Evolving EU-Kazakhstan relations offer new agriculture market opportunities

Kazakhstan is a growing market opportunity for European agricultural food and beverage exports, says Wojciechowski, underlining what he hails as the emerging importance of an evolving EU-Kazakh relationship.

At the end of May 2024, Agriculture Commissioner Janusz Wojciechowski led a delegation of 39 agri-food businesses and organisations from across the European Union on a visit to Kazakhstan.

On his return, he took part in a Euractiv event on 5 June 2024 looking at the relationship between the EU and Kazakhstan, alongside Deputy Foreign Minister of the Republic of Kazakhstan, Roman Vassilenko.

Both were keen to highlight how the bilateral relationship has evolved in recent years, marked by a growing emphasis on economic cooperation, political dialogue, and partnerships in various fields.

The future of EU-Kazakhstan cooperation was discussed, focusing on priorities, geopolitical climate, technology transfer, and addressing water-related challenges in Kazakhstan.

Trading partners

The EU’s largest trading and investment partner in the Central Asia region, Kazakhstan, holds significant potential for increasing agricultural trade with the EU. In fact, the country is the first Central Asian partner to have concluded an Enhanced Partnership and Cooperation Agreement (EPCA) with the EU.

“Just a few days ago, I returned from Kazakhstan, where I led a productive, high-level mission of great political importance to the European Union. And of great personal importance to me. The focus of my mission was to strengthen our partnership in agrifood trade.”

Wojciechowski explained that this represents a vital aspect of Europe’s relationship, with a total economic value of over €720 million, adding that there is additional scope to increase this volume.

The Deputy Minister agreed: “Agriculture is an area where we have a huge potential as the Commissioner just mentioned, as only half of this 200 million hectares [in Kazakhstan] is used for actual agricultural purposes.”

Natural resources

With trade and investment playing a central role, economic cooperation has been a cornerstone of EU-Kazakhstan relations. As well as agriculture, Kazakhstan’s natural resources, particularly oil, gas, and minerals, have attracted European companies seeking access to energy markets and investment opportunities.

Also on the panel, Samuel Doveri Vesterbye, Managing Director, European Neighbourhood Council (ENC), was keen to remind policymakers in the next mandate to do their homework.

“There’ll be new EU leaders, there’ll be a new European Parliament. And all of these people will have a different or sometimes lacking knowledge about the complexities in the region which are essentially changing on an extremely regular basis,” said Vesterbye.

He added: “I would be predisposed to think that instead of them necessarily prioritising something else, they need a lot of information about the current setting. But there’s no doubt in my mind that the business sector is looking towards multiple corridors, and the trans-Caspian corridor in Central Asia and Kazakhstan specifically, is of a lot of importance”

The Middle Corridor

Zhanibek Arynov, Assistant Professor, at Nazarbayev University, added that the time has come for action: “Kazakhstan and the EU have the legal political framework for deepening the cooperation. I think it’s time now to deliver. We’ve been talking about this middle corridor at the Investors Forum earlier this year, and all the commitments. But I think we maybe need to push faster in implementing those commitments.”

According to Maryam Agharabi, Research Coordinator at China & Central Asia Studies Center (CCASC), KIMEP University, the will and the facilitation are there on a political level, but she sees a need for the business sector to be more proactive. “We need more direct contact between business communities on both sides,” she said.

Agharabi also emphasised innovation: “ICTs are at the heart of development and essential for the transition to a green economy. Closing the digital gap in a vast country like Kazakhstan can help diversify the economy, create decentralised markets, boost development in the periphery and prevent unnecessary internal migration. This is a key area where the EU and European businesses can step in and effectively create a win-win outcome.”

Navigating diplomatic terrain

Beyond trade, despite an unstable geopolitical climate, the future relationship between the EU and Kazakhstan looks to be in good shape. As Kassym-Jomart Tokayev, President of Kazakhstan, said recently: “Unburdened by the complexities of superpower politics, our agility enables us to navigate intricate diplomatic terrains and carve paths toward compromise and reconciliation.”

Although the question was raised about potential contradictions between strategic autonomy and expanding alliances, emphasis was placed on implementing concrete results and connecting citizens and cultures.

As Taneli Lahti, Head of cabinet of Jutta Urpilainen, Commissioner for International Partnerships, European Commission, pointed out: “Let’s not forget that the whole expression is ‘Open Strategic Autonomy’.”

“This means diversification of partnerships and diversification of supply routes. Because, obviously, Europe cannot succeed in a vacuum. And we need partners. We like to think of ourselves as masters of trade and investment and globalisation, but dependencies on single suppliers, on single partnerships, [have created] fragilities. So, our solution and our suggestion is diversification,” he explained.

“Our partnership is based on genuine friendship, mutual respect and strong ties and our political interaction has reached a new level in recent years,” added Vassilenko.

Finally, all panellists agreed that the EU and all partner countries must remain committed to financial and policy measures to help develop the Middle Corridor in the face of the extreme effects of climate change.

“The environmental sustainability of this route must remain a key concern. If we fail to secure trade routes against climate change, all these efforts risk being rendered futile,” concluded Agharabi.

This article follows the Euractiv-organised policy debate “EU-Kazakhstan relations – What are the drivers for increased economic and trade cooperation?” supported by The Embassy of the Republic of Kazakhstan to the Kingdom of Belgium.

[By Jennifer Baker I Edited by Brian Maguire | Euractiv’s Advocacy Lab ]

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