Economic Integration - The Times Of Central Asia

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Organization of Turkic States

Turkic States Set to Expand Mutual Trade and Strengthen Economic Integration

The 14th meeting of ministers responsible for economy and trade of the Organization of Turkic States (OTS) was held on February 20 in Turkistan, Kazakhstan. The gathering brought together ministerial delegations from member states to advance economic cooperation, deepen trade ties, and promote sustainable and inclusive growth across the Turkic region. Founded in 2009 to foster comprehensive cooperation among Turkic-speaking nations, the OTS includes Azerbaijan, Kazakhstan, Kyrgyzstan, Turkey, and Uzbekistan as full members. Turkmenistan, Hungary, and Northern Cyprus participate as observers. According to the OTS Secretariat, the Turkic region recorded an average economic growth rate of 6.86% in 2025, more than double the global average. Despite this performance, OTS Secretary General Kubanychbek Omuraliev called for intensified efforts to expand intra-regional trade. Omuraliev highlighted ongoing negotiations on the Agreement on Services and Investment Facilitation, describing it as a decisive step toward deeper economic integration. He also pointed to strengthened institutional mechanisms, including the Council of Central (National) Banks of the OTS, the Turkic Green Finance Council, enhanced cooperation among Financial Intelligence Units and Competition Authorities, and closer coordination between the Turkic Investment Fund and the Union of Turkic Chambers of Commerce and Industry (TCCI). Delegations discussed practical measures to increase intra-OTS trade, improve the investment climate, and enhance regional connectivity. Participants emphasized the need for coordinated policies to reduce trade barriers, support small and medium-sized enterprises, and facilitate cross-border commerce. Kazakhstan’s Deputy Minister of National Economy, Asan Darbayev, underscored the symbolism of holding the meeting in Turkistan, a historic spiritual center of the Turkic world and a key node of the ancient Silk Road. He noted that the OTS is steadily evolving from a dialogue platform into a mechanism for practical cooperation, building new value chains and expanding trade links. In 2025, mutual trade among OTS member states exceeded $11.9 billion. Kazakhstan’s largest trade volumes were with Turkey ($4.9 billion), Uzbekistan ($4.3 billion), Kyrgyzstan (nearly $2 billion), and Azerbaijan ($425 million). Investment ties are also strengthening. Between 2005 and 2025, foreign direct investment from OTS countries into Kazakhstan surpassed $6.3 billion. Over the same period, Kazakh investments in OTS economies reached $5 billion, including more than $1.3 billion in 2025 alone. The meeting concluded with the signing of a Memorandum of Understanding on Partnership in Trade and the adoption of a Roadmap for Cooperation in Economy, Trade, Investment, and Finance. As previously reported by The Times of Central Asia, in December 2025 the Board of Governors of the Turkic Investment Fund announced that the fund would begin operations in the first quarter of 2026. Headquartered in Istanbul, the Turkic Investment Fund is the first joint financial institution established by OTS member states. Its mandate is to promote economic cooperation, boost intra-regional trade, and finance major joint initiatives aimed at strengthening long-term regional integration.

