RESTRICTED  
  
WT/ACC/SPEC/KAZ/6/Rev.8/Add.1  
 
27 February 2013  
(13-1083)  Page: 1/14  
Working Party on the Accession of Kazakhstan  Original: English  
 
 ACCESSION OF KAZAKHSTAN 
ADDITIONAL QUESTIONS AND REPLIES 
Addendum 
 The following submission, dated 15 February 2013,  is being circulated at the request of the 
Delegation of the Republic of Kazakhstan.  
_______________ WT/ACC/SPEC/KAZ/6/Rev.8/Add.1 
 
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  KAZAKHSTAN ACCESSION TO 
THE WORLD TRADE ORGANIZATION 
5 DECEMBER 2012 PLURILATERAL MEETINGS ON AGRICULTURE 
Question 1 
We appreciate Kazakhstan's response to th e question at the October 2012 plurilateral 
meeting. However, the market price support (MPS) should be notified for the years in 
which a MPS programme is in place, whether the actual procurement occurs or not. 
For instance, the MPS of barley in 2007 and ra w cotton in 2011, etc. should be notified in 
the ST-DS:5. The MPS can be easily calcul ated by using procurement price (applied 
price), external reference price and total prod uction (eligible production) of the product, 
and it does not need the amount of procurement. We assume that the procurement 
prices are announced every year by the government, even if there is no actual 
procurement in the end, in order for producer s to decide whether to sell their products 
to the government or not. 
If this is not the case, we would appreciate it if Kazakhstan could provide us a detailed 
explanation about the price support programm es in Kazakhstan. For example, does the 
government announce, before a crop year  begins, that the price support will be 
suspended for the year concerned, and that the procurement price will not be published? 
If so, what are the criteria for the governme nt to decide the suspension of the price 
support programmes, and what kinds of processes are involved?  
Furthermore, we would appreciate detailed information on: how procurement prices are 
determined, and how the decision of each procurement is made, as well as a yearly 
schedule of operation of the price support programme. 
Answer: 
Kazakhstan took account of this comment and made necessary amendments in the table. 
In particular, the market price support has been notified for the years in which the MPS program was in place, regardless of whether the actual procurement occurred or not.  
Kazakhstan confirms that the Government makes annual announcement of state procurements. 
The standard set of products eligible for the st ate procurements includes the following products: 
wheat, barley, raw cotton, bovine meat, lamb, pork, poultry, small ruminants, horses, dry milk, fatless cheese, butter and sheep wool.  
Procurement to the state grain reserve for food security purposes: 
According to the Law No. 143 "On Grain" of 19 January 2001, the state grain reserve forms an 
integral part of the food security program in  Kazakhstan. For this purposes, the Government 
annually procures wheat from agricultural producers to the state grain reserve in order to 
implement its annual renewal.  
Therefore, procurement for and disposal of the st ate reserve is made on an annual basis and is 
carried out through the state resources. Grain is initially purchased for the state resources, then it 
is transferred to the state reserve. Those volumes of grain, which are released from the state reserve during the process of its renewal, ar e transferred back to the state resources.  
Procurement of grain into the grain stocks are implemented according to the Law No. 143 by the 
"Food Contract Corporation" (FCC), which performs the function of a state operator on the grain 
market. With regard to the grain stocks, the FCC performs the function of the government agent responsible for establishment, renewal and disposal of such stocks.  
The Law on Republican Budget for the respective year provides for financial means on state 
procurements of grain into the grain stocks on an  annual basis. Therefore, the Government by its 
Resolution annually in the beginning of each calendar year provides budgetary funds for this 
purpose.  WT/ACC/SPEC/KAZ/6/Rev.8/Add.1 
 
