RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/KAZ/7 
24 October 2002 
 (02-5855) 
Working Party on the 
Accession of Kazakhstan Original:   English 
 
 
 
ACCESSION OF KAZAKHSTAN 
 
Questions and Replies Concerning Domestic  
Support and Export Subsidies in the Agriculture Sector  
 
 The Ministry of the Economy and Trade of the Republic of Kazakhstan has submitted the 
following information with the request that it be circulated to members of the Working Party. 
 
_______________ 
 WT/ACC/SPEC/KAZ/7 
Page 2  
 
 Question 1 
DS:1 We request that the Government of Kazakhstan pr ovide a complete description of all measures 
under General Services para 2.(b) Measures for p est control and plant diseases protection and 
veterinary measures. 
Please provide more detailed information on these programs and how they meet the criteria 
under paragraph 2 of Annex of the WTO Agreement on Agriculture to qualify as green box programs. 
Answer:
 
1)  Pest control, plants protection and veterinary measures cover: 
a) organization of systematic surveillance of a ppearance, reproduction and growth of pests, 
diseases and weeds, carrying out a quarantine inspection and laboratory expertise of imported from other states into the Republic  and exported plant products and other 
materials which might be carriers of quaran tine pests, plants diseases and weeds, as well 
as of vehicles through the Department of plants protection and quarantine and other 
structures under the jurisdiction of the Ministry of agriculture; 
b) determining of strain and sowing characteristics of seeds and weeds in pedigree seed 
farming, strain trial stations, state resources of seed grain through CSC "Kazagreks" (former Republican seed inspection); 
c) carrying out by State commission on strain testing of proof tests and inspection of seeds 
and hybrids, included in the Regist er of new zoned crops variety;  
d) licensing of veterinary activity, carrying out  of state veterinary control over import, 
export, transit and inter-republican transporta tion of products and animal raw materials, 
pharmaceutical preparations and other freight under inspection through the department of 
veterinary of the Ministry of Agriculture a nd other subordinated structures of the Ministry 
of Agriculture. 
2) A detailed description of "Green box" measures is presented in Appendix 1. The financing of 
"Green box" measures as any financing from the stat e budget is stipulated within the framework of 
individual budget programs. 
 The list of state budget programs is consider ed and approved annually by the Republican 
Budget Commission under the Government of the Republic of Kazakhstan. 
 Financing is performed through the Ministry of Finance of the Republic of Kazakhstan to one 
or another branch ministry. The Ministry of Agricu lture on behalf of Budget Department jointly with 
branch department administers all indicated budge t programs. Each budget program has an individual 
realization mechanism. 
 Information on financing from the state budget is kept in the Budget Department of the 
Ministry of Agriculture. 
 Allocated funds are not designed for redistribu tion of consumer's funds and for price support 
to producers.  WT/ACC/SPEC/KAZ/7 
 Page 3 
 
 
 Question 2 
Transparency continues to be an issue.  We ex pect proper identification of data sources and 
explanation of programs, especially with respect  to how the measures claimed as box exempt 
(Supporting Table DS:1) meet Annex 2 criteria. 
Answer:  
A detailed description of "Green Box" measures is presented in Appendix 1. 
The financing of measures of "Green Box" , as other financing from state budget, is 
established in budget programs. 
A list of state budget programs is annually c onsidered and approved by the Republican 
Budget Commission under the Government of the Republic of Kazakhstan. 
The financing is provided via the Ministry of Finance of the Republic of Kazakhstan to the 
relevant branch ministry.  The Ministry of Agriculture represented by the Budgetary Department jointly with a branch department administers a ll budget programs.  Each budget program has an 
individual mechanism of implementation. 
The information on financing from the state budge t is kept in the Budgetary Department of 
the Ministry of Agriculture. 
The allocated funds do not provide for the redi stribution of funds to consumers and do not 
provide pricing support to producers. 
The measures in the "Green Box" meet the re quirements of the Annex 2 of the Agreement on  
Agriculture; these measures are financed from th e state budget under the government program, not at 
the expense of consumers’ funds; the aim is not to provide pricing support to producers. 
Question 3 DS:2 Kazakhstan's submission should not include a Su pporting Table DS:2 since Article 6.2 is not 
available to them. 
Answer:
 
 The current state of agriculture continues to maintain negative tendencies in its development. 
From 1991 to 2000 the agricultural production level d eclined more than 2.5 times. The share of 
agriculture in GDP decr eased from 29.5 per cent to 8.6 per cent. Areas under crops diminished 2.1 
times from 1990 to 2001, the seed-growing system w as destroyed, the share of seed-stock till the 
fourth reproduction was reduced from 74 per cent in 1991 to 45 per cent in 1998. 
 Another problem is the breakdown of the system of yield protection from pests, diseases and 
weeds, which causes the loss of minimum 30 per cent of yield from biological potentials. 
 It is necessary to mention an unfavourable z oning of agriculture of Kazakhstan as well, its 
heavy dependence from natural-and-climatic factors.  WT/ACC/SPEC/KAZ/7 
Page 4  
 
  One of the main factors of the decline of the volume of agricultural production is the 
reduction of machinery as well as depreciation and obsolescence.  The technical facilities of 
agriculture make up from 40 per cent to 70 per cent of demand. 
 For the past ten years cattle breeding has passed  through the deepest crisis and decline.  The 
volume of cattle breeding production in 2000 was 55 per cent of the 1991 level. 
 Increase in price disparity among agricultural products and other products (by 1996 the prices 
of industrial products had grown almost  seven times faster th an agricultural ones).  The rise in the cost 
of agricultural products was not followed by pri ce increases for their sale b ecause of the population's 
low paying capacity, in fact since 1993 agriculture  has become unprofitable. In 1993 the share of 
unprofitable agricultural enterprises in the Republic ma de up 50.4 per cent, two years later their share 
increased up to 78.2 per cent and currently is higher. 
 The social aspect of all agricultural problems of the Republic is a considerable decline in the 
living standards of the rural population, which make up more than 44 per cent of the population of Kazakhstan. The poverty problem in th e villages has become most acute.  
 An assessment of the situation in agriculture wo rld markets enables to state that in the next 
ten years our agriculture will be under worst conditions  and be less effective than in other countries. 
 This will cause an increase in the share of imported goods on the food market of the country, 
which currently exceeds the index required for en suring food security, in accordance with FAO 
qualifications. 
 All these factors justify the extreme importa nce of various measures, targeted for the 
rehabilitation and development of agriculture of the Republic, rise of its efficiency with the view of 
supplying the population of the Republic with necess ary foodstuff, solving the food security problem 
and the development of the rural areas.  Realization of these measures is impossible without appropriate state support measures, first of all, pr eferential credits, granted on competitive basis to the 
most effective projects and the provision of agri cultural commodity producers with qualitative and 
high performance machinery, including support to small and medium business in the villages. 
Question 4 We request additional information on the pref erential credit agricultural machinery leasing 
programs, the subsidies for small and medium business, and state guarantees on external loans listed in DS:2 to better understand in which category of support these programmes fall under. 
Answer:
 
