One of the great paradoxes of our time is that, even as our economies and societies are increasingly shaped by intangible digital and technological revolutions, our dependence on the physical world only deepens.
Whether it is the chips, processors, and data centres which enable the rapid acceleration of artificial intelligence; or the turbines, battery cells, grid infrastructure and transmission lines, needed to harness energy from the wind and stars – the fourth industrial revolution does not mark a transition away from physical resources, merely a transition in what and how we use them.
The landscape of global trade must, therefore, evolve accordingly.
In this context, new centres of gravity are already beginning to emerge as the configuration of our global industrial base rapidly shifts. One region taking on increasing importance is Central Asia.
This region, a strategic bridge between Europe and Asia, has been a linchpin of global trade since the inception of the Silk Road. In the modern era, the region has played a critical role in the global energy sector. The region’s largest nation and economic powerhouse, Kazakhstan, is one of the largest suppliers of energy to the EU, responsible for over 9% of its total oil imports.
Yet as we look into the future, the importance of this region, and of Kazakhstan in particular, is set to reach new heights. For the United States, which in many ways is at the vanguard of this economic transformation process, Kazakhstan will be an ever more essential partner.
Critical minerals and rare earths have been at the top of the global agenda in recent weeks – though their importance has been recognised by policymakers, industrial leaders, and strategists for far longer.
Rare earth elements play a crucial role in the manufacture of high-tech and energy systems, and are typically found in very sparse quantities. Kazakhstan is one of the few countries where significant deposits of certain elements can be found – elements like molybdenum, which reinforces steel without adding extra significant weight; niobium, which is used to stop corrosion in rocket engines and MRI machines; and beryllium, which increases the conductivity of key metals.
While the likes of molybdenum are not exactly household names – one critical raw material is far better recognised: uranium.
According to the World Nuclear Association’s latest figures, Kazakhstan is responsible for 43% of global uranium supply – nearly three times as much as its closest competitor.
As such, Kazakhstan is the bedrock of the nuclear energy sector globally, especially as it goes through a renaissance – with generation set to reach a record high in 2025, and the advent of Small Modular Reactors offering new cost-effective means through which to meet increasing energy demands.
Indeed, Kazakhstan has also made its own investment in its first nuclear power plant, reflecting our strong commitment to the future of nuclear energy, and our willingness for strong international collaboration on this front in the years to come.
Kazakhstan’s strategic importance is clear. As is the opportunity for the United States to deepen its ties and expand further on President Eisenhower’s vision on “Atoms for Peace.”
Our country is open for business – with a strong commitment to developing our extractive sectors in collaboration with international partners, while investing in the diversification of our economy. We have a growing middle class with increasingly cosmopolitan tastes. We have a well-educated young population with significant potential.
As such, we are an increasingly attractive economic partner for the United States – both as a potential market for exports, and as a transport and transit hub through which US companies can access the broader region throughout Eurasia.
What’s more, there is a clear, obvious, and mutually beneficial pathway to expanding trade relations.
In 1974, Congress passed Section 402 of the Trade Act of 1974 – known as the Jackson-Vanik amendment. This amendment denied normal trade relations status to the Soviet Union, as a result of restrictive policies on the emigration of Jews.
More than 50 years later, this legacy amendment – which U.S. Secretary of State Marco Rubio recently described as an “absurd relic of the past” – continues to create friction in American trade relations with Kazakhstan, as well as other key countries in the region. This is despite the support of multiple previous administrations for its repeal.
While there are measures that mitigate the punitive elements of the amendment on a temporary basis, the current status quo is a clear obstacle to American businesses operating in Kazakhstan.
The extension of permanent normal trade relations (PNTR) status would be an important step to opening up these markets to American business and deepening the strategic relationship between both countries.
This strategic partnership can also take on new importance at a time where global divisions are becoming yet more pronounced.
Our commitment to partnership extends beyond the economic realm. Indeed, Kazakhstan has long stood for the principles of global dialogue and peace through diplomacy – in keeping with the new administration’s focus on the acceleration of peace in our region.
In this light, we hope to usher in a new era of strengthened partnership, in which we can work closely with the United States to build peace and stability through the advancement of our mutual prosperity and strategic interests.
[Header image: Yellowcake uranium concentrate produced from uranium ore. Credit: Nuclear Regulatory Commission from the US, Public domain, via Wikimedia Commons]
The views and opinions expressed in this article are those of the author.
Kanat Sharlapaev is the Assistant to the President of Kazakhstan on Economic Affairs. He previously served as Minister of Industry and Construction.
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