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  In accordance with the rules "On Formation, Storage, Renewal, Displacement and Utilization of the 
State Grain Resources", approved by the Governme nt Resolution No. 394 of 28 March 2001, state 
procurement of grain is implemented as follows: 
 Through using "advance funding schemes": The FCC makes advance payments during the 
spring/summer period for the future harvest under the condition that the grain will be 
delivered during the fall period. Once the grain is delivered to the state grain resources, the FCC makes final payments at purchase price, which is established by the Government 
based on KazAgroMarketing's
1 proposal, deducting the amount of spring/summer 
payments. 
 During the fall period, the grain is procured at the purchase price on delivery date based 
on delivery EXW incoterms. In this case, the purchase price is also established by the 
Government based on KazAgroMarketing's proposal.  
KazaAgroMarketing determines the purchase price for grain on the basis of the results of the 
analysis on current market prices as well as the analysis on the cost of production and evaluation 
of producer's profit. It should be noted that th e procedure specified above is made on an annual 
basis. 
Procurement to support domestic agricultural producers (crop producers): 
Grain is also procured by the FCC under the proc urement program to support domestic agricultural 
producers. Such procurement is made at prices determined by KazAgroMarketing on the basis of the analysis on the cost of production and evaluation of producers' margin.  
State procurement of barley and raw-cotton is al so carried out by the FCC with the purpose to 
support agricultural producers. The FCC procured those commodities at prices determined by 
KazAgroMarketing in the same way as for the grain being procured to support agricultural producers. 
Procurement to support domestic agricultural producers (livestock producers): 
Each year, the Government through its agent "KazAgroProduct", implements state procurement of 
livestock products directly from agricultural producers. State procurement of livestock products is 
made at prices which are determined by the Co mmission on Pricing Policy of "KazAgroProduct". 
When setting the purchase price, the Commission takes into account that such price shall cover the cost of production and include a profit margin. 
Question 2 
With regard to wheat on ST-DS:7, the negati ve figure in Column 8 (MPS) is directly 
reflected in Column 10. However, we are of the view that the figure in Column 10 should be zero because this Column is supposed to show the sum of MPS and other payments 
(Column 7 and 9), and because the negative fi gure in the MPS should not be used to 
offset any positive figure in other paymen ts. We have no practical problem with the 
wheat AMS in this specific case because there are no support made in Column 7 and 9, 
and because the final figure presented in ST-DS:4 is zero. However, as a matter of 
principle, we think that Kazakhstan should re vise the figure in Column 10 of ST-DS:7 to 
zero. 
Answer: 
Kazakhstan took account of this comment and made necessary amendments in the table. 
                                               
1 "KazAgroMarketing" is responsible for providing pric e information, marketing and consultancy services 
for the Government.  WT/ACC/SPEC/KAZ/6/Rev.8/Add.1 
 
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  Question 3 
Supporting Table DS:4.  Calculation of the Total Aggreg ate Measurement of Support  
According to Table DS:4, the AMS for wheat in 2007 was about 1.08 billion US dollars, 
but this declined in 2010 and 2011 to 22 million and zero US dollars respectively. 
The AMS percentage therefore dropped from 48.2% in 2007 to zero in 2011.  
Could Kazakhstan please expl ain the reasons for the steep decline in AMS, and provide 
details of any related domestic measures? 
 
Supporting Table DS:7. Product-Specific Ag gregate Measurements of Support: Other 
Product-Specific Support and Total Product-Specific AMS 
The Table shows that total product-specific  AMS for wheat dropped from 1.08 billion US 
dollars in 2007 to 22 million US dollars in 2010, and then -826 million US dollars in 
2011.  
What were the reasons for such a change over  this three year period, and why was there 
a negative value in 2011? 
 Answer: 
 The reason for the sharp decline in AMS for wheat is that the world grain prices continued an upward trend, while in Kazakhstan purchase pric es were changeable over the three year period. 
In particular, due to adverse weather conditions, harvest of wheat was substantially decreased in 
2010, making purchase price for wheat moving upwards. As the wheat's harvest in 2011 was 
significantly high in comparison to 2010, purchase prices trended downward in that year. As a result AMS support for wheat in 2011 demonstrated a negative support, which was equalized to 
zero in the STDS:4 of the domestic support tables.   
 Question 4 
Given its earlier response in WT/ACC/SPEC/K AZ/6/Rev.7/Add.1, can Kazakhstan please 
indicate to us how the use of the State Grain Reserve for foreign food aid and "performing sales to export markets" is cons istent with the requirements of paragraph 3 
of Annex 2, which states very clearly that  "[t]he volume and accumulation of such 
stocks shall correspond to predetermined ta rgets related solely to food security." 
Answer: 
Kazakhstan would like to clarify that accordin g to Article 11 of the Law No. 143 "On Grain" of 
19 January 2001, there are two different kinds of grain stocks in Kazakhstan:  
1. The state grain reserve, which is held and accumulated for food security purposes only. 
Therefore, the stocks from the state reserve are not subject to any sales operations. 
2. The state grain resources, which are maintained for: (i) renewing the state grain reserve; 
(ii) regulating domestic market; (iii) performing sales to domestic and export markets; and (iv) 
rendering food aid to foreign countries.  
It should be noted that procurements for and disp osal of the state reserve are carried out through 
the state resources. At first, grain is purchased and transported to the state resources then it is 
transferred to the state reserve. Those volumes of grain, which are released from the state reserve 
during the process of its renewal, are transferred back to the state resources, which are used for 
the purposes specified above.  
The grain resources are annually renewed by the "Food Contract Corporation", which performs the 
function of the Government agent responsible for establishment, maintenance, renewal and 
disposal of such resources.   WT/ACC/SPEC/KAZ/6/Rev.8/Add.1 
 
