On January 24, 2025, Kazakhstan's lower house of parliament, the Mazhilis, approved in the first reading government-proposed amendments to legislation regarding the determination of the country of origin of goods. This bill, which is still under discussion and requires a second reading, aims to create an updated electronic registry of Kazakhstani producers, providing comprehensive information about operating enterprises and their products.
The revised information system is expected to identify unscrupulous companies that market foreign-made goods under the 'Made in Kazakhstan' label. Such enterprises would be denied state support and participation in officially announced tenders.
One of the key measures of state support for registered enterprises, following the final adoption of the amendments, may involve requirements for companies extracting solid minerals in the country. Natural monopolies, the quasi-state sector, and subsoil users, regardless of ownership forms, will be required to prioritize posting their goods and services needs in the registry's information system. This is anticipated to give small and medium-sized enterprises a competitive edge in procurement.
The stakes are significant for Kazakhstan, with the annual market for state-regulated purchases currently estimated at 20 trillion tenge (over 37 billion euros). Deputy Aituwar Koshmambetov from the Respublica party emphasized that the digital registry mechanism could stimulate the country's economy by providing advantages to local producers, potentially leading to the creation of new enterprises and jobs, as well as increased tax revenues.
However, some economists outside the government express skepticism about the proposed changes, noting that this is not the first attempt to stimulate domestic production. They argue that Kazakhstani goods have historically struggled to compete with European and American products, and since mid-2022, they have increasingly lost popularity to products from Russia, Belarus, and China due to pricing issues.
Critics, including economist Magbat Spanov, argue that the proposed measures are outdated and ineffective, citing a lack of genuine competitiveness in the domestic market. They suggest that a more strategic investment in priority sectors is necessary to enhance production.
Another economist, Aidarhan Kusaikov, highlights the challenges posed by Kazakhstan's reliance on raw material exports, which he believes distorts the local currency and hampers production viability. He advocates for a market-driven currency valuation to improve the competitiveness of Kazakhstani products.
Despite these concerns, Koshmambetov remains optimistic about the potential impact of the new legislative measures, asserting that they will support local industries in producing high-quality goods and facilitate exports to both neighboring countries and further abroad.