Azerbaijan, Baku, Sept. 24 /Trend E. Kosolapova /
The difficulties faced by the Kazakh producers after joining the Customs Union of Belarus, Kazakhstan, and Russia are associated with increased competition, Kazakh political analyst Eduard Poletaev believes.
"Kazakh business is outraged that it is not well represented in the Russian market. Naturally, they are trying to cause indignation not only among their colleagues, but also in the general public ... But it is necessary to understand that, for a business that has developed in the conditions of the local market with capacity of 15 -16 million people, it is very difficult to compete with a business stretching from Kaliningrad to Vladivostok, with a much larger volume," Poletaev told Trend by telephone on Tuesday.
Before joining the Customs Union, Kazakhstan was warned at a high official level that the competition will be tougher, and the country should be ready for this, the expert said.
According to the analyst, Kazakhstan joined the Customs Union without preparing its economy for this step, and that was its mistake.
However, according to Poletaev, nearly equal conditions are created for all entrepreneurs in the Customs Union. Moreover, in the early phases of the Union's existence Kazakhstan was granted certain preferences.
"There were certain preferences to which Kazakhstan's business got accustomed. For example, when the duties on cars were increased, Kazakhstan had six months, during which people could import cars from abroad at old prices," Poletaev said.
According to him, another factor that hinders the access of Kazakh and Belarus products to new markets in the framework of the Customs Union is that in 20 years, when the countries existed without a customs union, the markets and consumer preferences have been generally formed.
"The Belarusian dairy and meat products have tried to come to market in Kazakhstan. But they do not find here a good marketing and gradually disappear. Because the consumer is used to different products," he said.
According to the analyst, it is necessary to regulate and protect the interests of local producers at a high level.
"Kazakh manufacturers of wine and spirits, tobacco products, manufacturers of different products in the north of Kazakhstan are interested in entering the Russian market. There are tools that can help address these issues, and they have helped in the past, before the creation of the Customs Union. These are various forums of cross-border cooperation, private agreements," the expert said.
According to him, the Customs Union as a whole is not yet in a condition to evaluate the results of its activity and prospects, as it began operating recently.
"But the statistic that is expressed in figures and is present on the website of the Eurasian Economic Commission, shows that in the recent years the trade turnover between the two countries is growing, and so the main goal of the Customs Union is implemented," Poletaev said.