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  Renewal of the 
state reserve The scheme below shows the difference between two kinds of Kazakhstan's grain stocks: 
 
  
 
  
 
  Question 5 
Could Kazakhstan please provide further advice  on what the designated target amount is 
for the accumulation of reserves  for food security purposes? 
Answer: 
According to the Law No. 143 "On Grain" of 19 January 2001, the state grain reserve forms an 
integral part of the food security program in  Kazakhstan. For this purposes, the Government 
annually procures wheat from agricultural producers to the state grain reserve.  
The volume and accumulation of the state rese rve correspond to predetermined targets related 
solely to food security purposes. According to the Government Resolution No. 34 "On Approval of Volumes for the State Grain Resources" of 13 January 2006, the volume of wheat to be procured for the state grain reserve for food security purposes is fixed and equals to 500 000 metric tons. 
Question 6 
Could Kazakhstan further spec ify whether, when grain is sold from the State resources, 
it is sold at the "current international market  price" "administered price" or the "current 
domestic market price for the product and qua lity in question"?  Again, paragraph 3 and 
footnote 5 specify some differences in relation to acquisition and sales. 
Answer: 
The selling price for the stocks in the state resources is determined as follows: First, when performing the sale to domestic market, the selling price is determined by the State 
Commission for Economic Modernization, and normally is less than current domestic market price for the product and quality in question. 
Second, when exporting the grain to external ma rkets and rendering international food aid to 
foreign countries, the selling price is set on the basis of current domestic market price plus transportation cost.  
Question 7 
We note the revised DS:4 notification using the 5% de minimis . In most years, all 
non-product specific AMS fits within the 5% de minimis . Could Kazakhstan justify why it 
would require a 10% de minimis  when even with significan t increase in non-product 
specific AMS (because of the moving across of input subsidies) these can be managed 
within overall AMS limits? 
Answer: 
First, Kazakhstan requests the 10% de-minimis  level for the reason that in accordance with the 
agriculture development program "Agribusiness 2020", the Government of Kazakhstan is planning to increase investments into agriculture by 2020. 1. The State 
Grain Reserve  2. The State 
Grain Resources  
Food security 
purposes  Domestic 
market 
regulation  Sales to 
domestic & 
export markets  
 Food aid to 
foreign 
countries  Disposal of the 
state reserve  WT/ACC/SPEC/KAZ/6/Rev.8/Add.1 
 
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  According to the new program, the volume of Amber box expenditures on non-product-specific 
programs will be increased up to 2.2 billion of  US dollars by 2020. Therefore, Kazakhstan has 
requested 10% de-minimis  level which will be reduced to 8.5% by 1 of January 2021.  
It is planned that by 2020 over 54% of the total expenditures within Amber box will be used on 
livestock production and about 45% on crop production.  
Second, according to the domestic support tables provided by Kazakhstan, non-product-specific 
level of support exceeds 5% of a total value of agricultural production in 2009 (6.1%) and in 2010 
(6%) and it tightly fits such level in 2007 (4.9%) and in 2011 (4.8%).  
Furthermore, Kazakhstan would like to highlight that the level of non-product-specific support is 
forecast to exceed 5% of agricultural output value2 throughout the period of 2014-2020 as follows: 
Indicator 2013 2014 2015  2016  2017  2018 2019 2020  
GVAP (forecast), 
thousand USD 17 448 
599 18 670 
001 19 976 
901 21 375 
284 22 871 
554 24 472 
563 26 185 
642 28 018 
637 
Share of non-product-specific 
support in GVAP, % 6,7 8,2 8,7
 8,4 9,1 11,5 8,6 8,8  
 
