Trading Values with Kazakhstan (CEPS Centre for European Policy Studies, 2013)
The European Union (EU) and Kazakhstan have become important partners over the past decade. The EU is Kazakhstan's leading trade partner, accounting for 40 per cent of its exports. At the same time, Kazakhstan contributes to meeting the EU's oil and uranium demand and Europe is increasingly interested in the country's extensive natural resources. Growing economic and political ties have brought EU-Kazakhstan relations to a new level that seems to surpass the current bilateral agreement and the overarching (regional) engagement through the EU Strategy for Central Asia. In 2011, negotiations began over a new and enhanced agreement to replace the current Partnership and Cooperation Agreement (PCA). Despite substantial initial progress, recently talks have slowed down. Kazakhstan's interest seems to be declining and differences are mounting over two key issues: technical and regulatory aspects related to trade and investment, and a clearer commitment and results by Astana towards democratic reform