More Than a Quarter of U.S. Uranium Comes from Kazakhstan: Washington Weighs New Terms

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Arman Korzhumbayev Editor-in-Chief

Based on a September 4 article by The Times of Central Asia (United States).

Kazakhstan’s growing role in global supply chains was discussed during a nearly four-hour hearing of the U.S. House Committee on Ways and Means held on September 2.

The hearing, titled “Strategic Partnerships to Secure Critical Resources and Supply Chains,” covered a wide range of issues, including the development of the U.S. mining sector, raw-material processing capacity, cooperation with Africa and trade policy. Kazakhstan emerged as one of the most frequently cited country examples.

The discussion took place a week after a congressional delegation led by Committee Chairman Jason Smith visited Kazakhstan.

During the hearing, Kazakhstan was presented as an existing and reliable participant in U.S. supply chains. Smith noted that Kazakhstan accounts for more than a quarter of all U.S. uranium imports.

Former U.S. Ambassador John Herbst, senior director of the Atlantic Council’s Eurasia Center, described Kazakhstan as the world’s largest uranium producer, a country with the world’s second-largest manganese reserves, and one of the leading producers of titanium.

He also noted that the United States currently accounts for only about 2.1% of Central Asia’s mineral exports.

In his view, such a small share creates considerable room for American companies to expand their presence in a region that is actively seeking investment and technology while diversifying its economic ties and reducing dependence on Russia and China.

Kazakhstan’s importance was also linked to its central position along the Trans-Caspian International Transport Route, widely known as the Middle Corridor. Participants in the hearing described the route as an increasingly important link between Central Asia and Western markets.

For Kazakhstan, the key political issue raised during the hearing was the Jackson-Vanik amendment.

Three of the five invited experts directly supported lifting Jackson-Vanik restrictions on Kazakhstan and other Central Asian countries that meet the relevant criteria. Another expert urged Congress to consider such a move. The position also received support from representatives of both parties.

Smith said his recent meetings in Central Asia showed that regional partners view the Soviet-era measure as an obstacle to deeper economic ties.

Herbst called on Congress to remove the remaining Jackson-Vanik restrictions affecting Kazakhstan and other Central Asian countries.

Daniel Runde, a non-resident senior adviser at the Center for Strategic and International Studies, urged Congress to grant Kazakhstan permanent normal trade relations.

He stressed that Central Asian countries should not be forced to choose between Washington, Moscow and Beijing.

Runde described the Jackson-Vanik amendment as an outdated mechanism for regulating relations with countries that have been independent for 35 years and have long met the amendment’s original requirements concerning freedom of emigration. In his view, its repeal would demonstrate that the United States is prepared to build a modern partnership with the region.

Reflecting bipartisan support, at least six members of the Committee called for the remaining restrictions to be lifted.

Representative Carol Miller described the amendment as an outdated measure that discourages American investors.

Representative Jimmy Panetta presented the most detailed case in support of Kazakhstan. As the author of the U.S.-Kazakhstan Trade Modernization Act, he described the removal of restrictions as a step that would require little significant cost while potentially delivering substantial economic, strategic and diplomatic benefits to both countries.

He also noted that the Jackson-Vanik amendment continues to apply to Kazakhstan even though the country has consistently complied with its freedom-of-emigration requirements since the 1990s.

Panetta also pointed to Kazakhstan’s membership in the World Trade Organization and reforms pursued under President Kassym-Jomart Tokayev, including changes in the judicial and law-enforcement systems and the introduction of a single seven-year presidential term.

He portrayed Kazakhstan as a country that, despite the constraints created by its geography, is seeking closer relations with the United States.

Representative Tom Suozzi, one of the original co-sponsors of the U.S.-Kazakhstan Trade Modernization Act, also supported the initiative from the Democratic side.

He described Kazakhstan as a country that, despite close economic ties with Russia and China, is seeking closer engagement with the United States. In support of his position, he referred to reforms underway in the country, religious openness and his own impressions from visiting Kazakhstan.

Representative Claudia Tenney, also a co-sponsor of the U.S.-Kazakhstan Trade Modernization Act, supported lifting the restrictions as well.

Representative Blake Moore said that granting permanent normal trade relations would allow Central Asian countries to broaden their range of economic opportunities.

Representative Don Beyer, despite his broader criticism of the Administration’s trade policy, described the removal of Jackson-Vanik restrictions on countries in the region as a justified initiative.

By the end of the hearing, Kazakhstan was presented as a country whose significance extends far beyond its role as a supplier of raw materials.

It was portrayed as a leading state in Central Asia, an important contributor to U.S. energy security, a key link in Trans-Caspian transport routes, and a partner seeking greater economic independence and deeper cooperation with Washington.

DKNews International News Agency is registered with the Ministry of Culture and Information of the Republic of Kazakhstan. Registration certificate No. 10484-AA issued on January 20, 2010.

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