Expert: Using "mirror measures" in response to discrimination of Kazakh products is adequate reaction
Kazakhstan, Astana, July 31 / Trend D. Mukhtarov /
Kazakh Deputy Prime Minister's statement on the use of "mirror measures" in relation to neighboring countries that have introduced the discriminatory excise taxes on Kazakh products is an adequate reaction adopted in the world, Kazakh political analyst Daniar Ashimbayev told Trend today.
"Deputy Prime Minister Aset Isekeshev's statement on the application of "mirror measures" is an appropriate response to the situation," Ashimbayev added. "This measure is quite common in the world practice."
According to him, Kazakhstan did not use all available international instruments for the protection of its business interests and promotion of its exports towards neighboring countries, trying to maintain good neighborly relations virtually during the entire independence period.
"Kazakhstan is a country receiving migrant workers," the expert said.
Earlier, Kazakh Deputy Prime Minister, Minister of Industry and New Technologies Asset Issekeshev said that Kazakhstan will consider the mechanisms of introducing "mirror" measures against the countries that have introduced discriminatory excise taxes on Kazakh products.
"The Ministry of Economy, the Ministry of Industry, the Ministry of Agriculture must make proposals on the possibility of using "mirror measures" against the countries applying discriminatory measures for Kazakh products," Issekeshev added. "We discussed the introduction of the "mirror measures" for those countries that have introduced excise taxes on Kazakh products."
He instructed the ministries to compile a list of products on which "mirror measures" will be imposed and to submit proposals to be considered by the government until August 15.
In particular, the "mirror measures" may affect Uzbekistan and Turkmenistan. According to the Head of the Millers and Processors Union of Kazakhstan Eugene Gan, excise rates on flour set by Uzbekistan are unnecessarily increased. First, the excise tax on imported flour was 10 percent, then it increased to 15 percent.
"We raised this question in November last year," Gan said. "The Uzbek side said that if there is a sharp drop in sales in Uzbekistan, they are willing to negotiate and resolve the issue. The Uzbek side stressed at a meeting of the intergovernmental commission this year that there are no such arrangements."
According to him, Kazakhstan supplied 1.216 million tons of flour to Uzbekistan in 2012, but 709,000 tons during the corresponding period of this year, i.e. exports fell by 45 percent because of the excise tax.
"This has led to almost a quarter of Kazakh mills because exports to Uzbekistan hit 75 percent," Gan added.
"We do not ask, we beg," he added. "It is necessary to rapidly do something. There must be a complex of mirror measures, rather than a mirror measure."