non-tariff measures: ntm@intracen.orgntm@intracen.org International Trade Centre (ITC) Palais des Nations CH-1211 Geneva 10, Switzerland Fax: +41 (0)22 730 0577 Thank you!