Due to COVID-19 pandemic and oil price fluctuations, the global economy has been experiencing disastrous effects. Current situation of the global economy has been led nations to form new economic trade agreements.
One of the agreements are formed between the United States of America and Kazakhstan which are strong partners when it comes to trade and economy.
Officials from the US Chamber of Commerce announced forming of the US-Kazakhstan Business Council (USKZBC) to encourage economic and commercial cooperation between the two nations.
US Chamber of Commerce, Vice President and Head of International Affairs Division, Myron Brilliant commented about newly formed The council: “The US Chamber is delighted to help expand US-Kazakhstan commercial engagement, and with the members of the Council, we will focus on supporting initiatives and needed reforms that will contribute to the economic pillar of the US strategy for Central Asia.”
“Building on existing corporate engagement in Kazakhstan, we are excited to now play an active role in the bilateral relationship as the two countries prepare to celebrate the 30th year of diplomatic relations.” he added.
Housing within the Middle East, Turkey and Central Asia Affairs Department of the US Chamber of Commerce, the newly established council is expected to replace the former US-Kazakhstan Business Association, also known as USKZBA, through an enhanced business and policy platform.
Chevron, an American multinational energy corporation, is known as the first American company to make inroads into Kazakhstan in 1993. The company will chair the newly formed council. The company is expected to help advance the business community’s relationship in the Central Asian country, which is home to more than 700 US companies.
Chevron’s Eurasia Pacific Region President Nigel Hearne stated the aim of the council with these sentences: “The integration of the US-Kazakhstan Business Association into the US Chamber will provide the business community with the necessary tools to grow this important and strategic relationship.”
Despite being thousands of miles apart, USA sees Kazakhstan, one of the world’s largest countries and most developed in Central Asia and consider the country as a promising market for business.
According to Kazakhstan government’s statistics, being Central Asia’s wealthiest economy, Kazakhstan is generating over 60 percent of the region’s gross domestic product (nominal), which stands at $181.6 billion,
The country is known with its natural riches. As the world’s ninth largest crude oil exporter that also houses the 15th largest proved natural gas reserves, the country’s wealth is primarily derived from hydrocarbons.
Currenty the US is involved in about 20 sectors of Kazakhstan’s economy including energy, agriculture, insurance and infrastructure. The accumulated value of US investment in the Kazakh economy reached nearly $36 billion, of which $33.9 billion was invested into the mining industry.
According to data provided by the US Chamber of Commerce, Kazakhstan’s financial and insurance spheres ranked second with $974.1 million of US capital invested, while projects related to the professional, scientific and technical activities brought in $509.1 million.
Grown steadily since the mid-2000s, trade between the two countries has standing at approximately $2 billion per year.