Bilateral Trade - The Times Of Central Asia

Viewing results 1 - 6 of 95

Kazakhstan and Turkmenistan Finalize $555 Million Investment and Trade Agreement

Kazakhstan’s Senate on September 4 ratified a bilateral agreement with Turkmenistan aimed at bolstering mutual investment and economic cooperation, Kazinform reported. The agreement, which sets out conditions for the promotion and protection of investments, is expected to create a more transparent and predictable environment for investors from both countries. Senator Amangeldy Nugmanov emphasized that the agreement provides comprehensive legal safeguards for investment across all sectors, from state-led initiatives to private enterprise. For the first time at the interstate level, Kazakhstan and Turkmenistan have formalized clear guarantees to protect investor interests. The agreement includes provisions for dispute resolution, including access to international arbitration, and ensures fair and equal treatment for foreign investments. Energy Sector as Strategic Priority Energy cooperation figures prominently in the agreement. Kazakhstan has expressed readiness to invest in the development of Turkmenistan’s gas condensate fields and to support the expansion of pipeline infrastructure. Nugmanov highlighted a separate agreement signed between Kazakhstan’s QazaqGaz and Turkmenistan’s state concern Turkmengaz, describing it as a “golden bridge” that will enhance both nations' economic prospects and contribute to regional energy security. Trade and Transport Ties Expand Senator Sergey Ershov noted that bilateral trade reached $555.7 million in 2024. Kazakh investors injected $16.1 million into Turkmenistan’s economy, while Kazakhstan received $400,000 in direct investment from Turkmenistan. Beyond energy, cooperation now includes rail, road, and maritime transport. Turkmenistan has also shown interest in modernizing armored vehicles and supplying spare parts to Kazakhstan. During a summit held in April, the presidents of both countries agreed to target $1 billion in annual trade turnover in the near future. They also underscored the strategic importance of expanding cooperation in energy and transport. Key projects under discussion include Kazakhstan’s potential participation in Turkmenistan’s Galkynysh gas field and the development of the Turgundi-Herat-Kandahar-Spin Boldak railway. The rail line, which would pass through Afghanistan, is seen as a means of diversifying trade routes and unlocking new regional markets.

Tokayev in Bishkek: Deals, Diplomacy, and a Golden Bridge

Kazakh President Kassym-Jomart Tokayev arrived in Kyrgyzstan on 21 August for an official visit that rolls into a full day of talks in Bishkek on 22 August, including a session of the Supreme Interstate Council. The Kyrgyz capital implemented rolling traffic restrictions around motorcade routes, a sign of how tightly choreographed the program is. The visit’s centerpiece is a Tokayev–Japarov meeting in both narrow and expanded formats, alongside a packed slate of bilateral events that underscore deepening political, economic, and cultural ties between the neighbors. Tokayev’s schedule blends state protocol with public-facing diplomacy. Alongside presiding over the seventh meeting of the Supreme Interstate Council, the two leaders are set to unveil the “Golden Bridge of Friendship” monument in Bishkek’s Yntymak Park - an attempt to give symbolic form to a relationship both sides have labored to institutionalize over the past two years. The program is also set to include the inauguration of the Consulate General of Kazakhstan in Osh, the launch of a branch of L.N. Gumilyov Eurasian National University in Kyrgyzstan’s south, the third Kyrgyz-Kazakh Youth Forum, and Days of Kazakhstan Cinema - events designed to anchor cooperation beyond chancelleries and boardrooms. This public show of diplomacy is being matched by concrete steps. The new Consulate General in Osh is intended to smooth consular services, support cross-border business, and expand cultural ties in a region where Kazakh–Kyrgyz trade and travel flows are accelerating. Central government, city, and regional officials joined Kazakh diplomats at the ribbon-cutting, underscoring the practical, day-to-day value for citizens who live and work across the southern corridor. Optics aside, the substance is in the talks. Astana and Bishkek have spent the last 18 months upgrading their legal architecture. In April 2024, the presidents signed a Treaty on Deepening and Expanding Allied Relations, moving the relationship beyond the basic language of partnership and into a framework that touches upon security, transport, energy, agriculture, and cultural cooperation. Kazakhstan’s Parliament later approved, and the president signed implementing legislation, putting the allied-relations commitments on a firmer legal footing domestically. This trip is widely viewed in both capitals as a chance to translate that framework into specific projects - some of which are already in motion. Trade and connectivity top the economic agenda. Bilateral trade hit roughly $1.7 billion in 2024, and both governments have repeatedly floated a target of $3 billion within the decade. The composition of flows is familiar: Kazakhstan ships metals, grain, fuels, and construction materials, while Kyrgyzstan supplies gold, coal, light-industry goods, and services. Reaching the next rung, however, will require more predictable border procedures, harmonized standards, and dedicated logistics capacity - areas where ministerial roadmaps are already in circulation. Energy and water cooperation is the other pillar. Kyrgyzstan’s Kambarata-1 hydropower project - envisioned as a 1,860 MW plant on the Naryn River - has become a regional test case for practical integration. Since mid-2024, Kyrgyzstan, Kazakhstan, and Uzbekistan have built a joint track with the World Bank and other partners to complete feasibility work, structure financing,...