EAEU

Tokayev Sets Agenda for Kazakhstan’s 2026 EAEU Chairmanship

Kazakhstan has assumed the rotating chairmanship of the Eurasian Economic Union (EAEU) for 2026, pledging to focus on digital transformation, logistics integration, and the removal of internal trade barriers across the bloc. In a statement published on December 31, 2025, President Kassym-Jomart Tokayev outlined five key priorities for Kazakhstan’s EAEU presidency. The EAEU includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, and facilitates the free movement of goods, services, capital, and labor among its members. Artificial Intelligence and Economic Integration Tokayev identified artificial intelligence (AI) as a vital tool for deepening integration within the bloc. AI technologies, he said, are already being used to forecast trade flows and assess the impact of tariffs and trade agreements on member economies. Kazakhstan, which has set a national goal of becoming a digital nation, expressed readiness to share its expertise with other EAEU members in areas such as AI, digital regulation, and economic transformation. Tokayev proposed the adoption of a Joint Statement on the Responsible Development of Artificial Intelligence at the 2026 Eurasian Economic Forum in Astana. The document would define a new framework for digital cooperation within the bloc. Positioning the EAEU as a Eurasian Logistics Hub Highlighting the EAEU’s geographic position as a natural bridge between East and West, Tokayev called for transforming the bloc into a leading logistics hub for the Eurasian continent. He emphasized the need to modernize transport, customs, and logistics infrastructure, and to develop international transport corridors and multimodal transport solutions. He also proposed an integrated, AI-based cargo flow management system across the EAEU to reduce delivery times, cut costs, and enhance the bloc’s global competitiveness in logistics. Digitalizing Industry and Agriculture Calling industry and agriculture the economic foundation of the EAEU, Tokayev urged deeper cooperation to produce globally competitive products. While financial mechanisms for joint projects already exist, he argued that more emphasis should be placed on innovation-led initiatives. He proposed launching demonstration centers, automation startups, and competence hubs to drive digitalization at both enterprise and farm levels. Barrier-Free Trade as a Core Principle Tokayev stressed the elimination of administrative and regulatory barriers within the bloc as a central priority. He criticized artificial restrictions on trade, constraints on the movement of citizens, and long freight queues at borders. He also warned against the use of customs procedures and regulatory controls, including sanitary, veterinary, and phytosanitary measures, as tools of political or economic leverage. To address this, he proposed deploying AI to monitor legislative initiatives across the EAEU and flag potential internal trade barriers at an early stage. Expanding External Economic Ties Kazakhstan’s chairmanship will also focus on expanding the EAEU’s external partnerships. In 2025, the bloc signed Free Trade Area agreements with Mongolia and Indonesia and concluded an Economic Partnership Agreement with the United Arab Emirates. Tokayev said greater attention will be paid to building economic ties with countries in the Global South, the Arab world, Southeast Asia, Africa, and regional economic organizations. Macroeconomic Context Tokayev’s agenda is being launched against a backdrop of solid macroeconomic performance...

SCO Summit

Central Asia Advances Agenda at Record-Breaking SCO Summit in Tianjin

At the opening ceremony of the SCO Summit in Tianjin on August 31, Chinese President Xi Jinping, Russian President Vladimir Putin, and India’s Prime Minister Narendra Modi joined Central Asian leaders in a group photo. The Tianjin summit - China’s second time hosting the SCO and its “largest-ever” summit - was attended by all five Central Asian presidents alongside a host of key countries. In his welcome speech, Xi highlighted that the SCO now bears “greater responsibility” for safeguarding regional peace and stability, and said the summit was expected to produce a new 10-year development strategy. Xi proposed fast-tracking an SCO development bank, pledging 2 billion yuan ($280 million) in aid plus 10 billion yuan in loans to seed the fund. Xi also urged members to oppose a “Cold War mentality” and support an inclusive, multilateral trading system in a pointed rebuke to recent U.S. tariffs. Central Asian Leaders and Their Messages Kazakh President Kassym-Jomart Tokayev opened the summit for his delegation, thanking Xi and praising China’s “consistent policy aimed at strengthening security, stability, economic cooperation, and cultural ties within the SCO framework.” In his address, Tokayev marked the symbolic 80th anniversaries of the end of World War II, noting the value of unity and solidarity which he said the SCO embodies. Tokayev reaffirmed Kazakhstan’s support for a multipolar world order, respect for sovereignty, and mutually beneficial trade and investment, and pledged to keep combating the “three evils” of terrorism, separatism, and extremism. Beyond the opening remarks, Central Asian leaders used the summit to lay out their strategic priorities. Speaking at the heads-of-state meeting, President Shavkat Mirziyoyev of Uzbekistan called for further reform of SCO institutions and expansion of its dialogue partners. Mirziyoyev advocated for new cooperation mechanisms - a regional center for critical materials, a “Unified SCO Transport Space” linked to China’s Belt and Road Initiative, digital platforms, and green energy corridors - and proposed measures to boost intra-regional trade. Notably, Mirziyoyev urged the signing of an Agreement on Trade Facilitation, saying it “will give a boost to the growth of intra-regional trade within the SCO area.” In his closing remarks, he congratulated Kyrgyzstan’s Sadyr Japarov on assuming the SCO chairmanship for 2026, setting up the next summit. Tajik President Emomali Rahmon did not address the leaders’ meeting, but in a pre-summit interview, he highlighted China’s role in the SCO, crediting China with significant investment in Tajik infrastructure and energy, and welcoming Beijing’s proposal to locate an SCO Anti-Drug Center in Dushanbe. "We are confident that the center will make tangible contributions to strengthening regional cooperation and combating illicit drug trafficking," he stated. As a founding member, Rahmon stressed that the SCO’s top priority has long been Central Asian security and said that Tajikistan fully backs China’s Tianjin agenda, citing Beijing’s support for roads, tunnels, and power lines in Tajikistan. The incoming 2026 chair, Sadyr Japarov of Kyrgyzstan, met with Xi on August 31, reviewing plans to deepen all-around cooperation. Xi stated that China will fully support Kyrgyzstan in...