1. Credits for agriculture  
 A US$100 million loan agreement was signed be tween the Republic of  Kazakhstan and the 
Asian Development Bank (ADB).  This Agreement w as ratified by the Decree of the President of the 
Republic of Kazakhstan "On ratification of a Loan  Agreement between the Republic of Kazakhstan 
and Asian Development Bank" of 14 December 1995 No. 2685. 
 The loan was granted in two equal tranches of US$50 million each. Under the Resolutions of 
the Government of the Republic of Kazakhstan "O n measures for creating te rms for conclusion and 
realization of a Loan Agreement (Program Loan for agriculture) between the Republic of Kazakhstan 
and Asian Development Bank of 27 November 1995, No. 1599, "On measures for realization of 
Program Loan of Asian Bank of Development for agricultural sector" of 22 January 1996 No.74 and  WT/ACC/SPEC/KAZ/7 
 Page 5 
 
 
 "On realization of Program Loan of Asian Devel opment Bank for agricultural sector" of 25 July 1996, 
No. 928, for the first tranche of ADB Loan, the Ministry of Finance of the Republic of Kazakhstan on a competitive basis authorized credit lines by  three banks: OSC "Kazcommertsbank", OSC 
"Kazagroprombank" and CSC "Eximbank Kazakhstan". 
 On a competitive basis credits  were granted to agricultura l commodity producers for the 
procurement of processing technological equipment on a leasing basis. According to the projects the 
term is up to four years with interest  rate of 9 per cent per annum, including: 
− remuneration of the Ministry of Finance of  the Republic of Kazakhstan – seven per cent; 
− margin of involved banks – two per cent. 
 In 1996-1997 US$44.4 million of the first tran che funds were used, 88 minitechnologies on 
agricultural products processing were procured, incl uding: 50 mills, seven bakeries, five meat 
processing lines, ten milk processing and juice prod uction lines, macaroni production lines and six 
minitechnologies of other kinds of goods.  About 1,200 additional jobs were created. 
 Under the Resolution of the Government of  the Republic of Kazakhstan of 17 March 1998 
No. 227 "On measures for realization of Program Loan of Asian Development Bank for agricultural 
sector" and "On some issues of realization of Program Loan of Asian Development Bank for agricultural sector" the allocation of the second tranche funds of ADB Loan in the amount of 
US$50 million was carried out by the agents of the Ministry of Finance of the Republic of Kazakhstan 
CSC "Small business development Fund" (F und) through the authorized banks. 
 On the basis of the agent’s agreement with the Ministry of Finance and the Ministry of 
Agriculture of the Republic of Kazakhstan of 1 September 1997 as well as credit agreement with the 
Ministry of Finance of the Repub lic of Kazakhstan and the authori zed banks, the Fund proceeded to 
the allocation of the second tranche of ADB Loan since 19 September 1997. 
 Under the Resolution of the Government of  the Republic of Kazakhstan of 17 March 1998 
No. 227 "On measures for realization of Program Loan of Asian Development Bank for agricultural 
sector" the Loan funds are assigned for the procur ement of equipment for agricultural commodities 
production and processing, agricultura l machinery for machine-technological stations, the creation of 
wholesale food markets and other market infrastruct ures, designed for agricultural products as well as 
the financing of required capital assets.  
 The authorized banks are: OSC "Bank CentrCredit", OSC "Tsesna bank", OSC 
"Kazagroprombank", OSC "Irtyshbusinessbank", OSC "Gasprombank", OSC "Kazkommertsbank", OSC "Business bank", OSC "Bank TuranAlem", OSC "Kazakhstanskyi internationalnyi bank", OSC 
"Astana-Finance", OSC "Temirbank" and OSC "Komirbank". 
 Credits were granted to the final borrower through authorized banks in US$ only against 
guarantees on the following conditions: 
− credit term – five years, preferential period up to two years depending on the credit term; 
− rate of remuneration – up to 11 per cent pe r annum, including the remuneration to the 
Ministry of Finance seven per cent and remuneration to the Fund 0.3 per cent;  
− up to 60 per cent of the amount of credit may be used for the replenishment of current 
assets under the project. 
 Since the second tranche realization of ADB loan 63 projects in the total amount of 
US$41 million has been financed.  Within the fra mework of the second ADB tranche 17 mills, two 
lines for bread and bakery production, three lines for spirits production, four lines for mineral water WT/ACC/SPEC/KAZ/7 
Page 6  
 
 and beverages production, six lines for meat proces sing, five lines for dairy production have been 
procured, four projects on agricultural technique procurement, seven lines for package and wrapping 
for food industry and 13 lines for other kinds of goods production have been financed. 
 Funds, incoming on account of granted earlier credit repayment, are directed by the Fund for 
the financing of new projects. 
2. State guarantees on foreign loans
 
 The issue of state guarantees on non-state forei gn loans for agricultural projects financing is 
related to the measures for support of agriculture.  In 1996 guarantees were issued for credit security 
for procurement of grain harvester and cotton harv ester machines. In 1997, 1978 state guarantees for 
agricultural sector projects were not issued. 
 Today foreign loans have a specific purpose (Project of the World Bank on irrigation and 
drainage, post-privatization support of agriculture).  
3. Leasing  
 In 1996-1997 funds for leasing in agriculture were allocated by the Leasing Commission 
under the Ministry of Agriculture in conformity with the "Temporary order of an agroindustrial 
complex provision with the machine-buildin g production on a leasing basis (agroleasing)" 
(Temporary order) without granting a loan guarantee by the lessor.      
 The Temporary order was elaborated on the basi s of the Resolutions of the Government of the 
Republic of Kazakhstan of 23 December 1995 No . 1851 "On organization of provision of 
agroindustrial complex with machine-building products on the basis of leasing" and of 
29 January 1996 No. 117 "On setting up of a leasing  fund for agroindustrial complex provision with 
machine-building products" prior to the adoption of the Law of the Republic of Kazakhstan "On 
financial leasing". 
 In 1998 the leasing of agricultural equipment was carried out under the Resolution of the 
Government of the Republic of Kazakhstan of 15 April 1998 No. 341 "On approval of the Order and 
terms of leasing in agriculture". 
 For the realization of the leasing program in agriculture the Ministry of Finance and the 
Ministry of Agriculture involve as an agent the St ate Fund of Financial Support to Agriculture. This 
fund in relation with the subjects of leasing acts as a representative of the Ministry of Finance and the Ministry of Agriculture and carries out their financ ial and production-and-technology policy, controls 
its targeted use and the repayment of funds.     
 In 1996-1997 in conformity with the Tem porary order, leasing contracts with the leasing 
recipients on machine-building production for up to  0.5 million Tenge per unit were concluded for the 
term up to three-four years and those exceeding 0.5 million Tenge for five years and were to cover: 
− amounts of payments (initial and subsequent), periodicity of repaymen ts as well as terms 
of leasing payments; 
− compulsory transfer of the ownership of m achines and equipment to the leasing recipient 
upon making all payments stipulated by the c ontract and upon expiry of the date of 
leasing contract; 
− manufacturing plants (suppliers), technical re pair and technical enterprises, agricultural 
suppliers, technical centers and other organi zations carrying out technical maintenance 
and machines and equipment repairs, duri ng the guarantee and post- guarantee period;  WT/ACC/SPEC/KAZ/7 
 Page 7 
 