Question 8 
Supporting Table DS:5 – Market Price Support. 
Could Kazakhstan please confirm how they ca lculate eligible production for the purposes 
of market price support to wheat? 
Answer: 
It should be noted that the wheat is being procured under the two different programs. First one is 
procurement to the state grain reserve for food se curity purposes. The second one is procurement 
to support domestic agricultural producers. 
The volume of wheat purchased under the program procurement  to the state grain reserve for 
food security purposes  is fixed and equals to 500 000 metric tonnes. Therefore, this amount is 
reported as "eligible production" in the column 6 of the STDS:5 for the program in question. 
The volume of wheat purchased under the program procurement to support domestic agricultural 
producers is not announced. There are no establishe d quality requirements (based on grades, 
packaging and etc.) for purchasing this commodity. Therefore, the data for "eligible production" equals to a total volume of production of such product, minus the volume of wheat procured under the first program, i.e. 500 000 metric tonnes. 
Question 9 
Supporting Table – ES:1 – Export Subsidies We note there appears to be a typographi cal error with the Calendar Year column 
referring to years 2007 – 2011. However, the average refers to 2009 – 11. 
Answer: 
Kazakhstan accepted this comment and made ne cessary amendments in the table. The average 
refers to years 2007, 2010 and 2011. 
                                               
2 The estimated level for GVAP 2012 was multiplied by standard level of annual inflation in Kazakhstan, 
which is at around 7%. WT/ACC/SPEC/KAZ/6/Rev.8/Add.1 
 
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  Question 10 
ES: Tables - Transparency on Food Aid transactions 
We understand that Kazakhstan is provid ing food aid to other countries. Could 
Kazakhstan please provide further details on  how these international food aid programs 
operate?  In particular, details of the tota l amounts received by each recipient and the 
sales price to those recipients. 
Answer: 
Within the scope of international food aid Kazakhstan offers a certain volume of grain from its 
state resources to neighbouring countries suffering from the consequences of natural disasters or other force majeure situations, on a free of charge basis. In particular, the Government covers expenses related to purchases of grain and its transportation expenses to those countries. The 
table below shows the total volume received by each recipient state in the year, in which such aid 
was applicable. 
Table 1. Export Subsidies: The total volume of food aid 
Calendar year Recipient Quantity of food aid to destination, metric tons 
2007 Afghanistan 3 565 
2007 Kyrgyzstan 1 500 
2008 Afghanistan 1 913 
2009 Tajikistan 12 531 
 
Question 11 
We note that Kazakhstan has indicated that  it would consider changing its approach 
further to that identified in JOB/ACC/36 on ex port subsidies.  We note that the Customs 
Union's common agreement on state support for agriculture does not permit the use of export subsidies between Members given the tr ade-distorting effects of such policies.  
We request that Kazakhstan considers the distortive effects of exempting certain 
countries (its Customs Union partners) from receiving goods subject to export subsidies 
and not others.  We therefore, request that Kazakhstan continue to consider practical 
steps it could take in order to bind ex port subsidies at zero upon accession. 
Answer: 
It should be emphasized that Kazakhstan applies export subsidies when delivering wheat to the 
world markets through the territory of the Russian Federation via railways. Therefore, the export 
subsidies are used to partially compensate the transportation expenses borne by agricultural 
producers for transit. 
Besides, wheat is the only product, towards which Kazakhstan applies export subsidies. Taking into 
account that exports of wheat to the Russian Federation and the Republic of Belarus from 
Kazakhstan are negligible, Kazakhstan agreed not to use export subsidies on intra-CU trade by 
signing the CU Agreement on Common Rules for State Support of Agriculture. 
For example, during the last 5 years approximately half of wheat exports from Kazakhstan went to 
overseas markets (incl. Turkey and Iran), while the other half went to the other CIS countries 
(incl. Azerbaijan, Tajikistan , Uzbekistan and Georgia). 
Question 12 
We would welcome a response to question s posed by other Members at the last 
plurilateral on Kazakhstan's approach to providing agriculture support in 2009, when 
spending on Article 6.2 and Green Box both increased.   The response to question 11 in document WT/ACC/SPEC/KAZ/Rev.7/Add.1, which 
refers to parallel increases in certain types of support and decreases in other types in WT/ACC/SPEC/KAZ/6/Rev.8/Add.1 
 
