BAKU, Azerbaijan, Aug. 21
By Klavdiya Romakayeva - Trend:
Minister of Trade and Integration of Kazakhstan Bakhyt Sultanov and Deputy Chairman of the Cabinet of Ministers, Minister of Economy and Finance of Kyrgyzstan signed a Concept for the establishment and operation of joint industrial trade and logistics complexes (ITLC) on the border of the two countries, Trend reports citing the Ministry of Trade and Integration of Kazakhstan.
The agreement on the creation of new industrial and logistics hubs was reached following the results of mutual visits of the heads of state and the meeting of the Kazakh-Kyrgyz Intergovernmental Council held in early April this year.
The centers of cross-border cooperation are considered as a new growth point for increasing mutual trade and bilateral projects in the real sector of the economies of the two countries.
On the territory of the centers, the most favorable conditions will be created for attracting local and foreign business, developing joint ventures by providing preferences for investors.
At the first stage, the Kazakh side considers the territory of the checkpoints located between the Zhambyl region of Kazakhstan and the Chui region of Kyrgyzstan.
“At the same time, the Kazakh side has the opportunity to expand the proposed territory, defined as an industrial and logistics complex. Thus, it is planned to improve the work of the existing checkpoint "Karasu", modernize the adjacent infrastructure and include the Center in regional distribution networks. The project is also included in the orbit of the Almaty-Bishkek international economic corridor, the ministry said in a statement.
The priorities in the activities of ITLC are:
- industrial cooperation, the creation of new industries and jobs;
- an increase in the output of consumer goods with a high competitive advantage, including food and agricultural products;
- improvement of logistics and infrastructure;
- attraction of new technologies;
- diversification of agricultural production;
- creation of conditions for the implementation of the interaction between state bodies, local self-government bodies, and subjects of agricultural production on the basis of public-private partnership;
- creation of joint ventures for the production of consumer goods with the introduction of new technologies.
The creation of joint Kazakh-Kyrgyz industrial trade and logistics complexes will make it possible to implement profitable export-oriented projects and increase the competitiveness of certain sectors of the economy, including through the use of advanced production and sales management technologies.
The creation of ITLC will make it possible to locate production lines in an economically attractive region with significant volumes of raw materials and a developed infrastructure. And in general, expand the market share of countries in global markets.
In adddition, ITLC in regional distribution networks will ensure the conclusion of direct contracts for the supply of raw materials and the sale of finished products, while reducing the cost of finished products. The development of uniform standards for the technology of pre-sale preparation and sale of goods, as well as the establishment of partnerships and cooperation with traders and various international organizations, will contribute to the increase in the export of agricultural products of the two countries.
It is noted that the volume of trade between Kazakhstan and Kyrgyzstan at the end of 2020 amounted to $796.2 million, of which Kazakhstan's exports to a neighboring country - $562.6 million, and imports - $233.6 million.
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