Bilateral Trade - The Times Of Central Asia

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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...

International Diplomacy

Mirziyoyev Secures Spotlight During U.S. Visit

In a significant diplomatic breakthrough, Uzbekistan emerged as a standout player during this year’s United Nations General Assembly events in New York. President Shavkat Mirziyoyev not only secured a high-profile meeting with U.S. President Donald Trump, but also signed a landmark $8 billion deal with Boeing to purchase Dreamliner jets, a move that drew praise from Trump and captured the attention of the international business community. Trump publicly endorsed the agreement on social media, calling Mirziyoyev “a man of his word” and noting the deal would create “over 35,000 jobs” in the United States. Mirziyoyev’s visit included a high-level investment roundtable with executives from leading U.S. corporations and financial institutions. According to Forbes, trade between the two countries has quadrupled under Mirziyoyev’s leadership, with more than 300 American companies now active in Uzbekistan. Strategic sectors such as rare-earth metals and critical minerals took center stage during the discussions. Among the key meetings was one with the vice president of the Colorado School of Mines, who expressed support for establishing a research center in Uzbekistan. Other topics included joint initiatives in banking, information technology, transportation, and energy infrastructure. The scale of the Boeing deal served as a symbolic anchor to broader efforts: positioning Uzbekistan as a key connector between Central Asia and the Western economy. This aligns with a larger strategic pivot that analysts have long advocated. As U.S. engagement in Central Asia expands, countries like Uzbekistan are increasingly looking to diversify away from dependence on Russia and China. Forbes noted that the Trump administration is building on foundations laid by its predecessor by promoting regional initiatives such as the Zangezur Corridor, referred to as the “Trump Corridor”, aimed at linking Central Asia to global markets without passing through Russian territory. Mirziyoyev’s face-to-face meeting with Trump, followed by the public endorsement, also plays into shifting domestic narratives. It signals growing diplomatic credibility and a willingness to operate as an equal on the global stage. The convergence of political recognition and commercial investment may mark a turning point in Uzbekistan’s foreign policy, not just as a recipient of aid, but as a proactive economic actor. With the Boeing order and growing support from U.S. business leaders, Uzbekistan is staking its future on deepening ties with the West. Coupled with ongoing domestic reforms, the country is making a strategic bet that modernization and diversified partnerships will yield long-term dividends.