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  2008 and 2009, seems to reflect a degree of  policy choice rather than solely the 
constraining impacts of the global financial crisis on government support in favor of 
agriculture producers. Could Kazakhstan prov ide more detailed information on the direct 
impacts of the global economic crisis on th e government's ability to provide support to 
agriculture producers? What financial situat ion were the government and other lenders 
facing? How did this limit the scope of polic y options and affect existing policies? Why 
did levels of AMS decrease, while other type s of support continued along an increasing 
trend? 
Answer: 
I t  s h o u l d  b e  e m p h a s i z e d  t h a t  o v e r  9 0 %  o f  t h o s e engaged in agricultural production are small 
farms and households, which continue to face challenges due to high prices for most of the 
agricultural inputs. Therefore, the goal of Kazakhstan's agricultural policy is to keep its annual 
budgetary spending on input and investment subsidies on a stable level.  
During the financial crisis in 2008/2009, resources available for the Government to support 
agriculture were limited. Therefore, the Governme nt decided to substantially cut the amount of 
government spending on state procurements of agricultural products in order to be able to provide support in the form of input and investment subsidies. 
Such policy response to the crisis resulted in re duction of product-specific-support to agricultural 
producers on the part of Government.  
Question 13 JOB/ACC/37 (20 November 2 012) Agriculture Policies 
A t  t h i s  s t a g e ,  w e  d o  n o t  h a v e  a n y  s p e c i f i c  q u e s t i o n s  o r  c o m m e n t s  p e r t a i n i n g  t o  
JOB/ACC/37. However, we would underline that the outcomes of certain ongoing 
aspects of the negotiations related to agricult ure policies will need to be reflected in this 
text in due course. Therefore, we reserve the right to submit questions and/or 
comments at a later date.  
Answer: 
 
Kazakhstan took this comment into account.  
 
Question 14 
JOB/ACC/12/Rev.2 (17 September 2012) PARA 3.Creation of public stockh olding for food security purposes 
It is our understanding that the State food grain reserves are not necessarily renewed 
or allocated annually, but rather only when market conditions dictate that producers 
would be willing to sell to the government at the set purchase price with advance 
payment for their crop. Can Kazakhstan plea se confirm that this understanding is 
accurate? Can Kazakhstan please reflec t its explanation in the revision of 
JOB/ACC/12/Rev.2? Moreover, we would welcome more information on how product is 
purchased for the State food grain reserves. 
We request that Kazakhstan provide a clear ex planation of how stocks in the State food 
grain reserves are disposed of. We note that  paragraph 3 of the Annex of the Agreement 
on Agriculture requires disposal to be  financially transparent. From previous 
discussions, Kazakhstan had explained that stocks from the State grain reserves are 
transferred to the State grain resources. We specifically request a clear explanation of 
how this transfer is transacted, including wh at price the Food Contract Corporation sells 
product to the state grain resources. Please reflect this explanation in the revision of 
JOB/ACC/12/Rev.2. WT/ACC/SPEC/KAZ/6/Rev.8/Add.1 
 
