Bilateral Trade - The Times Of Central Asia

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Regional integration

Central Asian Leaders Welcome Azerbaijan’s Accession at Tashkent Summit

The leaders of Central Asia convened in Tashkent on November 16 for a high-level Consultative Meeting, marking a significant step toward deeper regional integration. The summit welcomed Azerbaijan as a full participant and endorsed a roadmap to formalize cooperation in trade, infrastructure, security, and water management. Hosted by Uzbekistan’s President Shavkat Mirziyoyev, the summit brought together the presidents of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Azerbaijan, alongside a United Nations representative. Ahead of the meeting, Tashkent’s central streets were adorned with national flags and floral installations, underscoring the political and symbolic significance the Uzbek government placed on the event. Mirziyoyev hailed Azerbaijan’s accession as “a truly historic day,” as the country became a full member of the Consultative Meeting of the Heads of State of Central Asia. He proposed forming a “Community of Central Asia,” establishing a rotating Secretariat, appointing special presidential envoys for coordination, and creating a Council of Elders to promote cultural and humanitarian dialogue. [caption id="attachment_39410" align="aligncenter" width="1280"] Image: president.uz[/caption] Regional Economic and Connectivity Agenda Economic cooperation dominated the multilateral agenda. Leaders agreed to develop a Comprehensive Regional Program for Trade and Economic Cooperation through 2035 and to draft a Declaration on a Common Investment Space. “In essence, we will build a strong bridge between Central Asia and the South Caucasus and pave the way for the formation of a single space of cooperation, which will undoubtedly strengthen the strategic interconnectedness and stability of both regions,” said Mirziyoyev. Kazakhstan’s President Kassym-Jomart Tokayev also highlighted deepening bilateral ties with Uzbekistan. Trade between the two countries has reached $4 billion in 2025, with plans to increase it to $10 billion through expanded industrial cooperation and import substitution. Over 6,500 joint enterprises now operate between the two countries, with new projects worth more than $8 billion under development. Several initiatives, such as the Silkway Central Asia logistics center, new industrial facilities, and cultural programs, were launched in Tashkent during the visit. [caption id="attachment_39411" align="aligncenter" width="1280"] Image: president.uz[/caption] Tajikistan’s President Emomali Rahmon met with Mirziyoyev on the sidelines of the summit. The two leaders noted the steady growth in political dialogue and agreed to expand cooperation in energy, industry, agriculture, and innovation. Bilateral trade surpassed $440 million in the first nine months of 2025. They also discussed regional security, including collaboration against terrorism, extremism, cybercrime, and drug trafficking. Security, Water, and Cultural Cooperation To advance regional integration, Tashkent also hosted the first meeting of the Council of Ministers of Trade and Investment of Central Asian countries and Azerbaijan on November 13. Ministers discussed boosting trade, investment, and industrial cooperation, with the goal of increasing regional trade turnover to $20 billion. Plans were also made to develop joint production platforms under a “Made in Central Asia” label. Uzbekistan’s trade with Central Asian partners rose from $3.2 billion in 2017 to $6.9 billion in 2024, while trade with Azerbaijan has grown by 13% this year. Connectivity remained a focal point. Participants reaffirmed their commitment to the China-Kyrgyzstan-Uzbekistan railway and the Trans-Afghan corridor. Azerbaijan’s President...

