Kazakhstan-Russia Free Trade Agreement

The recent signing of the Kazakhstan-Russia Free Trade Agreement is expected to bring significant benefits to both countries. The agreement, which was signed on 1 January 2022, is set to increase trade between the two nations and promote economic cooperation.

Under the agreement, more than 5,000 products will be exempt from tariffs, including key goods like machinery, chemicals, textiles, and agricultural products. In addition, customs procedures will be streamlined, making it easier for businesses to import and export goods between the two countries.

This agreement is significant for both Kazakhstan and Russia, as it will strengthen their economic ties and create new business opportunities. Kazakhstan is the largest economy in Central Asia, with a GDP of around $181 billion, while Russia is the largest country in the world, with a GDP of around $1.7 trillion.

For Kazakhstan, the agreement will provide a major boost to its economy, as Russia is its largest trading partner. In 2020, over 70% of Kazakhstan`s exports went to Russia, and the country also relies heavily on Russia for its imports.

In addition, the agreement will help Kazakhstan diversify its economy and reduce its dependence on oil and gas exports. By promoting trade with Russia, Kazakhstan will be able to expand its export markets and increase its competitiveness in sectors beyond oil and gas.

For Russia, the agreement will provide new opportunities for its businesses to access the Kazakh market. In recent years, Russia has been looking to expand its economic ties with Central Asia, and the Kazakhstan-Russia Free Trade Agreement is a major step in that direction.

Overall, the Kazakhstan-Russia Free Trade Agreement is a significant development for both countries. By increasing trade and promoting economic cooperation, it will help create new business opportunities and drive economic growth in the region. This agreement is a clear example of how countries can work together to create mutual benefits and strengthen their economic ties.