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  Answer: 
According to the Law No. 143 "On Grain" of 19 January 2001, the state grain reserve forms an 
integral part of the food security program in  Kazakhstan. For this purposes, the Government 
annually procures wheat from agricultural producers to the state grain reserve in order to 
implement its annual renewal.  
Therefore, procurement for and disposal of the st ate reserve is made on an annual basis and is 
carried out through the state resources. Grain is initially purchased for the state resources, then it 
is transferred to the state reserve. Those volumes of grain, which are released from the state 
reserve during the process of its renewal, are transferred to the state resources.  
Procurement of grain into the grain stocks are implemented according to the Law No. 143 by the 
"Food Contract Corporation" (FCC), which performs the function of a state operator on the grain 
market. With regard to the grain stocks, the FCC performs the function of the government agent 
responsible for establishment, renewal and disposal of such stocks.  
The Law on Republican Budget for the respective year provides for financial means on state 
procurements of grain into the grain stocks on an  annual basis. Therefore, the Government by its 
Resolution annually in the beginning of each calendar year provides budgetary funds for this purpose. 
In accordance with the rules "On Formation, Storage, Renewal, Displacement and Utilization of the 
State Grain Resources", approved by the Governme nt Resolution No. 394 of 28 March 2001, state 
procurement of grain is implemented as follows: 
 Through using "advance funding schemes": The FCC makes advance payments during the 
spring/summer period for the future harvest under the condition that the grain will be 
delivered during the fall period. Once the grain is delivered to the state grain resources, the FCC makes final payments at purchase price, which is established by the Government 
based on KazAgroMarketing's
3 proposal, deducting the amount of spring/summer 
payments.  
 During the fall period, the grain is procured at the purchase price on delivery date based 
on delivery EXW incoterms. In this case, the purchase price is also established by the 
Government based on KazAgroMarketing's proposal.  
KazaAgroMarketing determines the purchase price for grain on the basis of the results of the 
analysis on current market prices as well as the analysis on the cost of production and evaluation 
of producer's profit. It should be noted that th e procedure specified above is made on an annual 
basis.  
Stocks in the State grain reserve are disposed of by the FCC only upon its annual renewal. Those 
volumes of grain, which are released from the State reserve during the process of its renewal, are 
transferred to the state resources. As the FCC mainta ins both stocks of grain, the transfer from the 
reserve to resources is transacted automatically on a free of charge basis.  
The selling price for the stocks in the state resources is determined as follows: 
1. when performing the sale to domestic market, the selling price is determined by the State 
Commission for Economic Modernization, and normally is less than current domestic market price for the product and quality in question. 
2. when exporting the grain to external market s and rendering international food aid to 
foreign countries, the selling price is set on the basis of current domestic market price plus transportation cost.  
Kazakhstan took account of this comment and revised Consolidated Document on Domestic 
Support Programmes accordingly.  
                                               
3 "KazAgroMarketing" is responsible for providing pric e information, marketing and consultancy services 
for the Government.  WT/ACC/SPEC/KAZ/6/Rev.8/Add.1 
 
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  Question 15 
Please explain how grain reserves are sold from the reserve in the case of natural 
disasters, military conflicts and other force majeure situations by the Food Contract 
Corporation, including how the price for product under such circumstances is 
determined. Please reflect these explanatio ns in the revisions of JOB/ACC/12/Rev.2.  
Answer: 
Stocks from the state reserve are not subject to any sales operations. Those issues, which are 
related to force majeure situations, are referred to the stocks in the state resources. In particular, 
within the scope of international food aid Kazakhstan offers a certain volume of grain from its state resources to neighbouring countries suffering from  the effects of natural disasters or other force 
majeure situations, on a free of charge basis. The FCC delivers food aid to recipient based upon 
entry into force of the respective Government Resolution. The selling price under such 
circumstances is determined on the basis of current domestic market price of grain plus transportation cost. Any costs related to rendering international food aid are covered by the 
Government from the republican budget.  
Kazakhstan took account of this comment and revised Consolidated Document on Domestic 
Support Programmes accordingly.  
Question 16 
We note that in response to the follo w-up written question 3 in document 
WT/ACC/SPEC/KAZ/6/Rev.7/Add.1 posed by us from the plurilateral meeting on 
4 October 2012 that Kazakhstan stated that gr ains released from food security reserves 
are transferred to the "state grain resources " and sold into domestic and export markets 
and also used for foreign food aid. 
If this understanding is correct, how does Kazakhstan maintain that product from the 
reserves for food security purposes is sol d at no less than current domestic market 
prices assuming the food is used as food aid? 
Answer: 
Kazakhstan does not follow-up on how the Government of a recipient country further distribute 
food aid provided by Kazakhstan. No monitoring on selling prices is carried out as the food aid is covered by the Government from the republican budget.  
Question 17 
Can Kazakhstan please confirm if the Food Contract Corporation also maintains "state 
grain resources?"  
Answer: 
Kazakhstan confirms that the state resources are maintained by the "Food Contract Corporation".  
Question 18 Can Kazakhstan please provide more details with relation to how much of these reserves 
are used for foreign food aid versus being sol d at current market prices as indicated in 
its response to follow-up question 3 in document WT/ACC/SPEC/KAZ/6/Rev.7/Add.1. 
Answer: 
The table below shows the amount of grain from th e state reserves used for international food aid 
versus being sold at current market prices over the period of 2007-2012, when such aid was 
applicable.  WT/ACC/SPEC/KAZ/6/Rev.8/Add.1 
 
