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Kazakhstan entrepreneurs have to change mentality to work in WTO

14 june 2012, 18:25
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Kazakhstan manufacturers have to improve quality of the products and change the business mentality to work in the WTO environment, Director General of the Trade Policy Development Center of Kazakhstan Ministry of Economic Development and Trade Ruslan Sultanov told Tengrinews.kz.

"The obligations undertaken by the first country to enter the WTO, Russia in our case, shall be introduced into the legal base of the Customs Union. We are now discussing with Kazakhstan manufacturers how the Customs Union shall function in the WTO and how Kazakhstan manufacturers should behave in it,” Sultanov said.

The expert advises the entrepreneurs to quickly study and process all the information coming from the state authorities. “Our businessmen are receives a lot of information on regulations. When we enter the WTO, there will be even more information to understand and process: technical regulation, legislation, quality and safety requirements, etc. Unless this is done thoroughly and properly Kazakhstan company would not be able to enter markets of other countries,” Sultanov says.

As for the mentality, the expert says that it has already started slowly changing after creation of the Customs Union. Many companies that had earlier imported and retailed goods in Kazakhstan, started manufacturing goods of their own after the large CU market and its opportunities appeared.

Kazakhstan manufacturers face complications in economic and legal education. “Businessmen have to know their rights and obligations and understand how to behave and protect themselves in the WTO,” Sultanov said.

The expert reminded that President Nursultan Nazarbayev instructed that the negotiations on entering the WTO should be completed by the end of 2012.

Member of Kazakhstan Association of Light Industry Companies Natalya Akshabayeva says that Kazakhstan's sewing industry is ready to enter the WTO, however it is too early to speak of the whole textile industry. “It needs to rearm: to tune up the production and start using other, newer, equipment. All the equipment that we now have is the one left from the Soviet times. We are currently meeting our needs, but this is not enough to work in the WTO. Unless the equipment is updated Kazakhstan textile companies will be left without work.”

"We cannot have the raw-export role any longer. We have the raw materials, we have got wool, cotton, felt, but all that is exported for coins. If we were processing them ourselves, the value added cost would have been much higher. We need to produce finished goods. We need to set up the full chain by adding the processing industry into it. This, in term, would enable us to order the fabrics that we need,” Akshabayeva said. “That's why the question on what we can export is quite complicated in light industry for the time being. Meanwhile franchising is the best way. Retailing ourselves is very complicated.”


By Vladimir Prokopenko

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