Bilateral Trade - The Times Of Central Asia

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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.

Bilateral Trade

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.

Agricultural Export

Kyrgyzstan Begins Dried Apricot Exports to China

Kyrgyzstan has launched exports of dried apricots to China, with the first 23-ton shipment dispatched on July 29. The delivery comes after Chinese authorities approved Kyrgyz dried apricots for import, following Kyrgyzstan’s successful compliance with Beijing’s sanitary and quarantine standards. According to the Kyrgyz Ministry of Water Resources, Agriculture and Processing Industry, this marks a significant step in expanding agricultural exports to China and sets the stage for broader trade in fruit and vegetable products. The milestone follows the July 11 signing of a bilateral agreement to construct a food safety and quarantine laboratory in Bishkek. The facility will test agricultural goods destined for China to ensure they meet the country’s stringent import regulations. Deputy Prime Minister Bakyt Torobayev noted that Kyrgyz-Chinese trade grew by 44.7% in 2024, reaching $5.3 billion. Exports from Kyrgyzstan to China surged to $2.04 billion, representing a 93-fold increase compared to 2023. Agriculture has emerged as a key area of bilateral cooperation. In 2024, trade in agricultural products between the two nations totaled $153.3 million, up by $33 million from the previous year. Kyrgyz authorities are now seeking to expand the list of approved exports. Negotiations are underway to finalize four additional protocols with China, covering dried fruits, cattle hides, meat, and animal feed. These efforts aim to diversify Kyrgyzstan’s agricultural exports and enhance its position in the Chinese market. Officials see China’s rising demand for agricultural imports as a major opportunity for Kyrgyz farmers and exporters, particularly as the country continues to invest in infrastructure and quality assurance systems to support trade growth.

Bilateral Trade

China Overtakes Russia as Tajikistan’s Top Trading Partner for the First Time

For the first time in over two decades, China has become Tajikistan’s largest trading partner, surpassing Russia in bilateral trade volume, according to newly released data from the Tajikistan Statistics Agency. A New Leader in Foreign Trade Between January and May 2025, trade between Tajikistan and China reached $964 million, an increase of nearly 30% compared to the same period in 2024. China's share in Tajikistan’s total foreign trade stood at 24.8%, edging ahead of Russia’s 23.2%. This surge was driven largely by Chinese exports to Tajikistan, which totaled $787 million. Tajik exports to China reached $177 million, leaving a significant trade imbalance in China’s favor, though the overall volume of bilateral engagement continues to rise rapidly. Russia had held the position of Tajikistan’s leading trade partner for more than 20 years. However, during the first five months of 2025, total trade between the two countries reached approximately $900 million. Of that, only $42 million represented Tajik exports to Russia, while Russian imports totaled $858 million. Despite a 9.3% increase year-on-year, the growth was insufficient to maintain its top position. Uzbekistan Reemerges as a Key Player Historically, Uzbekistan was Tajikistan’s main trade partner during the 1990s. In 1995, trade between the two countries reached $250 million, double the combined trade volume with other post-Soviet states at the time. However, political tensions toward the end of the decade led to a sharp decline, with trade falling to just $13 million by 2014. Following the election of Shavkat Mirziyoyev as President of Uzbekistan in 2016, bilateral relations have markedly improved. Trade between Tajikistan and Uzbekistan is once again on the rise, reaching $238 million in the first five months of 2025. China: Tajikistan’s Leading Investor and Creditor China’s growing economic influence in Tajikistan extends beyond trade. It is now the country’s largest foreign investor, having overtaken Russia in 2017. According to the State Committee for Investment and State Property Management, accumulated Chinese investment in Tajikistan totaled $5.1 billion as of Q2 2025. In comparison, Russian investments stand at approximately $2 billion, less than half. China is also Tajikistan’s largest external creditor. As of early 2025, Dushanbe’s debt to Beijing stood at around $1 billion, representing nearly one-third of the country’s total external debt. This strategic pivot in Tajikistan’s economic orientation reflects a broader regional trend. Across Central Asia, Beijing continues to expand its footprint through a combination of trade, infrastructure investment, financial lending, and diplomatic engagement.