ASTANA – Kazakhstan and the United States have strong potential to deepen trade and investment ties, particularly with the repeal of the Jackson-Vanik amendment, said Daniel Alan Witt, president of the International Tax and Investment Center (ITIC), during an interview with The Astana Times on sidelines of the Astana International Forum (AIF) 2025.
Daniel Alan Witt. Photo credit: iticnet.org
According to Witt, one of the most straightforward and impactful steps to strengthen Kazakh-American relations would be the repeal of the Jackson-Vanik amendment.
The Jackson-Vanik amendment, enacted in 1974, was designed to pressure the Soviet Union on human rights issues by tying trade benefits to its willingness to allow the free emigration of Jews and other religious minorities. The amendment played a significant role in enabling thousands to emigrate to the U.S. and Israel during the Cold War. However, more than three decades later, countries like Kazakhstan remain subject to its outdated provisions, requiring annual waivers to maintain normal trade relations with the United States.
“The most obvious ‘low-hanging fruit’ is to end the annual review of Kazakhstan under the Jackson-Vanik law. It makes no sense to keep this review: Kazakhstan permits free emigration. Jews practice their religion freely,” Witt said.
“It’s time for the Congress to end this annual review and to grant Permanent Normal Trade Relations with Kazakhstan. This will be a clear sign of the importance the U.S. places on our partnership with Kazakhstan,” he added.
Trade and investment ties
According to Witt, more exchanges between business leaders, academics, tourists, and U.S. officials will raise Kazakhstan’s profile in the U.S. and highlight its key role in fostering peace and stability in Central Asia.
Daniel Witt during the interview at the sidelines of the Astana International Forum (AIF) 2025. Photo credit: The Astana Times
“Our bilateral trade, at $4.1 billion, has increased 30% since 2022, but it can grow even further, not only in uranium, other minerals and metals, and extractive industries that form much of the current trade but in new products as well. Just as Kazakhstan’s trade with the EU has grown, particularly since the adoption of the Enhanced Partnership and Cooperation Agreement in 2020, it can grow with the U.S. as well,” said Witt.
Similarly, a positive trend is seen in investment. According to Witt, American investment in Kazakhstan has grown steadily since independence, reaching approximately $53 billion in 2024 and contributing to a total of over $430 billion in the foreign investment.
“While U.S. investments in oil and gas have received the most attention, in fact, U.S. investment extends to a wide variety of sectors, from hospitality to financial services. Over 600 U.S. companies operate here,” he said.
“Kazakhstan’s multi-vector foreign policy means U.S. investment is welcomed, and there are real opportunities here. Pepsi-Co’s recent expansion is just one example,” Witt added.
Kazakhstan’s track on economic progress
According to Witt, Kazakhstan has made tremendous economic progress and should stay on its current path of development.
“Kazakhstan’s impressive strides have made it the star of the Central Asian economies and helped the country compete on a global stage. For 30 years, Kazakhstan has embarked on a strong path of reform that has led to significant growth, and recent reforms helped Kazakhstan jump in global rankings,” Witt said.
“After a long period of reform with impressive results, it is tempting to rest on one’s laurels. But in an increasingly competitive region, it is essential to stay the course and to embark on a new series of reforms that will keep Kazakhstan growing in a new era. This is consistent with President Tokayev’s agenda to bolster the business climate; increase competition in the economy; and implement a stronger, more efficient tax system,” he said.
Witt emphasized the importance of diversifying Kazakhstan’s economy in a strategic manner, guided by predictability, transparency, and trust.
“I believe Kazakhstan needs to have competitive tax policies. Investors need stability, predictability and digitalization of the tax and custom services to ensure they are predictable and not going to be interpreted or squeezed by different tax or customs inspectors,” Witt said.
