QazTrade is negotiating with Brazilian sugar producers and promoting Kazakhstan's exports to Latin America - "QazTrade" Trade Policy Development Center" JSC
QazTrade is negotiating with Brazilian sugar producers and promoting Kazakhstan’s exports to Latin America

QazTrade is negotiating with Brazilian sugar producers and promoting Kazakhstan’s exports to Latin America

Azamat Askaruly, General Director of JSC «QazTrade», an operator company for the support and development of Kazakhstan’s exports, held meetings with the business circles of Brazil and Argentina during his trip to Latin America.

During negotiations with the Vice-President of the company «Raizen» Paulo Neves and the head of «Art Brasil» company Carlos Souza, the parties discussed the possibility of increasing the supply of Brazilian sugar to Kazakhstan.

Brazil, in turn, is a world leader in sugar production, accounting for almost 25 percent of world production and 50 percent of world exports.

In 2021, Kazakhstan imported 161.4 thousand tons of raw sugar from Brazil.

For reference: By the decision of the Council of the Eurasian Economic Commission with the participation of Deputy Prime Minister – Minister of Trade and Integration of the Republic of Kazakhstan Bakhyt Sultanov, Kazakhstan’s quota for duty–free imports of white sugar and raw sugar has been increased to 350 thousand tons, until the end of August 2022.

The meeting organized with the management of the leading Brazilian company in the field of industrial electrical equipment production «WEG». Parties discussed the possibility of increasing the investment representation of «WEG» in the Republic of Kazakhstan: the launch of a service hub and the localization of a plant for the production of electrical equipment.

The implementation of the project will contribute to providing Kazakhstan’s industry with access to the best productivity technologies, will expand the production of electrical equipment for subsequent export and create additional jobs.

For reference: WEG Concern is the world’s leading developer and manufacturer of electric machines, drive equipment and integrated solutions in industrial automation, production, transmission and distribution of energy.

Every day WEG produces 70 thousand electric motors. The company’s market value is $ 30 billion, and the cumulative average annual growth rate reaches 17.4%. The company has 48 production sites in 12 countries (Brazil, Argentina, Colombia, Mexico, USA, Germany, Portugal, Spain, Austria, India, South Africa and China), commercial branches in 36 countries, including Kazakhstan, as well as service centers and distribution points in 120 countries.

During his visit to Argentina, Azamat Askaruly met with the management of Los Grobo Agropecuaria and visited agricultural lands. The parties agreed on mutual cooperation in order to further apply the Argentine experience in Kazakhstan’s agribusiness. The parties also considered the issues of potential supplies of fertilizers from Kazakhstan to Argentina.

For reference: Los Grobo is an Argentine economic group specializing in the provision of services for the production and export of agro—industrial food products.

Los Grobo is the only company in Argentina that synthesizes, develops, manufactures and sells plant protection products. The group of companies unites the grain business, through branches, provides services both in production and logistics, as well as assistance in commercialization in all ports and markets. The group of companies manages about 220 thousand hectares of sustainable. At its factories in Argentina and Brazil, the company produces flour for both domestic and industrial consumption, premixes for the production of semi-finished products and special mixtures. A group of companies in the 5 largest flour milling groups of the country.

In addition, the Head of «QazTrade» took part in the Kazakh-Brazilian Trade and Investment Forum in Sao Paulo. The event was organized by the Embassy of the Republic of Kazakhstan in Brazil. The Forum was attended by Ambassador Extraordinary and Plenipotentiary of the Republic of Kazakhstan to Brazil Bolat Nusupov, representative of JSC «NC «Kazakh Invest» Galymzhan Matayev, Director of the Department of Russia and Central Asia of the Ministry of Foreign Affairs of Brazil Pedro Murilo Ortega Terra, President of the Chamber of Commerce «Brazil-Kazakhstan» Cassiano Pereira Viana and representatives of business circles of Brazil.

Azamat Askaruly presented in detail the trade and economic opportunities of Kazakhstan and the potential for increasing mutual trade between the two countries, noting that in recent years the trade turnover between the countries has shown positive dynamics.

For reference: Trade turnover doubled in 2021, amounting to $169.3 million. In January-February 2022, this figure has already amounted to 59 million US dollars.

Exports from Kazakhstan amounted to 72.6 million US dollars in 2021. The main exported goods to Brazil are sulfur, ferrochrome and urea. Imports to Kazakhstan from Brazil amounted to 96.7 million US dollars. Kazakhstan mainly imported raw cane sugar, medicines and amino acids.

– Considering the positive dynamics of the mutual trade growth, according to our calculations, the export potential of Kazakhstan to Brazil is more than 500 million dollars, – Azamat Askaruly said.

According to the General Director of JSC «QazTrade», Kazakhstan is ready to supply the Brazilian market with goods of the metallurgical industry, food industry, chemical industry, as well as mechanical engineering, construction materials and mineral fertilizers.

In addition, the analysis of the Latin American market showed that Kazakhstan can become a supplier of such goods produced in Kazakhstan as: ammonium nitrate, bituminous coal, light and other distillates, wheat and meslin, rolled steel and unalloyed aluminum, iron ores and concentrates, pipes made of unalloyed steel and oil or gas pipelines, polyvinyl chloride etc.

The General Director of JSC «QazTrade» demonstrated to his Brazilian colleague’s logistics solutions for conducting trade between Kazakhstan and Brazil: «Despite the considerable distance between our countries, today there are many logistics routes for the delivery of goods, both with the use of multimodal transportation and air transport. In the current geopolitical situation, the priority direction is the development of the Trans-Caspian International Transport Route (TMTM) in the implementation of mutual trade with the countries of South and North America, the European Union and Africa. As for the transportation of goods from the port of Santos to Almaty along the TM corridor with transshipment of goods in the ports of the Black Sea (Poti, Batumi), the average delivery time is 55 days. Cargo transportation through the ports of the Baltic countries will take a similar time. Delivery through Chinese ports on time is longer and can reach up to 65-70 days. »

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