Issyk-Kul Forum

Kyrgyzstan and Russia Sign $270 Million in Agreements at Issyk-Kul Forum

At the seventh Kyrgyz-Russian Economic Forum on the shores of Issyk-Kul, Kyrgyzstan and Russia signed nearly 30 agreements worth about US $270 million. The forum brought together around 1,000 representatives from government agencies, investment funds, businesses, and public organizations across member states of the Eurasian Economic Union (EAEU). In his address, President Sadyr Japarov said Kyrgyzstan has maintained average annual economic growth of 9 per cent since 2022, the highest rate among countries in the Commonwealth of Independent States and the EAEU. He described the forum as a vital platform for strengthening cooperation, exchanging experience, and fostering direct business ties. He also stressed the importance of technological independence, protection of digital data, and the development of national IT infrastructure. The agreements span energy, industry, transport, aviation, agriculture, the digital economy, education, and logistics. They include a US $55 million contract for Airports of Kyrgyzstan to acquire aircraft from a Russian manufacturer, a US $2.8 million memorandum for the purchase of an electric cruise ship, supply agreements for tractors, trucks, metal products, and machine tools, and plans for a milk processing complex. Additional deals cover financing arrangements for Kyrgyz companies to issue securities on the Russian market, an investment agreement with the Eurasian Development Bank to support projects through the Russian-Kyrgyz Development Fund, and a commitment by the Kyrgyz Green Energy Fund to purchase electricity from Russian suppliers. Roscosmos and the Kyrgyz Ministry of Digital Development also signed a memorandum on the peaceful exploration of space. First Deputy Prime Minister Daniyar Amangeldiev noted that during Kyrgyzstan’s decade as an EAEU member, the country has seen improvements in socioeconomic indicators, a decline in unemployment, and continued growth in priority sectors.

Bilateral Trade

Tajikistan and Flanders Explore Closer Ties in Industry, Tourism, and Trade

A delegation from the Belgian region of Flanders is currently visiting Dushanbe for official meetings aimed at expanding cooperation with Tajikistan. The visit, which began on August 11 at the invitation of the Dushanbe city authorities, will continue through August 16. The Flemish delegation is led by Jill Willems Suetens, head of the Protocol and Administrative Department. Focus Areas: Industry, Innovation, and Investment Talks are centered around collaboration in the light and textile industries, mechanical engineering, pharmaceuticals, food production, and artificial intelligence. Tourism and trade, meanwhile, have been highlighted as key priorities. The Belgian side has been invited to take part in upcoming events organized by the Ministry of Industry and the Dushanbe Invest 2025 International Investment Forum, scheduled for October. During their visit, the Flemish representatives have held meetings with senior officials from the Dushanbe city administration, the Ministry of Industry and New Technologies, the State Committee for Investment, the National Academy of Sciences, the Committee for Tourism Development, the Chamber of Commerce and Industry, the Smart City State Unitary Enterprise, and the International University of Tourism and Entrepreneurship. The State Committee for Investment presented Tajikistan’s potential to foreign investors, emphasizing tourism and trade as sectors with high growth prospects. To gain a deeper understanding of the country’s history and culture, the delegation is also visiting prominent sites such as the National Museum, the Kohi Navruz palace complex, the Central Mosque, the Plov culinary center, the Mehrgon market, the Gissar Fortress, and the Varzob region. The cultural itinerary aims to promote Tajikistan's tourism offerings and foster deeper exchange. Flanders: An Economic Powerhouse Flanders is one of Belgium’s primary industrial and commercial hubs and is home to the country’s largest ports, Antwerp, Bruges, Ghent, and Ostend. The region has a population of 6.8 million, comprising 58% of Belgium’s total population. In 2024, Flanders ranked 15th globally by export volume. Its main export commodities include chemical products, pharmaceuticals, transport vehicles, textiles, machinery, fruit, plastics, and precious stones. Trade between Tajikistan and Flanders surpassed €108 million in 2024. Tajikistan accounted for €102.36 million in exports, while Flanders exported €5.73 million worth of goods to Tajikistan.