 
 − payment by the leasing recipient of the est ablished cost of the machine-building 
production at the rate proportional to the period of leasing, as well as payment to the 
lessor of 2.5 per cent of the balance of the cost annually, insurance payment 2.5 per cent 
in case of conclusion of an insurance agreem ent by lessor with leasing recipient, extra 
charge to lessor up to eight per cent (single payments upon receipt of equipment), 
four per cent single payments for leasing fund replenishment; 
− guarantees of payment of subsequent leasing ch arges which shall be presented to lessor. 
 In 1998 the leasing of agricultural equipmen t was identical to 1996-1997, excluding the 
amounts of leasing payments: 
− remuneration to the Fund up to one per cent of leasing cost, single payment upon receipt 
of the equipment; 
− extra charge to lessor up to seven per cent from the cost of leasing, single payment upon 
receipt of the equipment. 
 Annual leasing payment was calculated according to the formula: 
P + K + C + R – O P + O 
L  =  --------------------------  =  --------- + k + c + r y     y 
 
− L – annual leasing payment; 
− P – procurement cost of leasing object; 
− K – amount of payments for credit; 
− C – amount of insurance payments; 
− R – amount of repair payments; 
− O – balance cost of object at the expiry of a leasing date; 
− y – number of years of rent term; 
− k – annual payment for credit; 
− c – annual insurance payment; 
− r – annual payment for repair and maintenance. 
 1996-1997.  Thirty agricultural entities received  agricultural leasing in the total amount of 
1,248.6 million Tenge. 
 1998.  Under the Law "On republican budget" for 1998 and pursuant to the Resolution of the 
Government of the Republic of Kazakhstan of 15 April 1998 No. 341 "On approval of the Order and 
terms of leasing organization in agriculture" th e Ministry of Agriculture of the Republic of 
Kazakhstan conducted a tender for the right to par ticipate in State program of leasing of 1998. 
 Five organizations (SC "Alibi", LTD "E xportastyk-Akmola", LTD "Agrotrade", LTD 
"Eximnan", OSC "Kazakhstani-Russian regional leasi ng center") became winners of the tender for the 
right to participate in the State program of leasing of 1998. 
 Under the terms of the leasing program quotas were granted to lessors according to the 
decision of the Leasing Commission of the Ministry of Agriculture of the Republic of Kazakhstan 
provided they gave bank guarantees. The lessors  purchased at their own expense and provided 
machinery to farms.  On the basis of reports of  acceptance of agricultural machinery and the bank 
guarantees from the Republican Budget their expen ses were reimbursed with the guarantee of their 
repayment to the Fund. WT/ACC/SPEC/KAZ/7 
Page 8  
 
  In conformity with the Agreement of 5 May 1998 No. L-98/1, concluded between the 
Ministry of Finance of the Republic of Kazakhstan,  the Ministry of Agriculture of the Republic of 
Kazakhstan and the Fund, 529,100 Tenge were allo cated to the latter from the Republican Budget, 
repayable in five years. 
4.  Financial assistance to small and medium businesses in the rural areas
 
 The allocation of funds for rendering financia l aid to small and middle business were made 
through the “Fund for the Support to Small Ente rprises” and the “Fund for Financial Support to 
Agriculture”. 
 According to the Decree of the President of the Republic of Kazakhstan of 7 July 1997 
No. 3589 "On priorities and regional programs of support and development of small enterprise in 
Kazakhstan", the objectives were:  the setting up of new and development of the production of 
consumer goods, the development of fu rther processing of agrarian products. 
 For the purpose of implementation of this Decr ee the Fund for the Support of Small enterprise 
carried out credit projects for small and middle bus iness enterprises in the villages on tender basis. 
 In conformity with the "Order of resources payment from the State Fund for Financial 
Support of Agriculture" approved by the Republican Interdepartmental Council of the State Fund for 
Financial Support to Agriculture on 25 March 1996 financial assistance to the following small and 
middle businesses was provided. 
1) Peasant farms and farmsteads have the right to obtain funds, designed for the development of 
small and medium businesses in the village, on a repaya ble basis. Funds are allocated for a term up to 
five years with reduced interest rates.  
2) Funds for the development of small and me dium businesses in the village are granted for: 
− the introduction and mastering of new technologies of agricultural production; 
− the purchasing of tractors, agricultural machines, lorries; petroleum products; seeds, 
fertilizers, herbicides, pesticides, veterinary preparations; 
− the purchasing of breeder cattle; 
− other purposes related to raising the produ ction and sale of agricultural products. 
3) The allocation of funds for the development of  peasant farms and farmsteads is effected on a 
competitive basis by the decision of the Interdep artmental Council of the Fund for Financial Support 
of Agriculture under the Ministry of Agricultu re of the Republic of Kazakhstan (Fund). The 
Interdepartmental Council works out the terms of a tender. 
4) The entity, willing to participate in a tender submits an application to the Fund. 
 The following documents are attached to an application: 
− a copy of a document certifying the right to land; 
− foundation documents and a certificate of state registration of the entity; 
− a business-plan; 
− agreements or contracts for the delivery of an equipment, the realization of raw and 
finished products and others; 
− a certificate of a tax inspection of payments due; 
− a certificate of bank indebtedness;  WT/ACC/SPEC/KAZ/7 
 Page 9 
 
 
 − pledge or guarantee. 
5) The Fund registers the applications submitted,  organizes their consideration, introduces its 
offers for consideration by the Interdepartmenta l Council of the regional affiliate of the Fund. 
6) The Interdepartmental Council adopts the deci sion of refusal or determines the amount of 
financial backing, the terms of use of the funds and informs about the decision adopted. 
7) The Fund exercises control over the u se of the funds and their repayment. 
8) The Fund may grant funds for peasants training in managing methods in market conditions, to 
facilitate the process of creation and development of farmsteads and peasant farms and support of 
agricultural entrepreneurs. 
Question 5 
DS:4 and DS:9 
The Government of Kazakhstan includes Income Tax Breaks, Rescheduled Arrears and 
Forgiven Debt in its calculation of  the total AMS in DS:4 and DS:9. 
We do not believe these programs meet the criteria for inclusion in the AMS calculation. Please 
submit a revised DS:4 and DS:9. 
Answer:  
 In conformity with Annex 3 of the Agreemen t on Agriculture, subsidizing takes place, among 
others, in the case when the government revenue is foregone or not collected.  Hence, tax exemptions, 
deferred and remitted debts were included in th e calculation of the total aggregate index of 
agricultural support. 
Question 6 
In keeping with the conventional methods adop ted for other accessions we believe that "Income 
tax breaks" and "VAT breaks" should be exclude d from the calculation of AMS.  Kazakhstan 
needs to provide more information about the "Rescheduled arrears" and "Forgiven debts", 
specifically with respect to how the schemes operat e, eligibility criteria and the time period for 
rescheduling.  What steps is Kazakhstan taking to reduce/avoid the recurrence of bad debts in 
the future? 
Answer:  
In conformity with Annex 3 of the Agreemen t on Agriculture, subsidizing takes place, among 
others, in the case when the government revenue is foregone or not collected.  Hence, all tax 
exemptions, were included in the calculations of th e total aggregate index of support of agriculture. 
However, in spite of tax exemptions granted, the financial state of agricultural enterprises is 
complicated.  The strengthening of prices disparity  between agricultural pr oducts and products of 
other branches (by 1996 the prices for industrial pr oducts have increased almost seven times faster 
than for agricultural ones), the in crease in the cost of agricultura l products, the objective impossibility 
of increasing prices because of the low income of the population lead to the fact, that since 1993 
agriculture has become unprofitable.  In 1993 the sh are of unprofitable agricultural enterprises in the WT/ACC/SPEC/KAZ/7 
Page 10  
 
