Kazakhstan to retain level of state support to agriculture after entering WTO

Kazakhstan’s accession into the WTO is not going to affect the level of state support to agriculture, Gulmira Issaeva, Vice-Minister of Agriculture of Kazakhstan.

“We have plans to increase the state support that won’t affect Kazakhstan’s accession into the WTO in any way, because we are within the limits set for the countries,” the Vice-Minister said. She pointed out that during the entering the WTO every country negotiates its accession terms, and state support to the agriculture sector is one of such terms.

“Agrobusiness 2020 program involves rising the subsidies 4.5 times. This fits within the WTO limits: no more than 10% for newly entering countries. With all the state support tools taken into account, the state support to agriculture will make 6.3% for Kazakhstan after the increase,” – she explained.

Also,  the public assistance in form of the reimbursement of the funds aimed at the establishment of  new or expansion of existing production capacities in the key sectors of agribusiness will be introduced to reduce the capital intensity and payback period of the investment projects.

Additionally, new tools of public support in the form of financial recovery, investment subsidies, insurance and loan guarantee, taking steps to improve the mechanism of mandatory crop insurance and livestock insurance in the introduction are predicted. “KazAgro” National Holding provides up to 300 billion tenge for financial recovery of program at the financial market. Above 10 trillion tenge of private funds is expected to be attracted to the agro industrial sector.

Originally posted to tengrinews.kz on 16.12.2013:

http://en.tengrinews.kz/finance/Kazakhstan-to-retain-level-of-state-support-to-agriculture-after-entering-WTO-24635/

Strategy2050.kz on 14.12.2013:

http://strategy2050.kz/en/news/4312/ 14.12.2013