US may lift trade restrictions with Kazakhstan

Tengrinews.kz – A bill on modernizing trade with Kazakhstan has been introduced to the US Congress, providing for the repeal of the outdated Jackson-Vanik Amendment.

According to the information, this amendment has been in effect since the times of the USSR and deprives Kazakhstan of Permanent Normal Trade Relations (PNTR) status with the United States.

"The Jackson-Vanik Amendment, part of the Trade Act of 1974, was originally enacted to pressure the Soviet Union to allow Jewish emigration. However, Kazakhstan, an independent nation since 1991, has long met the amendment’s requirements, ensuring its citizens have the right to emigrate freely. Kazakhstan has been in full compliance with U.S. freedom of emigration laws for decades," the report notes.

It is noted that since Kazakhstan joined the World Trade Organization (WTO) in 2015, its economy has continued to grow.

“U.S.-Kazakhstan trade reaching $3.3 billion in 2024, a record high. Kazakhstan is a critical partner for the U.S. in Central Asia, serving as a leading regional hub for trade, investment, and energy, including rare-earth minerals and uranium production. Despite this, it remains subject to trade restrictions that no longer serve their original purpose, while other former Soviet states have long since been granted PNTR status,” the information explains.

As US House of Representatives Congressman Jimmy Panetta said, “eliminating outdated Cold War-era policies like Jackson-Vanik is essential to strengthening America’s economic and strategic ties in Central Asia.”

“By granting Kazakhstan PNTR status, the U.S.-Kazakhstan Trade Modernization Act will promote greater economic cooperation, enhance investment opportunities, and support a stable and independent Kazakhstan at a time of increased global competition. It’s a long past time we brought this critical trade partnership into the 21st century,” said Jimmy Panetta.

Robert Aderholt noted that this bill "will eliminate outdated trade barriers, strengthen our economic ties, and promote stability and growth in the region." In his opinion, it "will also create new opportunities for American businesses, support our agricultural industry, and benefit the economy in Alabama and across the country."

"Kazakhstan and the broader Central Asian region are important economic and strategic partners for the United States, particularly as China and Russia work to expand their influence," Robert Aderholt announced.

These changes were supported by a member of the US House of Representatives, Dina Titus.

"Establishing PNTR would help businesses in Nevada, create more jobs, and strengthen diplomatic ties at a time when Russia seeks to expand its influence in the region," Dina Titus expressed her opinion.

Darin LaHood also emphasized that the bill on modernizing trade relations between the United States and Kazakhstan is an important initiative that "will also benefit Illinois' economy and promote American agriculture."

"Kazakhstan and countries in Central Asia are critical trading partners for the United States as the Chinese Communist Party and Russia are actively working to dominate the region," Darin LaHood noted.

Ami Bera emphasized the potential for increased trade and investment between the two countries.

“This bipartisan legislation not only benefits American businesses and workers, but it also deepens our diplomatic engagement with a key partner and young democracy in the Central Asian region. This bill is a crucial step to build on our shared efforts to foster economic growth and advance mutual prosperity,” Ami Bera commented on the situation.

Thomas Suozzi is also committed to developing US-Kazakh relations.

“The U.S. Kazakhstan Trade Modernization Act is a critical piece of legislation that will allow the U.S. to increase trade with Kazakhstan and push back against the Chinese Communist Party and Russia’s attempts to dominate the region,” noted Thomas Suozzi.

The United States has previously granted PNTR status to Albania, Armenia, Bulgaria, China, Czechoslovakia, Estonia, Georgia, Hungary, Kyrgyzstan, Latvia, Lithuania, Mongolia, Romania, Ukraine, and Vietnam.

"Kazakhstan is the largest economy in Central Asia, contributing two-thirds of the region’s GDP. The country plays a pivotal role in global energy markets, producing 43% of the world’s uranium and serving as a key supplier of critical minerals essential for the energy transition. Additionally, Kazakhstan’s strategic location between Russia, China, and Europe positions it as a vital link in global supply chains, particularly through the Middle Corridor trade route," the information explains.

The H.R.1024 bill was introduced by Congressman Jimmy Panetta (Democrat, California) with the support of Robert Aderholt (Republican, Alabama), Dina Titus (Democrat, Nevada), Darin LaHood (Republican, Illinois), Ami Bera (Democrat, California), and Tom Suozzi (Democrat, New York).

The Jackson-Vanik Amendment is a 1974 amendment to the U.S. Trade Act that restricts trade with countries that impede emigration and violate other human rights. It was proposed by Congressmen Henry M. Jackson of Washington in the Senate and Charles A. Vanik of Ohio. The amendment prohibits the provision of most-favored-nation treatment, government loans, and loan guarantees to countries that violate or seriously limit the rights of their citizens to emigrate and other human rights. The amendment also provides for the application of discriminatory tariffs and fees to goods imported into the United States from countries with non-market economies.