 Republic was 50.4 per cent, after two years their shar e had increased to 78.2 per cent and currently is 
higher. 
Kazakhstan is located in the zone of risky farm ing agriculture.  As a whole, the bioclimatic 
agricultural zone potential of Kaza khstan is 2.7 times lower, than in North America or Western 
Europe.  The quality of arable land is relatively lo w.  Out of 35 million ha only 7.3 million ha have 
more than 50 units site class, allowing to cultivat e efficiently agricultural crops.  8.9 million ha of 
agricultural crops have more than 35.6 site class,  i.e. higher than the average Republican, which 
guarantees quite good yield in favorable years.  Th e state of arable land and its quality has been 
sharply decreased over the years.  
All this leads to the chronic indebtedness of agricultural commodity producers, including both 
credits and indebtedness on petroleum pr oducts, electric power, taxes and etc. 
The Government of Kazakhstan undertakes certai n measures for the financial improvement of 
agriculture, carrying out on a permanent basis an inventory of debts of agricultural commodity 
producers and their periodical restructuring. 
The Resolution of the Government of the Re public of Kazakhstan of 17 May 1996 No. 651 
provided the writing off indebtedness under interests, fines, penalties on credits and 50 per cent of the 
primary debt on centralized and directive credits, granted against the guarantee of the Ministry of 
Finance and regional administrations as of 1 March 1995. 
In conformity with the amendments of 29 March 2000 (Law No 8470) to the Law of the 
Republic of Kazakhstan "On taxes and other obligatory payments to the budget" of 24 April 1995 
No. 2235 (Article 179) the terms of  payment of taxes and penalties existing on 1 January 2000, were 
extended for a period of three years, without penalty calculations for agricultural commodity 
producers, legal and natural persons. 
As of 1 January 2003 the term of the deferm ent granted expires and the question of the 
replenishment of the budget arose, at the initiativ e of the Parliament a joint commission of the 
chambers of the Parliament and the Government fo r working out of a mechanism of writing off debts 
was created and the following decisions were taken: 
− on rendering one-time financial assistance to entities, engaged in pedigree seed growing 
and pure-strain stock-breeding with a view to  the reimbursement of the indebtedness due 
to the budget; 
− operating agricultural enterprises, granted tax de ferment, shall pay within five years the 
existing indebtedness, by equal shares, beginning from 2003. 
With a view to the reduction/avoidance of debts of agricultural commodity producers a 
number of steps are being undertaken: the requirement s to pledge guarantees, the tax offices are being 
strengthened, recovery by enforcement measures is  being provided, penalt y calculations are being 
applied. 
Question 7 
ES:1 Given Kazakhstan's ES:1 table, again we request Kazakhstan to confirm that it will not use 
export subsidies in the future.   
Supporting table ES:1 identifies internal transportation subsidies.  WT/ACC/SPEC/KAZ/7 
 Page 11 
 
 
 We would like to point out that this form of subs idy is allowed only as a special and differential 
provision to developing countries and request in formation from Kazakhstan about its plans to 
eliminate this prohibited export subsidy in the context of WTO accession. 
Answer:  
 The share of animal and plant products in total exports has a tendency to decrease and 
fluctuated in the last years at the rate of eight-ten  per cent of total exports. At the same time, grains 
make more than one half of agricultural exports .  In some years Kazakhstan exported 10-12 million 
tons of grain, in 2000 exports were only 4.9 million tons. 
 The geographic location, the lack of access to sea and the large territory of Kazakhstan do not 
favour competitiveness in some kinds of products. 
 Consequently, an important support for agricu ltural products are railway tariffs discounts for 
the transportation of a number of agricultural products. 
 By Resolution of the State Committee on Pricing and Antimonopoly Policy (No.3/56 of 
23 March 1996) 30 per cent reduction were introduced  to the tariffs for transporting agricultural 
products and food products. 
 Currently the medium-term policy of Kazakhstan in  the field of agriculture, as specified in the 
State agricultural program for 2002-2005, approved by the Decree of the President, stipulates the 
following support for exporters of agricultural products: 
− transportation discounts for export by railway transport within the country and repayment 
of tariff difference in transit transportation; 
− a scheme of export credits via the Development Bank of Kazakhstan with guarantees of 
the state is being studied. 
Question 8 
Kazakhstan claims direct export subsidies on wheat in 1997 and 1998 as well as internal 
transport subsidies (indirect export subsidies) on  18 products.  These export subsidies did not 
exist until 1997.  We requested that at the agriculture plurilateral meeting Kazakhstan provide more information about these export subsidi es (legislation, implementation date, the 
administrative aspects, how the subsidi es are provided and how they are paid). 
We asked Kazakhstan to explain in writing the na ture of export subsidies on wheat.  Where and 
how were wheat exports subsidized? We need  the publication of the budget expenditure, 
specifically we need to see the calculation of th e "Direct export subsidies" for 7,850,015 for 
wheat in 1998, for example. 
Answer:
 
 According to the Resolution of the Government of the Republic of Kazakhstan of 
5 October 1998 No. 998 "On some measures for grain procurement and support of agricultural 
commodity producers" funds were allocated to CSC "Food Contract Corporation" and grain companies – agricultural commodity producers for th e procurement of one million tons of food grain 
and seeds of cereal crops on the domestic market at fixed price under the franco-elevator terms for realization on foreign market. WT/ACC/SPEC/KAZ/7 
Page 12  
 
 The following requirements were put forward for the participation in the procurement 
program by agricultural commodity producers: 
− availability of accepted guarantees of security of return of credit resources; 
− availability of own agricultural production. 
Agricultural commodity producers, who expr essed the willingness to participate in the 
program of grain procurement, submitted the following documents to the Interdepartmental 
Commission: 
− an application for participation; 
− statutory and foundation documents, attested notarially; 
− a certificate of state registration of a legal person and a card of statistics register; 
− a certificate of local tax inspection of lack of  overdue debt due to the budget of all levels; 
− a guarantee letter of a bank. 
Additional information is under preparation. 
Question 9 
How were "internal transport subsidies" estimated ? Does this apply only to exported product? 
We need an explanation of the document "Doc umentation of Anti-monopoly Committee" from 
Kazakhstan, possibly with a copy in English. 
Answer:
 
While making calculations of domestic trans port subsidies the size of subsidizing is 
accounted only for the products, which were sent for export, mainly, to the CIS-countries. 
The share of animal and plant products in to tal exports has a tendency to decrease and 
fluctuates over the last years at the rate of eight-ten per cent of total exports.  At the same time, grains 
make more than half of agricultural products.  In some years Kazakhstan exported 10-12 million tons 
of grain, in 2000 exports were only 4.9 million tons. 
The geographic location, the lack of access to th e sea and the large territory of Kazakhstan is 
not favorable to the competitiveness of some products. 
Consequently, an important support of agricultu ral products are railway tariffs discounts for 
the transportation of a number of agricultural products. 
The Resolution of the State Committee on Pricing and Antimonopoly Policy (No.3/56 of 
23 March 1996) established 30 per cent reduction ra tios to tariffs for transporting agricultural 
products and food products. 
Currently the medium-term policy of Kazakhstan in  the field of agriculture, specified in State 
agricultural program for 2002-2005, approved by the Decree of the President, establishes the 
following support for agricultural products exporters: 
− transportation discounts for export by railway transport within the country and repayment 
of tariff difference in transit transportation; 
− a scheme for granting export credits via the Development Bank of Kazakhstan with state 
guarantees is being studied.  WT/ACC/SPEC/KAZ/7 
 Page 13 
 