China-Central Asia Trade Nearly Triples Since 2020

Trade between China and the countries of Central Asia reached $66.2 billion in 2024, nearly triple the 2020 level, according to the Eurasian Development Bank (EDB). Imports from China accounted for about 60% of total trade turnover. China’s largest trading partner in the region is Kazakhstan, with bilateral trade valued at $30.1 billion (46% of total China-Central Asia trade), followed by Uzbekistan at $18 billion (27%) and Turkmenistan at $10.6 billion (16%). China’s share in Central Asia’s overall trade turnover has risen sharply, from 17.7% in 2020 to 24.1% in 2024. However, the level of dependence on Chinese trade varies by country: Turkmenistan - 55% of its total trade is with China. Kyrgyzstan - around 35%. Kazakhstan, Uzbekistan, and Tajikistan - between 20-22%. The EDB estimates significant untapped trade potential of $39.3 billion, about 60% of the current turnover. This includes $32 billion in potential Chinese exports to Central Asia (such as automobiles, electronics, and consumer goods) and $7.3 billion in potential Central Asian exports to China (including copper products, gold, and uranium). With deepening economic ties and major infrastructure links through the Belt and Road Initiative, analysts expect China-Central Asia trade to continue expanding in the coming years.

Trade

Uzbek Trade Delegation Visits U.S. to Promote “Made in Uzbekistan” Exports

From July 23 to 29, a delegation from Uzbekistan’s Ministry of Investment, Industry and Trade (MIIT) visited the United States to promote Uzbek-produced goods, expand export channels, and strengthen bilateral trade ties, according to the ministry’s press service. As part of the mission, 25 Uzbek textile companies showcased their products under the national “Made in Uzbekistan” brand at three major trade exhibitions in New York: Texworld NYC, Apparel Sourcing USA, and Home Textiles Sourcing Expo. Delegates met with industry leaders and trade associations, including Bunzl plc, Levi Strauss & Co., PVH Corp., GIII Apparel Group, Kontoor Brands, American Eagle Outfitters, Tapestry Inc., Macy’s, the American Apparel & Footwear Association (AAFA), and the United States Fashion Industry Association (USFIA), to discuss integrating Uzbek brands into U.S. sourcing channels. In Washington, ministry representatives met with the U.S. Department of Commerce to explore opportunities for enhancing trade, reducing regulatory barriers, and increasing investment cooperation. They also engaged with the Commercial Law Development Program (CLDP) under the Commerce Department, agreeing to organize webinars and seminars aimed at helping Uzbek firms meet U.S. certification and packaging standards. A separate meeting with the U.S. Department of Agriculture and the U.S. Cotton Association addressed expanding Uzbekistan’s access to the GSM-102 export credit guarantee program, increasing credit limits, and launching a “Made from U.S. Cotton” initiative. The proposed initiative would allow processed Uzbek goods made from American cotton to carry the label in international markets. The delegation also explored ways to deepen investment cooperation with U.S. industry associations and develop mechanisms to integrate more Uzbek products into American retail and sourcing ecosystems. As previously reported by The Times of Central Asia, on April 30, U.S. Labor Secretary Lori Chavez-DeRemer announced the termination of more than $38 million in foreign aid programs during a cabinet meeting at the White House. This included funding for a labor rights initiative in Uzbekistan’s cotton sector. The program, launched in 2022 and scheduled to run through 2026, aimed to improve labor conditions and prevent forced labor. It received $2 million in its first year, with $1 million earmarked for 2025.