World Monitor Magazine June #3 | Page 38

Invest to kazakhstan practical results are expected from signing the new agreement in the field of trade and economic cooperation? It is important to note that the European Union is the largest trade, economic and investment partner of Kazakhstan. The trade turnover between Kazakhstan and the EU in 2016 exceeded 21 billion USD and amounted to almost 40% of the total commodity turnover of our country. Almost 50% of all investments in the economy of our country over the past 11 years came from the European Union countries. In turn, Kazakhstan is among the 30 largest trading partners of the EU, ranking 26th in terms of total EU trade (15th place in terms of imports, 39th in exports). These statistics reflect the existing prerequisites for consistent work in deepening cooperation with the European Union. Today, the traditionally successful practice of mutually beneficial cooperation in such areas as engineering, subsoil use, oil refining, energy efficiency, the development of transport and logistics infrastructure, pharmaceuticals, the purchase of technologies, etc. has developed. In simple words: Kazakhstan supplies resources to the EU countries, and in exchange gets new production technologies, innovative developments, and know-how. Thus, Kazakhstan's relations with the EU are of a strategic nature and have great prospects for further progressive development. That is why the signing and ratification of the Enhanced Partnership and 32 world monitor Thanks to the policy pursued by the Head of State, more than 243 billion USD of direct foreign investments were attracted to the economy of Kazakhstan over the past 11 years Investments come in all sectors of ‘processing’ – in the pharmaceutical industry (an increase of 8 times), machine building (an increase of 6 times), metallurgy (increase by 86%), production of wood and paper products (increase of 74%), etc. All this is achieved due to a large- scale industrialization program, the main task of which is to develop the manufacturing sector and promote the export of Kazakhstani goods to foreign markets. The EPCA opens up new opportunities for intensifying cooperation in all areas: trade, investment, business development, transport and logistics, and much more. Speaking about cooperation with individual countries, I would like to note that relationships with all countries are developing dynamically. At this stage, the largest volume of foreign direct investment comes from the Netherlands (7.7 billion USD), Switzerland (2.6 billion USD), France (1.1 billion USD), Belgium (710.6 million USD), Great Britain (684.8 million USD), and Germany (249.8 million USD). What industries are attractive for European investment? We wonder which of the 28 EU countries are most active in investing in Kazakhstan. For all investors, including those from the European Union, one of the main attractive areas is the commodity sector of Kazakhstan. In 2016, the mining sector attracted 7.1 billion USD (34% share) of FDI and, compared to 2015, the volume of investments has doubled. It should be noted that over 90% of all German investments in Kazakhstan go to the non-oil & gas sector. We are actively building up cooperation in implementation of German experience in energy saving and energy efficiency. Currently, projects are being implemented within the framework of the raw material and technology partnership. Thus, there is already a substantial platform for increasing economic interaction. The largest increase in foreign investment inflow in 2016 as compared to 2015 is observed in such areas as information technologies - 10 times, electricity supply - 6 times, construction - 85%, trade - 51%, manufacturing - 48%. We are interested in high skills and expertise, know-how, innovations, as well as in good training practices and cultivation of local suppliers, which will also give a strong impetus to the development of small and medium-sized businesses. Cooperation Agreement is a very logical and expected event.