 
 APPENDIX 1 
Green Box Measures  
 Paragraph 2a - Research relating to the de velopment and testing of new seed varieties, 
research in the field of new technologies.  
 While compiling this section clauses 1 and 2 of Attachment 2 of the Agriculture Agreement 
were used. In particular: "Government programs for provision of services (services of general 
character): ..... (e) inspection services, including ove rall inspection services and check-ups of separate 
products for the purpose of health protection, food security, sorting by quality or standards". 
 Funds included in this section were disbur sed by the Republican Seed Inspection and State 
Commission on Testing of Seed Varieties.  Thes e institutions fully depe ndent on the budget, with 
their main activity being research on the development of new seed varieties that meet the criterion of 
highest productivity and adaptation to local conditions. 
 Republican seed inspection  
 The given state institution has been functioning on the basis of the Regulation on State Seed 
Inspection of the Ministry of Agriculture (hereina fter referred to as Inspection). At present, the 
Inspection is reorganized into the "Kazsemexpertiz a" Republican State Enterprise having the right of 
an independent economic management under the Mi nistry of Agriculture of the Republic of 
Kazakhstan (Government Decree No. 252 of 17 Marc h 1999 "On reorganization of Republican State 
Seed Inspection of the Ministry of Agri culture of the Republic of Kazakhstan"). 
 The State seed inspection comprised the following bodies:  
− Republican seed inspection; 
− Regional state seed inspections; 
− Rayon (sub-regional) and territorial state seed inspections. 
 The inspection had the functions of the interdep artmental state control of the quality, storage 
and preparation for sowing of seeds of crops at agri cultural enterprises; their compliance with the state 
standards in regards of seeds and observance of th e instructions of the Ministry of Agriculture 
concerning improvement of work on crop-farming and seed control. It also carried out supervision 
and documenting of sowing qualities of seeds of all crops. 
 Description of the Inspection activity: 
− Management of subordinate seed insp ections and control of their work; 
− Maintenance of correct indication of seed quality of all crops and registration of 
documentation on them; 
− Organization of control as to the compliance of grading and sowing qualities of seeds 
with State standards by farms and storage or ganizations as well as the quality control of 
highly reproductive seeds realized with the purpose to change and update varieties; 
− Methodical management of site soil and variety control; 
− Analysis of activity of inspections and assistance rendered to improve their work; 
− Provision of updated laboratory equipment to subordinated organizations pursuant to the 
scheme of technological process for defining sowing qualities of seeds, seed storage and 
means for its mechanization as well as the introduction of automatic seed analysis; WT/ACC/SPEC/KAZ/7 
Page 14  
 
 − Participation in developing th e design of the State Standards pertaining to seeds as well as 
the rules and recommendations for the prep aration of seeds to sowing, storage and 
registration of the documentation on them; 
− Generalization and introduction of the advan ced experience. Review and introduction of 
rational proposals on seed testing business; 
− Proposals as to the increase of  seed quality and the improveme nt of work of subordinated 
network of seed inspections; 
− Maintenance of arbitrary, supervisory, compar ative seed analysis and judicial expertise; 
− Maintenance of tentative and research work  on seed control. Development of new and 
improvement of the evolving methods for defining quality of seeds. 
 Financing. Republican and regional state seed in spections were maintained at the cost of the 
Republican budget, and rayon, municipal and territori al state seed inspections at the cost of the 
regional budget. 
 State seed inspections provide reports on e xpenditure of budget funds according to the 
common order set for budgetary organizations. 
 Since the Republican seed inspection have been  reorganized into the RSE "Kazsemexpertiza" 
control of the quality, storage and preparation to so wing of crops at agricultural enterprises and their 
compliance with state standards pertaining to  seeds has been made a voluntary procedure. 
 RSE "Kazsemexpetiza" executes a public cont ract under the program 37 entitled "Definition 
of variety and sowing qualities of seeds and planting stock" at the cost of the Republican budget. 
 The public contract under the Program 37 is aimed at defining variety and sowing qualities of 
seeds and planting stock of the state resources of grain seeds at elite seed-breeding farms, quality testing sites and stations.  An ultimate goal of th e Program is to provide high-quality graded seeds and 
planting stock to agricultural producers to increase th e yield of crops and maintain food safety of the 
country. 
 State commission on quality testing of crops
 
 The State Commission on quality testing of crops of the Ministry of Agriculture of the 
Republic of Kazakhstan (hereinafter referred to as – State Commission)  is an official body, a member 
of economic and organizational mana gement, financing material suppor t. It carries out scientific and 
methodical control and planning of state quality testing in the Republic of Kazakhstan. It is 
functioning on the basis of the "Regulation on State Commission for quality testing of crops of the 
Ministry of Agriculture of the Republic of Kazakhstan". 
 The State Commission, regional inspections for state testing, state trial stations, state quality 
testing sites, laboratories for qualitative assessment of  varieties tested, all form a single state service 
for testing of varieties and hybrids of crops. 
 The State Commission has the status of an independent organization and is subordinately 
dependent. It carries out a single policy in the fi eld of state quality testing in the Republic. The 
purpose of the State Commission is to provide objective estimation of the new varieties of crops of domestic and foreign selection to define the best am ong them to disseminate in regions and apply in 
production. 
 The main objectives of the State Commission are as follows:  WT/ACC/SPEC/KAZ/7 
 Page 15 
 
 
 − Maintaining a single policy in the field of testing of varieties and hybrids of crops and 
improvement of variety resources in the Republic; 
− Establishment of information technologies and da tabase in regards of testing of varieties 
and hybrids of crops; 
− Maintenance of effective functioning of a singl e state service on testing of varieties and 
hybrids of crops; 
− Economic and organizational activity and guidance of subordinated enterprises, 
institutions and organizations; 
− Maintenance of the international collaboration in the field of testing and utilization of 
selection achievements. 
 Main functions of the State Commission: 
− To review and approve experi mental and production work in regions of the Republic of 
Kazakhstan; 
− To organize state testing and expert assessment of varieties and hybrids as to their 
usefulness; 
− To accept applications for new varieties and conduct assessment and testing. To maintain 
a register of the new regional varieties of crops around the Republic and to issue 
certificates for the selection evidences; 
− To conduct proof test and survey of varieties and hybrids, included in the Catalogue of 
the regional varieties of crops of the Republic of Kazakhstan; 
− To supervise experimental and production an d economic and organizational activity of 
regional inspections, state variety stations a nd state variety fields, their compliance with 
state methodology of quality testing and a pplication of zonal system of farming; 
− To assess the quality of production of varieties tested at republican and regional 
laboratories, etc. 
 Funds of the state budget are the source of fi nancing of activity of the State Commission and 
its subordinate enterprises, institu tions and organizations as well as fees for the services and material 
provided. 
 Paragraph 2b - Measures taken against pest s and diseases endangering crops and livestock.  
 Clauses 1 and 2 of Attachment 2 of the Agricu lture Agreement were used to compile this 
section. Particularly: "Government programs for the provision of services (Services of general 
character):... (b) pest control and combating diseases, including general methods of combating pests and diseases. Example, system of earlier warning, quarantine and destruction." 
 Veterinary
 
