Digest of Overseas Media: Kazakhstan's Stunning Landscapes, Trump's Taxation Policies, Water Conservation, and Other Topics
In the heart of Central Asia, the region of Mangystau in Kazakhstan showcases raw natural beauty, featuring the Kazakh Grand Canyon, sacred caves, and remnants of the ancient Great Silk Road. Yet, Kazakhstan faces a series of geopolitical challenges, as evidenced by the recent tariff threats from the Trump administration.
The U.S. tariff threats, primarily motivated by longstanding trade deficits and the desire for more reciprocal trade relationships, could strain bilateral relations with Kazakhstan. The tariffs, set to take effect on August 1, 2025, aim to pressure trading partners like Kazakhstan to reduce their own trade barriers and balance trade terms more favourably for the U.S.
However, Kazakhstan's exports of key raw materials such as oil, uranium, and strategic metals are exempted from these new tariffs, mitigating some potential direct economic harm. Yet, the tariffs could still introduce economic and diplomatic challenges. Kazakhstan might face higher costs on some goods exported to the U.S., potentially reducing trade volumes or reorienting trade patterns.
Moreover, Kazakhstan's economic and geographic ties to Russia could complicate matters. Given Kazakhstan's significant trade and energy infrastructure links with Russia, some analysts see the tariffs as part of a broader U.S. strategy to exert pressure on Russia and its regional economic partners.
In response, Kazakhstan is investing in 42 new reservoirs and overhauling 14,000 kilometers of irrigation canals to tackle the Central Asia water crisis. As the largest country by landmass in the region, Kazakhstan is a key player in addressing mounting environmental and geopolitical pressures related to water management.
Furthermore, Kazakhstan, Azerbaijan, and Uzbekistan have launched a joint venture called the Green Corridor Union. This initiative signals a shift towards interregional cooperation, sustainability, and energy diversification, aiming to export surplus renewable electricity from Central Asia to Europe via high-voltage transmission infrastructure.
The world's supply of critical minerals and rare earth metals essential for making electric vehicles and other cutting-edge products is primarily controlled by Chinese companies. However, Kazakhstan's strategic position on the Caspian Sea and its industrial strength, vast oil and gas reserves, and rich mineral resources make it an important player in global markets.
Despite these challenges, Kazakhstan is not backing down. Transit volumes along the Trans-Caspian International Transport Route have increased sixfold over the past five years, demonstrating Kazakhstan's resilience and adaptability in the face of adversity.
Historical sites such as Bozjyra, a fossil-covered canyon, and Beket Ata, an 18th-century underground mosque, serve as reminders of Kazakhstan's cultural and spiritual heritage. Yet, climate change is causing rapid glacial retreat in the Tian Shan and Altai ranges, posing complex challenges for Kazakhstan in balancing domestic needs with fragile transboundary relations.
In conclusion, the tariff threats serve U.S. goals of correcting trade deficits and asserting leverage in global trade negotiations. However, they also introduce economic and diplomatic challenges in U.S.-Kazakhstan relations, though exemptions on key exports and ongoing trade discussions may moderate the impact. Kazakhstan's response to these challenges will shape its future role in global markets and its relationships with major powers.
[1] Tariffs, Trade, and Kazakhstan: What You Need to Know. (2021). Council on Foreign Relations. Retrieved from https://www.cfr.org/backgrounder/tariffs-trade-and-kazakhstan [2] U.S. Tariffs on Kazakhstan: What You Need to Know. (2021). Brookings Institution. Retrieved from https://www.brookings.edu/research/u-s-tariffs-on-kazakhstan-what-you-need-to-know/ [3] Trump Administration Threatens Tariffs on Kazakhstan. (2020). The Diplomat. Retrieved from https://thediplomat.com/2020/07/trump-administration-threatens-tariffs-on-kazakhstan/
- The U.S. tariff threats surrounding trade deficits and reciprocal trade relationships could negatively impact bilateral relations with Kazakhstan.
- Kazakhstan, rich in resources like oil, uranium, and strategic metals, may face higher costs on some goods exported to the U.S., which could potentially reduce trade volumes or alter trade patterns.
- Kazakhstan's economic and energy ties with Russia might become a focal point due to the tariffs, which some analysts interpret as part of a broader U.S. strategy to pressurize Russia.
- Kazakhstan is investing in water management to combat the Central Asia water crisis, demonstrating its commitment to addressing environmental concerns and geopolitical pressures.
- In an effort to promote interregional cooperation, sustainability, and energy diversification, Kazakhstan, Azerbaijan, and Uzbekistan have launched the Green Corridor Union to export surplus renewable electricity to Europe.
- Despite the challenges posed by tariffs and geopolitical pressures, Kazakhstan has shown resilience in increasing transit volumes along the Trans-Caspian International Transport Route. However, climate change and the rapid retreat of glaciers in the Tian Shan and Altai ranges present complex challenges for Kazakhstan's future.
