The Mazhilis has ratified the Agreement on Free Trade in Services within the CIS, which will now be forwarded to the Senate of Parliament, reports a correspondent from the Kapital.kz business information center.
“The services sector is one of the key drivers of global economic growth. In developed countries, services account for about 70% of the world's GDP, while in developing countries, this figure is around 50%. In Kazakhstan, the share of the services sector exceeds 50%, and in CIS countries, it ranges from 40% to 60%,” stated Minister of Trade and Integration Arman Shakkaliev during the plenary session of the Mazhilis.
According to the minister, the share of services in global GDP continues to grow.
“Against the backdrop of rapid technological advancements, this trend will only intensify. Therefore, it is crucial for us to focus on trade in services. The agreement will solidify commitments to provide more favorable conditions for service providers from CIS countries in partner markets,” he noted.
According to the ministry, in the first nine months of 2024, Kazakhstan's trade in services with CIS countries amounted to $3.2 billion, of which service exports were $1.61 billion.
“The export structure includes services in business, transportation, telecommunications, ecology, finance, education, construction, and tourism,” clarified Arman Shakkaliev.
Service imports from CIS countries totaled $1.59 billion, including telecommunications and tourism services.
“The agreement also provides for a high level of investor interest protection in accordance with international practices. The total inflow of foreign direct investment from CIS countries to Kazakhstan in the first nine months of last year was $2.8 billion,” he added.
The minister also noted that the agreement does not address issues related to public procurement and regulation of natural resources.
“The ratification of the agreement will expand trade and economic cooperation among CIS countries and create favorable conditions for the establishment of branches of Kazakhstani enterprises in the CIS,” concluded Arman Shakkaliev.
It is worth mentioning that during the meeting of the Council of Heads of Government of the CIS in Moscow, Prime Minister Olzhas Bektenov stated that a quarter of Kazakhstan's foreign trade is with CIS countries. Consequently, there is a need for a systematic identification and elimination of existing barriers.