An unfair, ancient act - US experts called for the repeal of the Jackson-Vanik amendment for Kazakhstan
In Washington, diplomats, congressmen and heads of various departments discussed trade issues in Central Asia, including the Jackson-Vanik amendment, which is valid for Kazakhstan, but was canceled for many countries during a round table on the topic: "Boosting U.S. trade & investment in Central Asia." Kazinform News Agency correspondent explores what prospects the repeal of this amendment offers Kazakhstan.
“We will discuss the problems of trade in Central Asia and, most importantly, the Jackson-Vanik amendment, which is valid for Kazakhstan, but has been canceled for many countries. In my opinion, it seems extremely unfair and this law should be repealed,” moderator of the event, Senior Fellow at the Jamestown Foundation Margarita Assenova said.
The Jackson-Vanik amendment to the Trade Act of 1974 restricts trade with countries, which haven’t complied with the requirements for freedom of emigration, that prevents the establishment of permanent normal trade relations (PNTR) between the United States and Kazakhstan.
Congressman Jimmy Panetta expressed gratitude to the International Tax and Investment Center for organizing this event. The congressman urged to continue the work to further educate his colleagues in the US Congress on why it is necessary to get rid of the Jackson-Vanik amendment.
“I think that the United States should stop being a difficult partner and start being a serious partner when it comes to the Central Asian states,” Jimmy Panetta said.
Congressman Joe Wilson, speaking about the potential of the Central Asian countries, noted that the region should be economically strong and independent, and stressed that ‘America will support Kazakhstan’, including in lifting trade restrictions.
“I have high hopes for Central Asia, I have seen its potential and I look forward to visiting these countries again,” Joe Wilson said.
Daniel Witt, President of the International Tax and Investment Center, emphasized that since the first days of independence, Kazakhstan has been open to American business and has made every effort to create conditions in the legal, tax and trade spheres.
“To succeed, to get a return on your investments, of course for this requires political stability, reasonable economic policy, government regulation, minimal bureaucratic delays and, most importantly, the rule of law and protection of property rights, and I think that Kazakhstan has high marks in all these categories. I think that the most important steps that the U.S. government can take to improve the investment climate in Kazakhstan are the lifting of various restrictions on investments, such as the long-outdated Jackson-Vanik amendment,” Daniel Witt emphasized.
Ambassador of the Republic of Kazakhstan to the United States Yerzhan Ashikbayev in his speech emphasized the dynamic development of relations with the United States and the importance of developing trade and investment with the countries of Central Asia. The Ambassador noted that Kazakhstan and other Central Asian states adhere to a multi-vector foreign policy, which implies the development of relations not only with their closest neighbors, with whom they have very good relations, but also with the United States.
“Our country strives to improve its investment attractiveness, liberalize the economy and support industrial development, and in this regard, Kazakhstan intends to send a very clear signal about the need to eliminate one of the most outdated obstacles to the development of bilateral relations – the Jackson-Vanik amendment,” Yerzhan Ashikbayev said.
Eric Hontz, Director of Center for Accountable Investment, Center for International Private Enterprise (CIPE), also noted the importance of Central Asia. He added that the multi-vector foreign policy of the Central Asian states needs to be complemented by a multi-vector economic policy in recognition of separate countries, which invest in some strategic assets in Central Asia. Among the important areas for American investments are logistics and its infrastructure, agriculture, the domestic market, minerals and tourism, as well as the formation of joint structures that would facilitate the implementation of these projects. Eric Hontz also said that the repeal of the outdated law would contribute to the development of economic ties between the United States and Central Asia.
Matthew Edwards, Director of the Office of Russia, Ukraine and Eurasia at the International Trade Administration, noted that the American side should not expect the Central Asian countries to significantly reduce their relations with China and Russia. These relations have not only been established for a long time, but are also very important for the economies of the Central Asian countries.
But, Central Asians want American companies' products to be part of their product range. U.S. technological leadership is a source of opportunity for American companies in many areas, which gives America an advantage.
Ariel Cohen, Managing Director of the Energy, Growth and Security Program at the International Tax and Investment Center, noted that there is no reason why the United States should not develop trade, invest more in transport corridors, develop agriculture, invest in biotechnology, since Kazakhstan has huge potential, an emerging market, an educated and talented population. It will be an omission for the American side if they do not trade, invest and remove obstacles with Central Asia.
“Why is the United States clinging to an ancient legislative act, which is no longer relevant, but also irrelevant. It is an obstacle to investment and trade – yes. This is an unfair piece of legislation that needs to be repealed,” Ariel Cohen said.
