Kazakhstan in the WTO: Positive and Negative Impact on the National Economy - Thesis Example

The paper "Kazakhstan in the WTO: Positive and Negative Impact on the National Economy" is a perfect example of a macro & microeconomics thesis. After 20 years of accession, Kazakhstan finally became the 162nd member of the World Trade Organisation (WTO) on 30th November 2015. The accession negotiations were concluded on June 22nd, 2015, after a vote was taken by the other 161 members. Kazakhstan’s government then ratified the agreement and 30 days after ratification the country gained full membership of WTO. This, together with Russia’s, has been the longest accession negotiations in WTO (WTO, 2016). Having first applied for membership in 1996, Kazakhstan has had a rough running, failing to conclude agreements in 2013 and 2014. This was as a result of her bilateral agreements with other members of WTO. Moreover, her membership to the Eurasian Economic Union (EAEU), a trade union with Belarus and Russia formed in 2010. Nonetheless, an agreement was reached and Kazakhstan can now enjoy the benefits of being a member of the WTO. This research paper is necessitated by this new development.

Kazakhstan’s membership in WTO will undoubtedly result in the change or amendment of some of its trade policies. This implies that businesses in Kazakhstan are also going to be influenced by these changes. This research study is, therefore, relevant as it will look into how exactly Kazakhstan’s economy will be affected by her membership in WTO.

• • 1.2. Kazakhstan’s Economy and Trade activities

Kazakhstan being a landlocked country shares its borders with Russia, China, Turkmenistan, Uzbekistan and Kyrgyzstan. Its economy is the largest economy in Central Asia. The former member of the Soviet Union is well endowed with natural resources in the form of oil, minerals and rich agricultural land. Oil and gas are the largest economic sector. Her industrial sector is, therefore, dependent on the extraction and processing of these natural resources and machine building.

Kazakhstan has enormous oil reserves producing an estimated 700,000 barrels of oil daily, and the production is growing at a rate of approximately 20% to meet the government’s forecast of 800,000 barrels per day. Production of natural gas was 11.5km2 in 2000, an increase from the previous year where production was 8.2km2.