Prime Minister’s Council on Track & Trace Issues

AmCham members and diplomats urged the government to take a balanced, gradual approach to implementing the track & trace system for consumer goods at the September 19 session of the Prime Minister’s Council on Improving the Investment Climate, chaired by Prime Minister Olzhas Bektenov.

AmCham presented the unified position of its Fast-Moving Consumer Goods (FMCG) Committee, providing members with an opportunity to present business perspectives directly to the Government of Kazakhstan. Committee members shared practical insights and concerns on the introduction of digital labeling, stressing that while the system may strengthen consumer protection and curb illicit trade, it must be implemented gradually to avoid excessive costs and disruptions for companies operating in Kazakhstan.

Victoria Sanchez, Acting Deputy Chief of Mission of the U.S. Mission to Kazakhstan, noted that while the U.S. supports Kazakhstan’s goals of consumer safety and combating illicit trade, extending track-and-trace beyond tobacco and pharmaceuticals risks overregulation and higher costs for business.

Aleška Simkić, Ambassador of the EU Delegation to Kazakhstan, emphasized that European companies favor a gradual, evidence-based rollout of track-and-trace to avoid disproportionate costs and maintain investor confidence.

Ertan Kurt, Managing Director of Efes Kazakhstan, stressed that a phased introduction supported by independent research is essential to reduce financial pressure on companies, especially amid upcoming tax and currency challenges.

Andrei Bashkirov, General Manager of Procter & Gamble Distribution Company, pointed to Russia’s experience, noting that mandatory labeling increased costs and prices without preventing counterfeit trade, creating unnecessary burdens for businesses and consumers.

Summarizing the meeting, Prime Minister Olzhas Bektenov underlined Kazakhstan’s commitment to openness and predictability in attracting long-term investments. He stated that the Government intends to expand production capacities, increase localization, and deepen the digital transformation of the economy. The development of the digital labeling system is considered a key tool to improve market transparency, protect consumer rights, and reduce the share of the shadow economy in GDP (which decreased from 23% in 2019 to 16% in 2025).

The Prime Minister instructed government agencies to further study the issues raised by businesses and to take all necessary measures to ensure a smooth introduction of product labeling.

AmCham welcomes this constructive dialogue with the Government and values the Council as a critical platform where the unified voice of the business community is heard. We remain committed to supporting regulatory initiatives that improve transparency and consumer protection, while ensuring a competitive and stable environment for long-term investment in Kazakhstan.