Eurasian Economic Union

At EAEU Forum, Kyrgyzstan Calls for Integration in Trade, Logistics, and Migration

At the 4th Eurasian Economic Forum in Minsk, marking the 10th anniversary of the Eurasian Economic Union (EAEU), Kyrgyzstan highlighted ongoing internal barriers that continue to hinder its development. Chief among them are trade delays, logistical bottlenecks, and persistent challenges in labor migration. Deputy Minister of Economy Sultan Akhmatov reaffirmed Kyrgyzstan’s commitment to Eurasian integration and strengthening economic ties with other EAEU member states. According to the ministry’s press office, Akhmatov emphasized the need for deeper investment cooperation and expressed confidence that enhanced integration would bolster regional stability and mutual economic growth. He also advocated for expanded academic exchanges, the development of digital and vocational education, and the creation of joint research platforms across the EAEU. Yet, alongside these ambitions, Akhmatov pointed to systemic obstacles. He urged the removal of trade and customs barriers that burden importers and exporters at border checkpoints. He also emphasized the importance of mutual recognition of quality certifications and ensuring labor mobility within the Union. Labor Migration: An Economic Lifeline Labor migration remains a crucial pillar of Kyrgyzstan’s economy. In 2024, remittances from Kyrgyz migrants, most of whom live and work in Russia, reached $3 billion, equivalent to 24% of national GDP. This figure nearly matches the country’s total exports of $3.8 billion during the same period. However, the number of Kyrgyz labor migrants in Russia has been steadily declining. First Deputy Prime Minister Daniyar Amangeldiev attributed this trend to both domestic economic improvements and new restrictions introduced by Russian authorities, including changes to migration law. As of 2024, foreign workers in Russia are required to sign one-year contracts with employers, a condition that has created legal uncertainty and discouraged long-term employment. “I Left Moscow Because the Rules Changed” Aziret Abdiev, a Kyrgyz welder who worked in Moscow for nearly a decade, shared his reasons for leaving: “I didn’t leave because I disliked the work. I spoke fluent Russian, had a steady job, and was valued for my skills. But over the past year, the pressure increased, inspections, bureaucracy, hostility. It became clear I couldn’t continue. Now I’ve applied for a Schengen visa and will be heading to Lithuania to work in a metal factory.” Expert Opinion: Migration as a Core Integration Priority Kyrgyz experts argue that labor migration is central to the country’s national interest. Raising the issue at the Minsk forum, they contend, was both pragmatic and necessary. “For Kyrgyzstan, labor migration is more than an economic category. It is a matter of social stability, foreign currency inflows, and the future of entire generations,” political analyst Bakyt Baketaev told The Times of Central Asia. According to official statistics, up to one million Kyrgyz citizens work abroad, primarily in EAEU member states. This makes mutual recognition of qualifications, access to social protections and healthcare, and the safeguarding of migrant rights critical priorities for Kyrgyz policymakers. Baketaev believes progress is possible, if Kyrgyzstan acts consistently and professionally while building coalitions within the EAEU. He notes that other member states face similar challenges: “There is room...