 During 1996 – 1998 the following recipien ts obtained funds from the Republican budget: 
− The Veterinary Committee of the Ministry of Agriculture of the Republic of Kazakhstan; 
− Regional veterinary committees (having the ri ght of a legal person) of the Veterinary 
Committee of MOA; 
− Regional veterinary laboratories (having the ri ght of a legal person) of the Veterinary 
Committee of MOA; 
− "Republican veterinary laboratory" state institution; 
− "Republican office for combating an imal diseases" state institution; 
− The South-Eastern zonal specialized veteri nary laboratory for combating dangerous 
diseases of livestock and poultry; WT/ACC/SPEC/KAZ/7 
Page 16  
 
 − Central directorate of state veterinary inspectorate on the boundary and transport of the 
Veterinary Committee of MOA and its terr itorial boundary and transport veterinary 
checkpoints and posts. 
 Functions of the Veterinary Committee of MOA: 
− Licensing of veterinary activity; 
− Monitoring, forecasting, developing of programs for preventing and eliminating animal 
diseases; 
− Drawing up the list of especially danger ous contagious diseases of animals and 
submitting it for authorization by the Government; 
− Interacting with members of sanitary – ep idemiological supervisory body to protect 
population from diseases that are common to animal and human beings. Prevention of poisoning with animal production;  
− Realization of state veterinary supervisi on on import, export, transit and delivery of 
products and raw material of animal produc tion within the republic as well as forage, 
chemical-pharmaceutical medication and other loads under control. Control over animal;  
− Issuance of registered certificates on dom estic and imported vete rinary medication, 
devices, tools, fodder addends as well as perm ission for their production and application; 
− Making proposals as to the size of funds allocated from the republican budget to conduct 
veterinary, preventive, anti-epizootic and sanitation measures; 
− Carrying out of the other functions foreseen by the legislation of the Republic of 
Kazakhstan. 
 Functions of the regional veterinary committees: 
− Development and realization of veterinary , preventive, sanitary and anti-epizootic 
measures on regional scale; 
− Oversight of measures aimed at preventing and eliminating animal diseases on regional 
scale. Production of safe products and raw material of animal origin from the point of view of veterinary and sanitary; 
− Study and analysis of epizootic and epidem iological condition pertaining to the sickness 
rate of human beings and animals with especially dangerous diseases; 
− Control over the proper veterinary and sanita ry, quarantine and restrictive procedures at 
livestock-breeding enterprises, poultry factories and other economic bodies; 
− Interaction with the other bodies of sanitary and epidemiological supervision to protect 
population from diseases common to human  beings and animals. Prevention from 
poisoning with livestock production; 
− Licensing of veterinary activity within the competence; 
− Instructing all legal and physical persons as to the slaughtering, separation or destruction 
of animals in case of their contamination w ith dangerous contagious diseases according to 
the list authorized by the Government of the Republic of Kazakhstan; 
− Setting the order for conducting veterinary  and sanitary examination of livestock 
production and raw materials; 
− Suspension of exploitation of livestock farm s, dairy and meat producing enterprises, 
processing, storing and sales of livestock production and raw materials before necessary 
veterinary and sanitary, anti-epizootic meas ures are done; the other functions foreseen 
under the legislation of the Republic of Kazakhstan. 
 Functions of the regional veterinary laboratories: 
− Methodical guidance of activity of regional veterinary laboratories;  WT/ACC/SPEC/KAZ/7 
 Page 17 
 
 
 − Realization of seminars, training on laborat ory businesses for the workers of regional 
veterinary laboratories and rendering of practical assistance to them; 
− Testing (approbation) of a new diagnostic, pr eventive, medical means and methods and 
other laboratory equipment; issuance of opinion on them; 
− Laboratory research of materials which have been forwarded from the other laboratories 
by the regional laboratories, if necessary; 
− Maintenance and summary of reports submitted by the sub-regional veterinary laboratory; 
− Consulting and practical assistance to vete rinary organizations and other managing 
subjects; 
− Execution of the other works on the assignment of a higher-ranking veterinary 
establishment. 
 Functions of the "Republican veterinary laboratory" State Institution: 
− Improvement of methods of diagnostics of animal diseases; study and summary of 
achievements of science and advanced expe rience in range of laboratory business; 
− Participation in realization of industrial tests of new diagnostic, preventive, medical 
means and methods; 
− Study of the status of the state network of  veterinary laboratories and proposals on its 
improvement; 
− Recording of all current procedures and rules of laboratory diagnostics in the republic; 
− Development and improvement of the form of veterinary reporting in veterinary 
laboratories; 
− Study of veterinary laboratories’ need in  equipment and other accessories of laboratory 
purpose; 
− Realization of state control over the productio n and the quality of veterinary medication 
and their compliance with standards, specifi cations and instructi ons on manufacturing and 
control in accordance with the procedure set forth; 
− Execution of other works on the assignment of the higher-ranking veterinary institution. 
 Functions of the State Institution "R epublican office for animal diseases": 
− Study and analysis of epizootic status of livestock breeding. Development and realization 
of the appropriate operative measures on prevention and liquidation of contagious, 
invasive and non-contagious diseases based on the data obtained; 
− Supervision of veterinary and sanitary st atus of livestock-breeding objects, poultry 
factories, farms and other types of economies, enterprises of meat and dairy production, enterprises for storing and processing of products and raw material of livestock production. Oversight of their compliance w ith the requirements of the Decree of the 
President of the Republic of Kazakhstan "On ve terinary" having the right of the Law, and 
decrees, orders, decisions of higher-ranking organizations on prevention and control of 
animal diseases; 
− Control of the execution of plans of preventiv e, veterinary-sanitary and anti-epizootic 
measures, and observance of quarantine and restrictive measures, timely realization of measures; 
− 
Participation in production tests of medical, pr eventive, disinfectants, and other veterinary 
accessories used in veterinary practice, introduction of achievements of science and 
advanced experience, promotion of knowledge  in the field of veterinary; execution of 
other works on the assignment of a hi gher-ranking veterinary institution. 
 Functions of the Southeast zonal specialized veterinary laboratory dealing with especially 
dangerous animal and poultry diseases: WT/ACC/SPEC/KAZ/7 
Page 18  
 