Bilateral Trade

Kazakhstan and Kyrgyzstan Aim to Boost Trade to $3 Billion by 2030

Kazakhstan and Kyrgyzstan have reaffirmed their commitment to increasing bilateral trade to $3 billion annually by 2030. This objective was emphasized during the 13th meeting of the Kazakh-Kyrgyz Intergovernmental Council, held on November 13 in Astana and co-chaired by Kazakhstan’s Prime Minister Olzhas Bektenov and Adylbek Kasymaliev, Chairman of the Cabinet of Ministers of Kyrgyzstan. The meeting covered a broad spectrum of cooperation, including trade, investment, water and energy management, as well as cultural and humanitarian initiatives. Kasymaliev highlighted recent progress, noting that bilateral trade reached $1.7 billion in the first nine months of 2025, a 15% increase compared to the same period in 2024. Direct investment from Kazakhstan to Kyrgyzstan totaled nearly $64 million in the first half of 2025. “This demonstrates the Kazakh business community’s trust in Kyrgyzstan and the broad opportunities for new projects,” said Kasymaliev. Key Infrastructure Projects and Trade Hubs The Council identified priority areas to strengthen cooperation. Chief among them is the construction of an industrial, trade, and logistics complex near the Karasu and Ak-Tilek road checkpoints at the border. This facility is expected to become a major regional hub for cargo consolidation, processing, and distribution, advancing industrial integration between the two economies. Another key project is the establishment of a wholesale storage and distribution center for fruits and vegetables in Kazakhstan’s Almaty region. This facility aims to secure uninterrupted agricultural trade between the two countries. Bilateral trade in agricultural products surged by 42% in the first eight months of 2025, reaching $326 million. Over 80% of that trade volume comprised exports from Kazakhstan. Energy Cooperation and Border Infrastructure The sides also discussed potential supplies of Kazakh oil and motor fuel to Kyrgyzstan. The latter consumes about 1.6 million tons of motor fuel annually, with 93% imported from Russia. Fuel prices in Kyrgyzstan have climbed since mid-2025, driven by higher wholesale costs in Russia, linked to reduced refining capacity, damage from Ukrainian drone attacks, and sanctions-related difficulties in acquiring technological equipment. Kazakhstan and Kyrgyzstan stressed the need to complete the ongoing reconstruction of three key border checkpoints, Kichi-Kapka-Besagash, Ak-Tilek-Karasuu and Karkyra-Kegen-which are expected to significantly facilitate cross-border trade. Tourism and Cultural Cooperation The two countries are also prioritizing mountain tourism. Plans include reviving tourist routes to Khan Tengri Peak, a destination located on the border and shared by both states, offering mutual opportunities to boost tourism-related revenues.

U.S.-Kazakhstan Relations

Kazakhstan Strengthens Role as U.S. Key Trade Partner in Central Asia

Kazakhstan has emerged as the United States’ primary economic partner in Central Asia, accounting for the vast majority of regional exports to the U.S. and serving as the leading destination for American imports, according to Finprom.kz. While Central Asia’s share of total U.S. trade remains small, Kazakhstan’s role within the region is increasingly dominant. Kazakhstan Accounts for Over 96% of Central Asia’s U.S. Exports In 2024, Kazakhstan was responsible for 96.7% of Central Asia’s exports to the United States, totaling approximately $2.4 billion out of a regional total of $2.5 billion. Uzbekistan, the next largest exporter, contributed just $44.4 million. The trend is similar for U.S. goods entering the region. Kazakhstan imported $1.1 billion worth of U.S. goods in 2024, or 62.3% of all American exports to Central Asia. Uzbekistan followed with $380.8 million, while Turkmenistan and Tajikistan imported $82.2 million and $56.8 million, respectively. Despite this strong bilateral exchange, Central Asia remains a small player in U.S. global trade. In 2024, the U.S. recorded $3.27 trillion in goods imports and $2.06 trillion in exports, according to U.S. Census Bureau data. Even so, U.S.–Kazakhstan trade has grown meaningfully in recent years. Between 2019 and 2024, the U.S. share of Kazakhstan’s total trade rose from 2.3% to around 3%. Bilateral trade peaked in 2024 at $4.2 billion, the highest level in six years, with U.S. exports to Kazakhstan accounting for 53.2% of the total. Trade Growth and 2025 Downturn That growth slowed sharply in 2025. From January to August, total trade between the two countries fell to $2.1 billion, a 25.8% drop compared to the same period in 2024. Kazakhstan’s exports to the U.S. accounted for much of the decline, falling to $749.7 million in the first nine months of the year - about half the level recorded the previous year. Oil and oil products saw the steepest drop, falling 3.5 times to $269.1 million. Exports of uranium, silver, ferroalloys, tantalum, and titanium also declined, though these remain important categories. By contrast, U.S. exports to Kazakhstan remained relatively stable. Goods shipments fell just 4.8% year-on-year, totaling approximately $1.7 billion from January through September. U.S. exports to Kazakhstan continue to consist primarily of high-value manufactured goods, including vehicles, aircraft, agricultural machinery, computers, telecommunications equipment, and medical devices. Pharmaceuticals stood out in 2025, with American shipments of medicines and vaccines more than doubling to $249.3 million in the first nine months of the year. Investment and Business Cooperation Deepen Alongside trade, investment, and business cooperation between the two countries is also deepening. According to the Kazakh Prime Minister’s office, more than 600 companies with U.S. capital were operating in the country as of late 2025 – a large increase over the previous year. The number of Kazakh-American joint ventures rose by 5.6% over the same period. U.S. companies are active in a range of sectors, including IT, manufacturing, education, consulting, and trade. While the United States is not among Kazakhstan’s top trading partners by volume, the relationship is seen as strategically important. Amid...

