20 Relations between The Republic of Kazakhstan and The European Union

Today the European Union is a political and economic association of 25 states: Austria, Belgium, Czech Republic, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.

Diplomatic relations between the Republic of Kazakhstan and the European Union were established in February 1993.

In December 1993, the Mission of the Republic of Kazakhstan to the European Union was established in Brussels.

In November 1994, the Delegation of the European Commission was established in Almaty.

Political, trade and economic relations between the Republic of Kazakhstan and the European Union are based on the Partnership and Cooperation Agreement (PCA) signed in Brussels on January 23, 1995 (entered into force on July 1, 1999).

Taking into account a 2004 accession to the EU of 10 new Member States from Central and Eastern Europe, the Protocol to the PCA adjusting the Agreement effect towards the enlarged European Union was signed on April 30, 2004 in Brussels.

Since 1999 meetings of bodies set up in accordance with the PCA are held on a regular base such as the Cooperation Council, Cooperation Committee and Parliamentary Cooperation Committee.

Aiming at promoting discussion of current issues of economic cooperation, mutual access of goods and services the Subcommittee on trade and investments was established. According to the decision of the 3rd meeting of ''Kazakhstan-EU'' Cooperation Committee held in April 2002, the mandate of the Subcommittee was extended to the issues of transport and energy. The Subcommittee on Justice and Home Affairs was also set up at the meeting.

The Partnership and Cooperation Agreement promotes economic development, reforming process in Kazakhstan, and creates conditions for establishing of close links between Kazakhstan and the EU in every sphere of activity. In particular, it provides application of most-favoured nation regime in trade of goods between Kazakhstan and the EU and prohibits application of quantitative restrictions on imports of goods. The Agreement also stimulates Kazakhstan's accession to the WTO.

Kazakhstan is EU’s most important trade and investment partner in Central Asia while the European Union is Kazakhstan’s key trade partner.

 Technical cooperation between Kazakhstan and the EU involves TACIS (Technical assistance to the CIS countries), TEMPUS (assistance in the field of education), INTAS (International Association on scientists supporting in the CIS countries), COPERNICUS, Europartenariat and other programs.

During the period of 1993-2005 under the TACIS programme Kazakhstan received about US$ 200 million to support small and medium sized enterprises, privatisation and structural reorganisation, investments into human resources.

Further cooperation in this sphere will be developed through the Common EU Drugs Strategy for 2005-2012 and the CADAP programme will focus on strategic planning of national and multilateral programmes, legislation, activity of law enforcement agencies and collaboration in judicial sphere, control over precursors and permitted drugs, money laundering, erasing of illegal landings and measures on reducing demand for drugs.

EU’s further enlargement plays a positive role in intensification of interaction between Kazakhstan and the European Union. The new EU members are natural supporters of cooperation with the former Soviet countries, fist of all due to economic reasons. Generally, it is connected with restoration and support of traditional trade and economic links as well as EU’s large investments in the economies of the Central, Eastern European and Baltic countries which would be ineffective without markets of countries to the East of the EU.

The 2004 EU enlargement considerably moved it closer to Kazakhstan’s frontiers. Integration activities of our state, especially within the Single Economic Space, and implementation of the EU program "Wider Europe – Neighbourhood: A New Framework for Relations with our Eastern and Southern Neighbours" and the European Neighbourhood Policy should promote intensification of mutual contacts.

Fundamental principles of the ENP correspond to strategic aims and national interests of Kazakhstan. These principles aimed at close political dialogue, facilitation to social and economic development of country-partners through cooperation with EU, opening of internal markets in accordance with the WTO and EU standards as well as close cooperation in the sphere of justice and internal affairs in general.

On October 4 2006 Minister of Foreign Affairs of the Republic of Kazakhstan K.Tokayev held talks with EU External Relations Commissioner B.Ferrero-Waldner. Ms Ferrero-Waldner said that the level of Kazakhstan's economic development exceeds ENP standards. In this connection she proposed to set up a special formula of cooperation between Kazakhstan and the European Union within this initiative.

In the nearest future, a particular importance in Kazakhstan-EU relations will be attached to the issue of granting our country a market economy status.

According to the Resolution of the Council of Europe Kazakhstan was excluded from the list of non-market economy countries and granted an intermediate status of "a country with economy in transition" since October 2000. Today the work is under way aimed at providing Kazakhstan with the market economy country.

The European Union is also one of the key parties to negotiations on Kazakhstan's accession to the World Trade Organisation. The progress reached allows to expect that the negotiations with the EU on this issue will soon be finalised.