 − diagnostic research of dangerous diseases of an imals and poultry, indication of origin of 
exotic and especially dangerous diseases of animals and poultry registered in the Republic 
of Kazakhstan; methodical, advisory support to  veterinary bodies and other organizations 
in solving questions that are connected with  diagnostics, organization and realization of 
measures to prevent and liquidate especially dangerous diseases of animals and poultry in 
the frontier zone of the Republic of Kazakhstan; 
− Participation in organization and realization of training on elimination of pesthole of 
especially dangerous diseases of animals and poultry jointly with the other organizations and institutions of the state veterinary network; 
− Review the epizootic situation and veterinary -sanitary status of inhabited areas in the 
frontier zone of Kazakhstan as to the presence of especially dangerous diseases of animals 
and poultry. Interrelation with the veterina ry services on places and frontier veterinary 
stations promoting preventive measures agai nst especially dangerous diseases of animals 
and poultry. Constant supervision of flight of birds and migration of wild animals; 
− Forward staff to select samples to be studie d according to the schedule and in emergency 
cases (depending on the epizootic situation) as well as epizootic investigation of farms, 
enterprises and environs. 
 Functions of the Head division of the stat e veterinary supervision on the boundary and 
transport of the Veterinary Committee of the MOA and its territorial boundary and transport 
veterinary checkpoints and posts: 
− Organization and realization of the state ve terinary control of the importation in the 
Republic of Kazakhstan and exportation of all cargoes under control as well as the 
transportation within the republic; manageme nt of activity of boundary and transport 
veterinary checkpoints and posts and of the other sub-divisions and institutions while 
carrying out state veterinary supervision and sanitary-veterinary measures; 
− Participation in the developmen t of norms of technological d esign of disinfecting barriers, 
sanitary stations and other special premises. Compliance with the requirements of sanitary and veterinary in the design of the indica ted premises and duri ng their construction; 
− Notification of a higher-ranking organization in case of detection of infected animals, 
suspicious and lethal cases a nd other violations of the veterinary legislation; 
− Control of compliance with the veterinary le gislation, instructions regulations by the 
export trading organizations, institutions, enterprises and separate citizens concerning 
importation and exportation of cargoes under the control of the state veterinary 
supervision; 
− Finalization of the issues concerning the state veterinary supervision on the boundaries 
and transport in close connection with the inte rested services of the ministries, institutions 
and other managing bodies as well as the local executing bodies. 
 The allocation of the budget funds for veteri nary service in 1996-1998 years was conducted in 
the Ministry of Finance of the Republic of Kaza khstan according to the significance of subjects. 
 Since 1999 the budget funds are distributed according to the passport of the budget program.  
Plant quarantine
 
 During 1996-1998 measures on plant protection and quarantine were conducted through the 
Republican station for plant protection and the Head State Inspection for plant quarantine at the cost 
of the republican budget. 
 The functions of the Republican station for plant protection comprised the following:  WT/ACC/SPEC/KAZ/7 
 Page 19 
 
 
 − determination of annual and perspective need in chemical, biological and other means of 
plant protection, and also in special machines and equipment to protect plants given the directions of development of seed-farming and forecast of dissemination of harmful 
objects, as well as the ecological requirements on protection of environment and human health; 
− organization of regular oversight of appear ance, dissemination and development of the 
pests, diseases and weeds, providing agricultu ral bodies with the short-term and long-term 
forecasts; 
− maintaining records of receipt and consumpti on of chemicals in the republic. Review and 
approval of the application for pesticides give n the current regulations as to their use; 
− adoption of measures to prevent and disclo se mass cases of epiphitoty of crops; 
− identification of chemicals prohibited for use or out-of–date, writing them off and control 
of their land disposal; 
− analysis of contamination of sowings, dissemination of pests and diseases. Proposals on 
effective and safe methods of control; 
− estimation of a need in funds to control p ests and diseases conducted at the cost of the 
state budget (locust, gopher, potato beetle, tu rtle bug, rust and septoriosis of grain 
cultures), allocation of these funds and organization of their target use; 
− informing land users as to the terms of appearance, state of development of harmful 
organisms and necessary measures to control them; 
− assistance to land tenants in the organization of safe and effective use of pesticides. 
 The functions of the Head state inspecti on on plant quarantine included the following: 
− development of quarantine conditions for the delivery of plants and other materials from 
the other states, transportation of this produc tion within the republic, rules and conditions 
for their use; 
− quarantine examination and laboratory examinati on of the plants delivered in the republic 
from the other states or exported and of other materials that can transmit pests, diseases of plants and weeds, including transportation of plants in luggage, by mail and in hand luggage of the passengers, and also coming in the republic from the other states; 
− organization of improvement and decontamin ation of the above-indicated production, as 
well as of transport arriving from the othe r states and from the zones under quarantine; 
− development of methods of quarantine ex amination, laboratory examination and 
diagnostics of hidden infection of seeds, pl ants and phytogenic production. Development 
of the technology of decontamination of cargoes; 
− study a species composition, biology and ecology of quarantine and other dangerous 
pests, plant and weed diseases that are not present or restricted on the territory of 
Kazakhstan. Based on that to develop a dr aft list of pests, plant and weed diseases 
towards which the state measures of pl ant quarantine are set and applied; 
− together with science-research agricultural and forestry institutions to participate in the 
development of effective measures to cont rol pests under quarantine, plant and weed 
diseases; 
− the state control of the execution of quaran tine measures by the ministries, institutions, 
enterprises and organizations, and also by citizens; 
− control of the activity of introductory-quarantine nurseries, the state quality fields, 
greenhouses that carry out quarantine check of  seeds and plants delivered from the other 
states, and also from the zones under quarantine on the territory of the republic; 
− supervision of sowings and plantations in nurseries, science-research institutions, seed 
and flower-decorative farms to issue seeds and planting materials free of pests and 
diseases; WT/ACC/SPEC/KAZ/7 
Page 20  
 
 − control of measures of the international conventions and agreements concerning 
quarantine of plants; 
− promotion and wide use of science achievements and advanced experience. Introduction 
of the population with the quaran tine objects and measures of control; 
− issuance of the quarantine permissions for importing, phytosanitary and quarantine 
certificates for seeds, plants and phytogenic production; 
− inspection of agricultural land and forests, st oring and processing premises for phytogenic 
production, stations receiving production under quarantine a nd its environs to timely 
detect pests, diseases and to set division of the territory of the republic in case of 
quarantine; 
− The maintenance of the Republican station of  plant protection, and of the head state 
inspection on plant quarantine was carried out  at the cost of the republican budget. 
 Later on the Republican station for plant protection and the head state inspection on plant 
quarantine were reorganized into the Committee for plant protection and the Committee on plant 
quarantine accordingly. At present, the functions of  the indicated committees are carried out by the 
Plant Protection and Quarantine Department with o ffices on plant protection by territorial controls 
(management's) МСХ  РК. 
The main functions of the introductory quarantine nursery are as follows: 
− Check-up of samples of imported planting stoc k, implanted seed stock of fruits, flower-
decorative, forestry and other cultures to identify hidden infection of dangerous organisms or those under quarantine and pr oduction of sound stock after the check-up. 
 The suppliers are the republican scientific institu tions for fruits and berries such as the "Plant 
gene pool" the National State Enterprise of the Nati onal Academy of Sciences hired by the Ministry 
of Agriculture to work with importing, testing a nd introduction in production of highly-effective fruits 
and grapes from the United States, New Zealand,  Canada and other countries. Introduction and 
quarantine check-up of the stock imported amounts to 3.2 – 3.5 thousand samples. 
 The maintenance of the introductory and quaran tine nursery is also done at the cost of the 
Republican budget. 
 The order of allocation of funds disbursed fro m the republican budget for plant protection and 
quarantine is as follows: 
 Pesticides were purchased at the cost of the funds allocated given the forecasted volume of 
protective and quarantine measures for the next year and were disseminated in regions depending on 
the phytosanitary situation. Fo llowing the completion of works reports were submitted based on 
which remuneration was paid to executors. 
 Presently, the same order of allocation of funds  is in force, however the procurement of 
pesticides, works and services is done on the competitive basis. 
 Paragraph 2g.
 