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Table 2. The amount of grain used for intern ational food aid versus being sold at current 
market prices. 
Calendar 
year International food aid,   
metric tons Domestic market,  
metric tons 
2007 5 065  520 937 
2008 1 913 714 842 
2009 12 531 1 701 485 
 
Question 19 
Given the high cost of transportation and other factors Kazakhstan has referred to with regards to 
export costs in previous submissions, is there a differential in "current market prices" for domestic 
sales and export sales, if so how much? 
Answer: 
The FCC determines export price on grain on the basis of the domestic market price for the given 
period plus transportation-related costs. The ta ble below shows the difference in current market 
prices for domestic sales and export sales. 
Table 3. The difference in the market prices for domestic and export sales 
Direction Domestic price, 
USD/mt Total transportation 
costs, USD/mt Export price FOB, 
USD/mt 
FOB 
Port of Novorossiysk (Russia) 140 160,3 300,3 
FOB  
Port of Ventspils  (Latvia) 140 156,6 296,6 
FOB  
Port of Kherson (Ukraine) 140 152,4 292,4 
Question 20 
Additionally, do any of the exports by the state grain resources benefit from export 
subsidies or other similar benefit? Are thes e accounted for in Kazakhstan's Table ES:1 
notification? 
Answer: 
The FCC is eligible to receive export subsidies as the other grain exporters. The FCC receives no 
other benefits while exporting grain to the world markets.  Benefits received by the FCC is 
accounted for in Kazakhstan's Table ES:1 notification. 
Question 21 
WT/ACC/SPEC/KAZ/6/Rev.7/Add.1 Question 5: We continue to have concerns that Kazakhstan is not fully utilizing policies 
that would be considered green box measures and therefore non-trade distorting. In the 
responses to questions 10 and 12, Kazakhstan references the new Agriculture 
Development Programme for the period up to 2020 as moving agricultural policy toward 
infrastructure and research. It would be be neficial for Kazakhstan to provide more 
information on the Agriculture Development Programme. 
 WT/ACC/SPEC/KAZ/6/Rev.8/Add.1 
 
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  Answer: 
Within the scope of the program "Agribusiness 2020 " the share of Green Box support in the total 
financing of the sector is planned to be increase d. For example, currently the share of Green Box 
in the total volume of support is about 10%, by 2020 this volume will be doubled (up to 20%). 
The main emphasis will be placed on development of science and infrastructure. 
In general, the program has the following specific objectives: 
1. To improve access to key inputs and services for agricultural producers in the following 
spheres: crop production, livestock development, grain storage facilities, water supply 
services, financial services, investments projects, educational services, agricultural research and consulting services; 
2. To improve phytosanitary and veterinary safety systems;   
3. To develop water supply systems; 
4. To enhance the efficiency and effectiveness of the current regulatory arrangements, to 
improve fertilizer and grading efficiency, to improve information services and to develop 
organic farming. 
For example, in order to provide open access to agricultural research the Government will continue 
to reform national agricultural research system in such a way as to build a sustainable system, 
focusing on generation and fostering innovations in agriculture. The following measures are 
identified as key priorities for implementation: 
1. upgrading national agricultural science system to the new international level, focusing on 
integration into the world scientific system and adequate interaction of scientific institutes 
with agricultural producers; 
2. attraction of talented and professional young people into science and to raise wages for the 
scientisists; 
3. modernization agricultural scientific institutes; 
4. increase financing of agricultural sciences to the level of the leading exporters of 
agricultural products. Starting from 2015, it is planned to bring the annual funding of 
agricultural research to 1% of the GVAP (in Kazakhstan this figure made 0.1% in 2011). 
It is expected that by 2020 the share of spending for sciences will be increased up to 2% of GVAP. 
Table 1. Targets to increase accessability of ed ucational services as well as the results of 
agricultural science and consulting services 
Indicator Years of implementation 
2013 2014 2015 2016 2017 2018 2019 2020 
Amount of national scientific 
developments with practical applications in agriculture, units. 0 0 17 20 22 24 26 28 
Amount of the agricultural 
producers covered by the 
services of the knowledge distribution system, units. 2 375 10 165 11 535 12 855 14 300 15 570 17 190 20 510 
Amount of implemented 
innovative projects on agricultural technology transfer and commercialization, units 2 12 15 18 21 24 27 30 
As regards to development of water supply syst ems, in order to implement the development 
program of distant livestock farming, the pastures will be provided with watering sources. 
Due to drought risk, land users and livestock producers heavily depend on artificial water systems. 
In order to solve the existing problems, the program envisages construction of irrigation systems 
for distant livestock farming. In particular, the fo llowing measures are expected to be carried out: 
 drafting development of the legal framework on exploitation of water supply systems for 
distant livestock farming; 
 examination of hydro-geological and soil conditions of the relevant pastures; WT/ACC/SPEC/KAZ/6/Rev.8/Add.1 
 