WTO

Uzbekistan Completes Bilateral WTO Talks with U.S.

Uzbekistan has successfully concluded bilateral negotiations with the United States as part of its efforts to join the World Trade Organization (WTO), according to Azizbek Urunov, Special Representative of the President of Uzbekistan for the WTO. Urunov announced the milestone on his LinkedIn page. “Uzbekistan and the United States signed today, on December 19, 2024, the Protocol on the completion of the bilateral market access negotiations within Uzbekistan’s WTO accession,” Urunov wrote. The protocol was signed by Deputy Prime Minister Jamshid Khodjaev and U.S. Trade Representative Katherine Tai. Urunov described 2024 as a “historic year” for Uzbekistan’s WTO membership process, noting significant progress achieved by the end of the year. Expressing gratitude, Urunov commended the U.S. negotiating team for its constructive engagement and lauded the dedication of Uzbekistan’s negotiators. He emphasized the country’s commitment to finalizing its WTO accession by 2026, under the leadership of President Shavkat Mirziyoyev. In addition to the United States, Uzbekistan has also concluded bilateral negotiations with China, signaling accelerated efforts to meet its WTO membership target.

WTO

WTO Momentum: Uzbekistan Wraps up Talks with U.S.

Uzbekistan has taken another big stride in its march toward membership in the World Trade Organization, a goal that it hopes to finalize ahead of the WTO ministerial meeting in the spring of 2026. A bilateral agreement with the United States has been reached after 14 months of negotiations, according to Azizbek Urunov, Uzbekistan’s chief negotiator on WTO accession. Uzbekistan has now completed talks with 21 countries as it seeks to implement reforms and integrate more closely with the global economy, demonstrating considerable momentum toward WTO accession since no deals had been negotiated at the beginning of 2023. “It has been an adventurous journey, tough but substantive negotiations,” Urunov said after the talks with American counterparts last week. Uzbekistan started the WTO accession process in 1994, several years after independence from the Soviet Union, and then dropped the effort a decade later. It resumed the campaign a few years ago. Johanna Hill, deputy director-general of the WTO, said last month that Uzbekistan’s goal was to “reduce the number of outstanding bilateral negotiations to under 10 WTO Members by next year.” [caption id="attachment_25176" align="aligncenter" width="1149"] Uzbekistan's accession process; image: WTO[/caption] Uzbekistan is pursuing reforms in the role of state trading enterprises, exports restrictions and subsidies, technical barriers to trade and other areas, according to Hill. "Uzbekistan has been one of the most active acceding governments of late. It has pushed ahead with economic reform, in the strategic region of Central Asia, with WTO accession very high on the government's agenda,” she said. Hill cited a WTO report this year that says economies reforming their markets during WTO accession grew on average 1.5% more than economies that did not reform. The WTO report maintains that trade and more global cooperation are critical to fostering equality and inclusivity, while acknowledging rising geopolitical tensions, measures to restrict trade, greater urgency surrounding the push for sustainability and other challenges. Some analysts point to the WTO’s ministerial conference in Abu Dhabi, United Arab Emirates earlier this year as a showcase for the troubles that the organization is facing. “On the critical agenda items - agricultural trade, fisheries subsidies, and reform of the WTO’s dispute-settlement mechanism - ministers simply kicked the can down the road, undertaking to continue work and once more extend deadlines that few expect to be met,” wrote Evan Rogerson, an analyst at the S. Rajaratnam School of International Studies in Singapore. His commentary on the meeting was among several presented by the Council of Councils, an international group of policy institutes.