One of the EU's main goals in Kazakhstan is to support its transition to a market-oriented economy, and the establishment of a political system based upon the principles of democracy and the rule of law. The EU also encourages regional cooperation in Central Asia, with a view to coping with the numerous problems in the region (political instability, financial difficulties, rise of fundamentalist movements, environmental degrading, etc.) In this context, the EU is financing regional programmes, such as INOGATE and TRACECA, primarily with regard to infrastructure development.
Contractual Framework
The relations of the EU with Kazakhstan, as well as with all other countries that emerged after the collapse of the USSR, are based on a Partnership and Cooperation Agreement (PCA) which was signed on January 23, 1995, and came into force on July 1, 1999. This agreement provides an adequate contractual framework for the development of political relations between the parties and establishes political dialogue relating to the promotion of mutual trade relations and the development of investment activities, in addition to cooperation in several other sectors, on a regular basis.
The institutional framework provided by the PCA consists of the Cooperation Council, which meets annually on a Ministerial level, the Cooperation Committee (supported in its work by six Working Sub-Committees) and the Committee of Parliamentary Cooperation.
Within the PCA framework, an agreement, which came into force in January 2000, was signed with regard to steel in December 1999. It provides for the gradual deregulation of steel exports from Kazakhstan to the Community, in addition to the conformance to Community standards of fair competition in Kazakhstan.
Since 1993, the two sides have been party a textile agreement. The agreement, establishing free-trade in textiles, is renewable every three years.
Finally, in 2001 an agreement with regard to cooperation in the department of nuclear power and safety came into force. The two sides are currently negotiating the completion of the Agreement on nuclear material trade.
Financing framework
Kazakhstan gets EU financial assistance through TACIS both through the National Programme and also through the Programme for Regional Cooperation, which mainly finances TRACECA and INOGATE.
1. The TACIS regulation determines three priority sectors for the provision of assistance to Kazakhstan for the period 2000-03:
- support for institutional, legal and administrative reform,
- support of the private sector and assistance for economic development,
- environmental protection and natural resources management
2. The main goal of the INOGATE programme ("Interstate Oil and Gas Transport to Europe") is to ensure transport of the Russian and Central Asian energy resources to Europe as well as link these networks with the ones in the Middle East and Northern Africa. An important step was taken on July 22, 1999, with the signing of the INOGATE "Framework Agreement", which established a framework for financing projects. This agreement has been signed, but not yet ratified, by Kazakhstan.
3. The TRACECA programme (TRAnsport Corridor Europe-Caucasus-Asia) was launched in Brussels in 1993. Its goal is to facilitate financing of the project of building a transport corridor connecting Europe with Central Asia through the Black Sea, Caucasus and Caspian Sea. The signing of the Basic Multilateral Agreement for the development of TRACECA (Baku, September 1998) played a significant role in the implementation of this programme. The Agreement established an Intergovernmental Committee (decision-making body, at Ministerial level) and a Permanent Secretariat.
The EU's new policy towards the countries of Central Asia
Following the 11/9 terrorist attacks and the war in Afghanistan, the countries of Central Asian acquired additional geopolitical importance, due to the direct proximity with - and on certain occasions involvement in - the crisis. The EU's long-term goals in the region (democratization of the political life and deregulation of the economies of the countries of the region, combating of the organized crime, access to energy reserves, development of regional cooperation) were now accompanied by some short- and medium- term goals, such as cooperation with the countries of the region to bring down the Taliban regime, averting the spreading of the crisis, cooperation on the distribution of humanitarian aid and support for the new government in Afghanistan. The issue of dealing with fundamentalist groups in the wider region was also stressed, due to increasing tension.
Based on the above, the EU assumed an effort to upgrade its role in the region and to confront the problems which had precipitated the crisis. In this framework, the EU decided:
- to enhance political dialogue with the countries of the region;
- to cooperate with them on the fight against drug-trafficking and on more effective border management;
- to cooperate more closely with countries (Russia, U.S.A, China, Iran, Turkey) and international organizations (UN, OSCE) active in the region;
- to support regional cooperation plans which were developed in past years;
- to double (from 25 to 50 million euros) the annual amount of EU assistance to the countries of the region through TACIS,
- to resume allocating TACIS assistance to and commence negotiations for the conclusion of a P.C.A. with Tajikistan,
- to open a "Europa House" in Tashkent (Uzbekistan), thus upgrading the European Commission presence in the region.
It has to be noted, however, that the EU's ultimate goals remain "consolidation of democracy, facilitation of the transition to open market economies, strengthening of the civil society, implementation of the rule of law and ensuring respect for human rights and fundamental freedoms" (Council Conclusions, 10.12.01).