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   drafting design specifications  for construction of water supply systems for distant farming; 
 construction of water supply systems for distant farming. 
Table 2. The target fo r pasture irrigation 
Indicator Years of implementation 
2013 2014 2015 2016 2017 2018 2019 2020 
Irrigated pastures, million ha   1,0 3,0 3,0 3,0 5,0 5,0 
In order to develop water supply, including irrigation of pastures, the Government plans to develop 
and approve the Program on the Development an d Modernization of Water Resources of the 
Republic of Kazakhstan by 2020.  
Question 22 
With regard to the response to question 12 in document 
WT/ACC/SPEC/KAZ/6/Rev.7/Add.1, Kazakhst an states that measures are being 
undertaken to address the challenges with de livering wheat to world markets.  Please 
provide more details as to what the governme nt is doing to increase storage facilities 
and improve transport infrastructure. 
Answer: 
Storage facilities:  There is a shortage of grain storage capacities in Kazakhstan for more than 3 million metric tons of 
grain. Currently, the storage capacity of grain at bread receiving enterprises amounts to 13.8 
million metric tons, and the agricultural produc ers themselves have capacities of 10.1 million 
metric tons. At the same time, such capacities are not sufficient to store the harvest when its total volume is over 24 million metric tons.  
To address these issues the Government will take steps to increase the construction of storage 
facilities as follows: 
  2013 2014 2015 2016 2017 2018 2019 2020 
Total 
expenditures on construction of storage facilities,            
 
thousand of KZT   6,442,400 14,894,806 3,807,634 8,718,467 9,861,020 11,147,240 10,075,390 10,718,500
 
Investment 
subsidies,            
thousand of KZT   2,175,120 329,523 1,352,501 1,972,204 2,229,448 2,015,078 2,143,700 
Budgetary 
outlays, thousand of KZT   8,385,000       
Assets of State-
owned 
Enterprises, 
thousand of KZT  2,155,000        
Own or 
borrowed funds of investors 
(loans), 
thousand of KZT  4,287,400 4,334,686 3,478,111 7,365,966 7,888,816 8,917,792 8,060,312 8,574,800 
Storage 
capacity, thousand MT 200 500 400 450 460 520 470 500 WT/ACC/SPEC/KAZ/6/Rev.8/Add.1 
 
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  By the end of 2020, capacity of storage facilities will be increased up to 3.5 million metric tons. 
Transport infrastructure: At present, the fleet of Kazakhstan's grain carries consists of 6,000 units. At the same time, 
Kazakhstan needs over 10,000 of grain carries. In  order to address this issue, the Government 
plans to expand the grain carriers' feet over the period of 2013-2020.  
Therefore, Kazakhstan requests the right to  use export subsidies over the period of 
implementation of the program "Agribusiness 202 0". No export subsidies would be applied by 
Kazakhstan by of 1 January 2021. 
The required transitional period for export subsidies will allow Kazakhstan to undertake 
construction and modernization of grain storage facilities, and transport infrastructure and to address the challenges with delivering wheat to world markets without the need for export 
subsidies. 
__________