State Visit

Aliyev, Tokayev Pledge Deeper Cooperation as Azerbaijan Lifts Armenia Transit Ban

Azerbaijan’s President Ilham Aliyev began a state visit to Kazakhstan on Monday with a series of high-level meetings and a significant policy shift: Baku is lifting all restrictions on the transit of goods to Armenia. The move, announced during joint talks with Kazakh President Kassym-Jomart Tokayev in Astana, is one of the most concrete regional gestures since the end of the Second Karabakh War. The visit began with an official welcoming ceremony at Akorda Presidential Palace in Astana, where Presidents Kassym-Jomart Tokayev and Ilham Aliyev reviewed an honor guard before holding bilateral talks and chairing the second meeting of the Kazakhstan–Azerbaijan Supreme Intergovernmental Council. Speaking at a joint press briefing after the meeting, Aliyev confirmed that, “All restrictions on the transit of goods from Azerbaijan to Armenia and from third countries to Armenia through Azerbaijan have been lifted.” While no formal agreement was signed on Monday, the announcement is being viewed as a confidence-building measure at a moment of cautious diplomacy in the South Caucasus. Tokayev welcomed the development and stressed the importance of expanding cooperation between Kazakhstan and Azerbaijan in key sectors such as transport and energy. Ties on a Strategic Track Aliyev’s visit comes as Kazakhstan and Azerbaijan are expanding cooperation in multiple areas, including rail, ports, digital infrastructure, and energy. Monday’s talks produced several new accords and project announcements, including commitments to expand freight flows along the Trans-Caspian International Transport Route (Middle Corridor) - a logistics network connecting China to Europe via Central Asia, the Caspian Sea, and the South Caucasus. Since Russia’s 2022 invasion of Ukraine upended established overland trade routes, the corridor’s importance has surged, with Astana and Baku positioning themselves as key actors in a reconfigured Eurasian logistics network that bypasses Russian territory. In his welcoming address, Tokayev framed Aliyev’s state visit as of “critically important significance for the further development of our strategic partnership.” Tokayev described the relationship as “allied in nature,” calling Azerbaijan “a regional power that has strengthened its authority on the international stage.” He emphasized that developing multifaceted cooperation “remains a priority” and highlighted trade, economic, and political partnership as key goals. “Azerbaijan is a special country for Kazakhstan, a fraternal state,” Tokayev stated. “We are united by common historical roots, a rich spiritual and cultural heritage, and, ultimately, a shared mentality and outlook on developments. On this unshakable foundation, we are successfully developing our multifaceted cooperation.” Aliyev, in turn, praised Kazakhstan’s ongoing political and economic reforms, saying his country “fully supports [Tokayev’s] course of modernization” and is aiming to “strengthen cooperation in all areas” In a related development, Azerbaijan’s state energy firm SOCAR and Kazakhstan’s sovereign wealth fund Samruk-Kazyna are expected to deepen their collaboration in upstream energy projects and petrochemical exports, though no new energy deals were signed on Monday. Transit Opening to Armenia: Why Now? Aliyev’s announcement on transit restrictions - made in Astana, not Baku - was notable not just for its content, but its timing and setting. Since the end of the 2020 Second Karabakh...