 While compiling the given section clauses 1 and 2 of the Attachment 2 of the Agriculture 
Agreement were used. Particularly: "Government programs on provision of services (services of general character): (a) science research of genera l character, research progr ams on concrete products; 
services concerning infrastructure, including: power supply, roads and other means of 
communication, market and portal equipment, wate r supply, dams and drainage systems, works 
connected with building infrastructure consistent w ith programs on preservation of environment. In all  WT/ACC/SPEC/KAZ/7 
 Page 21 
 
 
 cases funds are disbursed only for equipment or th e construction of capital premises. Subsidies for 
objects of infrastructure within the family farms are not possible unless this concerns branches of 
utilities for public use. Subsidies for materials, ope rating costs or consumer fees having privileges are 
not foreseen". 
 Exploitation of water reservoirs, channels, execution of starting-up, regulating, flood-
resistant, anti-ice works and wo rks connected with management and control of water use and 
protection. 
 During 1996-1998 funds for the budget program s were disbursed from the Republican budget 
to the Committee of water resources of the Ministry  of Agriculture of the Republic of Kazakhstan. 
The recipients of the funds were: 
− Regional committees for water resources (RCWR); 
− Basin water economic associations (BWA). 
Program Distribution mechanism 
Maintenance of regional committees for water resources, 
basin water management associations Budget for the maintenance of RCWR and BWA 
Preventive and repairing works at the water management 
objects of the Republic of Kazakhstan;  
 - preventive works at the interstate water 
management objects Budget for the execution of  preventive and repairing 
works at the water management objects 
Science development in the field of water resources Science-research institutions 
Construction of new water pipelines and reconstruction of the existing List of objects authorized by the decree of the 
Government of the Republic of Kazakhstan; design estimates 
 
Functions of the Basin water economic associations: 
− Management of water resources based on the basin principle; 
− State control of the rational use and protection of water resources; 
− Development of technical conditions for special water use; 
− Agreement and expertise of the pre-project  documentation (scheme of development and 
location of branches of national economy, the general layout, feasibility study and etc.) as well as the projects for the construction of en terprises, constructions and other objects that 
are located within the territory of the basin and influencing the condition of water. 
Regional committees for water resources: 
− Exploitation of hydroeconomic reclamative projects, hydrotechnical constructions of 
economic importance, plumbing and water reservoirs, dams, pumping plants, coast-protecting dams and other c onstructions to maintain them and extend their service; 
− Rational use, and timely and regular supply of  water to municipal, rural settlements and 
producers and other water consumers in accordan ce with the authorized plans of water 
use; 
− Order the construction of new water economic projects and repairing and recovery works 
at the existing projects or their delegation to subordinate organizations, etc. 
 Forecast and development of regional programs of use and protection of land. Topographical 
and geodesic and other investigation works, so il and geo-botanical survey, land monitoring. WT/ACC/SPEC/KAZ/7 
Page 22  
 
  During 1996-1998 funds under the budget progr ams were disbursed from the Republican 
budget to the Committee on management of land resources of the Ministry of Agriculture of the Republic of Kazakhstan.  
Budget fund recipients Functions of the recipients or the assignment  
of use of budget funds 
Regional committees on management of land resources Execution of special and supervision functions within the region. 
Provision and execution of land relations in the sphere of state 
management of land resources 
State topographic and geodesic enterprises Geodesic, cartographical and topogr aphical delimitation, demarcation 
and check of the origin of the lin e of the State boundary of the 
Republic. 
 Establishment, development and modernization of the state geodesic 
network. Establishment and update of topographic plans and maps on 
paper of all gradation. Design and composition of geographical political and administrative maps, atlas. 
"GosNPTszem" subsidiary state 
enterprise (measures on improvement of 
land management and farming) Provision of land rights of the Republic of Kazakhstan, including 
improvement of land legislation concerning the expansion of leasing 
relations and collateral. Maintenance of the state land cadastre and land monitoring. 
Creation maintenance of the database on the status of land resources 
of the Republic of Kazakhstan; Land zoning, execution of the state control of the use and protection 
of land due to the order. Protection of rights of own land shares and 
of land users by supporting land documentation; Creation of favorable conditions to form the land market; 
Land management of the settlements.  
 
State national parks, reserves, forestry associations. 
 In 1997-1998 funds under the budget programs were disbursed from the Republican budget to 
the Committee of forestry, fishery and hunting of th e Ministry of Agriculture of the Republic of 
Kazakhstan. The following programs were financed: 
Program Description 
"Forestry associations": 
 -  green zone; 
 
  
  
 -  operating costs,  
 -  construction of the green zone of Astana city, increase of the 
afforestration of the territory, preservation of environment and 
potential of resources of Astana. Form of financing- the state order, executed by the speciali zed "Zhasyl-Aimak" Republican 
state enterprise. 
 -  maintenance of staff of  the forestry associations. 
"Forest protection" Under the program forest protection and air forest protection measures are 
done.  Detection and elimination of fire using aviation.  Form of financing 
– the state order. The program is ex ecuted by the "Kazakhstani base for 
forest protection from air and keep ing of forests" state enterprise. 
"National parks",  "Reserves" Maintenance of measur es of the state national parks, state reserves. The 
program is executed by 15 state institutions. Form of financing – supportive.  The main functions: preservation of unique natural resources 
and endangered species of flora and fauna. Prevention and elimination of 
harmful impact of fire, protection of forests from pests. Sanitary felling, 
recovery of forests and inhabited places. Bio-technical measures and 
creation of conditions for rare and endangered species of animals. 
Development of scientifically proved measures on protection and recovery 
of the natural and reserved resources . Recording of especially protected  WT/ACC/SPEC/KAZ/7 
 Page 23 
 
 
 Program Description 
natural territories. 
"Selection centers" Maintenance of the forestry stations - Kokschetau and Almaty, the 
republican forestry station. At pres ent, they are reorganized into the 
"Kazakhstani republican forestry institution". 
The main functions: 
 
- Control of forests to maintain pr oduction of wood species with high 
sowing and genetic qualities and to provide with planting stock; 
- Identification of regular forest base to get improved seeds to produce 
wood species that guarantee higher productivity and sustainability of 
forests and their protective qualities; 
- Organization of work of the perm anent commission to certify objects 
of the permanent forest base; 
- Recording the data concerning the status of forests and presence of 
bearing; 
- Definition of sowing qualities of seeds of wood species, and the level 
of entomological and phytopatological infestation of seeds, seedlings 
and soil; 
- Issuance of documentation concerning the quality of seeds in 
accordance with the requir ements and standards; 
- Control of the work of the enterp rises recording the yield of seeds. 
 
Compliance of the seeds sown at nu rseries and forest zones with the 
original samples.  Form of financing – support is rendered. 
"Forestry and design" Form of financing – the state order. The Program is executed by the 
"Kazakhstani forest management enterprise" state enterprise. 
The program is aimed at the following: 
 - the execution of all set of forestry works to get "The organizational 
and economic plans for forestry management by the forest protection 
institutions"– a list of concrete figures and instructions concerning the volume and method of execution of all complex of forestry works 
during the supervision period that following the ecological expertise 
become obligatory for the execution. 
- forestry management is aimed at rational managing of forestry, use of 
forest, reproduction, protection of forest, state recording of forest 
resources and fauna. Execution of science and technological policy in 
forestry; 
- provision of design estimates of works for the recovery and 
protection of forest, topographical and geodesical, geological, 
lumber, land-reclamative, landscape investigations to define the 
character of forest conditions and to identify the forest reserves. 
 
__________