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Argentina and Kazakhstan economic relations. Part III

25 June 2014
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The Argentinean interest in the Kazakh market is reflected on the fact that this year Kazakhstan is among the 15 top markets, in terms of priority, for the Argentinean products (Programa de Aumento y Diversificación de las Exportaciones (PADEx)).

According to PADEx calculations, export to Kazakhstan in 2013 — amounted eight thousand dollars, this year he can achieve — U.S. $ 6.8 million, and 16.4 million in 2015.

In 2014, Argentina’s government plans to attract foreign investors through the active participation of Argentine companies in 252 specialized international fairs and through the activities of 70 multi-sectoral sales offices in the World.

In addition, the tool in achieving the goals to increase exports to the mentioned countries is the participation of Argentinian companies in major trade fairs, financing export and investment projects with the ability to impact on exports, compensation payments for investment projects, analysis and review of export subsidies to boost competitiveness. The main objective is to increase the bilateral trade thorough the participation of Argentinean companies in Kazakh exhibitions, the organization of trade missions and by fostering the official contacts.

Given the above, and taking into account the increased interest in the Argentine side in enhancing economic cooperation with Kazakhstan, it is appropriate to focus on encouraging the business community of Kazakhstan towards active participation in Argentina.

To reach these objectives many challenges should be overcome. The first one is to make Kazakhstan known on the Argentinean business community and at the same time to make Argentina known on the Kazakh business community. In this regard, we believe that the academic sector could play an important role by generating at least an interest on this country and to train people who intent to work on those issues.

The second challenge will be to choose a logistic option to reach Kazakhstan and to support it through governmental decisions. In this case, there are three main options: To reach this country from Argentina through Russia, through Georgia-Azerbaijan, through China.

Each of the options has its advantages and setbacks depending on the products. Grains and oil demand China and the huge ports of the Pacific Ocean, food (mainly meat) should consider Russia in order to take advance of the Customs Union (and the future Eurasian Economic Union (EEU)) between Russia and Kazakhstan and, technological and pharmaceutical products could be exported through Georgia (Poti or Batumi ports)-Azerbaijan (Baku-Aktau) in order to increase the possibilities of those products on the Georgian and Azerbaijani markets.

Dr. Paulo Botta
National University of La Plata, Argentina

Dr. Akbota Zholdasbekova
Academy of Public Service, Institute of Diplomacy, Kazakhstan

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