Bilateral Trade

Uzbekistan-Turkey Trade Reaches $2.6 Billion as Customs Cooperation Deepens

Uzbekistan and Turkey have significantly expanded their trade partnership, with bilateral trade turnover reaching $2.6 billion, according to the State Customs Committee of Uzbekistan. The milestone was announced during the fifth meeting of the Uzbekistan-Turkey Joint Customs Council, held in the historic city of Khiva. Friendly ties between the leaders of the two countries have laid the foundation for enhanced cooperation across a broad range of sectors, including politics, trade, investment, culture, and humanitarian initiatives. Since the inaugural Joint Customs Council meeting in 2018, trade turnover between the two countries has grown by 35%, rising from $1.9 billion to $2.6 billion by the end of 2024. Officials called this an impressive achievement in the context of ongoing global economic challenges and noted that there is still considerable room for further growth through deeper customs collaboration. One of the most impactful developments has been the 2022 agreement on the exchange of advance information on goods and vehicles. The agreement is currently undergoing preparations for full-scale implementation. Additionally, the two countries have improved mechanisms for foreign trade data exchange and made progress in addressing statistical discrepancies during a bilateral meeting in Samarkand in September. The next round of talks on this issue is scheduled to take place in Turkey. Another key topic at the Khiva meeting was the mutual recognition of authorized economic operators (AEOs), a proposal first introduced at the 11th meeting of customs authorities from Turkic states, held in Kazakhstan. A draft agreement on mutual recognition is currently under review by the Turkish side. Over the past five years, Uzbekistan’s trade volume managed by AEOs has more than doubled, increasing from $1.3 billion in 2020 to $2.7 billion in 2024. Council members also reviewed a joint cooperation plan for 2025-2026, which aims to further strengthen economic relations and streamline customs procedures.

Uzbek-U.S. Relations

Washington and Tashkent Push for More Trade and Investment

Speaking at the United Nations in New York on September 23, President Mirziyoyev of Uzbekistan made it clear that he no longer adheres to his predecessors’ post-Soviet policies of isolation and ‘go-it-alone’ economic development strategy - those days are over. Uzbekistan today - or so the evidence suggests - is more open for business than at any time in its history, with the caveat that deals must be win-win, strategic, fair, and reciprocal. Though it’s unclear what that precisely entails, both Washington and Tashkent are clearly working to accelerate capital and trade flows. “[Our] top-priority goal”, Mirziyoyev said at the United Nations, “is to fundamentally transform the lives of each and every family and citizen in our country, to enhance human dignity and wellbeing.” These are not mere words, but stand at the core of Uzbekistan’s efforts to build a new nation on the back of its - until recently - entirely archaic Soviet era socio-economic institutional structures and often ossified old ways of thinking. With this in mind, the main event of Mirziyoyev’s recent New York visit - besides his meeting with President Trump - was the high-level US-Uzbekistan investment roundtable with senior executives of major U.S. corporations and financial institutions. The roundtable was more than just symbolic. Its strong turnout underscored both the U.S. and Uzbek commitment to advancing joint initiatives in key sectors, including strategic minerals, transport infrastructure, energy, and smart agriculture. Top executives from Boeing, Citigroup, BNY Mellon, NASDAQ, Nvidia, Mastercard, Visa, General Motors, Jefferies, Oppenheimer, Cleveland Clinic, Cargill, and other U.S. corporations descended on the meetings in force, clearly eager to court the president and his team. [caption id="attachment_37146" align="aligncenter" width="1280"] Image: president.uz[/caption] At their face-to-face meeting, President Trump personally congratulated Mirziyoyev on the landmark $8 billion Boeing-Uzbekistan Airways deal, projected to generate over 35,000 U.S. jobs – that in itself is not news. Rather, the NY business roundtable appears to have signaled that the American business community is more than just sniffing around for deals. Undoubtedly, a key force behind this growing interest is Washington’s expanding engagement with Uzbekistan. Highlighting Washington’s strategic swing towards Uzbekistan, Mirziyoyev, Sergio Gor, U.S. Special Envoy for South and Central Asian Affairs, and William Kimmitt, Under Secretary of Commerce for International Trade, attended the signing ceremony of bilateral agreements, which ranged from transport, logistics and AI to mining, healthcare, and financial services. Their presence helped move discussions from initial interest to serious dealmaking. To dispel investor uncertainty related to sovereign risk and other hidden booby traps often embedded in cross-border investment agreements, Mirziyoyev declared: “I assure you, I personally guarantee the success of U.S. companies operating in Uzbekistan. At the Ministry of Investments, a dedicated Deputy Minister for U.S. Affairs has been appointed. He will accompany you 24/7.” While this makes plain Uzbekistan’s shift from aid recipient to active economic player, it’s also an attempt to shore up “investor butterflies” who are wary of corruption and shaky legal remedies in the event of contract disputes. Moreover, recognizing that companies...