International trade - The Times Of Central Asia

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Kazakhstan Opens Pavilion in Uzbek-Afghan Border Trade Center

Kazakhstan’s Ministry of Trade and Integration has announced the opening of a trade pavilion showcasing Kazakh products at the Termez International Trade Center, located in the town of Termez, Uzbekistan, near the Afghan border. The pavilion is expected to serve as a strategic platform for promoting Kazakh goods in the markets of Uzbekistan and Afghanistan. The Termez International Trade Center is a crucial hub at the crossroads of Central Asian trade routes, facilitating significant trade flows between Uzbekistan and Afghanistan. Opened on August 29, the center was inaugurated by Uzbek Prime Minister Abdulla Aripov and acting Afghan Deputy Prime Minister Abdul Ghani Baradar. The facility includes retail spaces, hotels, a medical center, and other amenities. Notably, it supports transactions in multiple currencies, such as U.S. dollars, euros, rubles, and yuan. Afghan citizens can visit and conduct trade at the Termez center for up to 15 days without requiring an Uzbek visa. Kyrgyzstan has also secured a presence at the Termez International Trade Center. As The Times of Central Asia previously reported, on November 11, the Kyrgyz Ministry of Economy and Commerce acquired a trade pavilion, providing a strategic foothold to expand Kyrgyzstan’s influence in the markets of Uzbekistan and Afghanistan. Kazakhstan and Kyrgyzstan have both removed the Taliban from their lists of terrorist organizations, aligning with broader efforts by Central Asian nations to deepen trade and economic ties with Afghanistan.

International trade Economic Cooperation Silk Road Economic Belt Xinjiang Export/Import China

Kazakhstan, Xinjiang, and Hong Kong Forge Trilateral Partnership to Boost Trade, Investment, and Connectivity

Kazakhstan, China’s Xinjiang Uyghur Autonomous Region (XUAR), and the Hong Kong Special Administrative Region have agreed to establish a joint mechanism for trilateral cooperation. The agreement was reached on December 5 during a meeting in Urumqi, Xinjiang, attended by Kazakhstan's Vice Prime Minister Serik Jumangarin, XUAR Party Committee Secretary Ma Xingrui, and Hong Kong’s Secretary for Commerce and Economic Development Algernon Yau. At the meeting, Ma Xingrui underscored Xinjiang’s strategic role as a bridge connecting Kazakhstan with Hong Kong and the broader Belt and Road Initiative. Highlighting Kazakhstan as a critical transport hub linking Europe and Asia, and Hong Kong as a global trade and logistics center, Ma proposed developing a framework for collaboration. The suggested mechanism would focus on boosting investment and strengthening cooperation in key sectors, including finance, energy, agriculture, logistics, and cultural exchanges such as education, healthcare, tourism, and scientific research. Vice Prime Minister Jumangarin proposed establishing a Kazakhstan-Xinjiang-Hong Kong Cooperation Council to create actionable strategies for enhancing investment, trade, and economic ties. He suggested hosting the council’s inaugural meeting in Kazakhstan next year. Jumangarin also highlighted China’s significant investment in Kazakhstan, noting 145 joint projects worth $38 billion and 5,000 joint ventures currently operating in the country. He invited businesses from Hong Kong and Xinjiang to collaborate on establishing production facilities in Kazakhstan, particularly for the deep processing of agricultural raw materials. “Kazakhstan is a major exporter of grain and oilseed products, with growing livestock exports,” Jumangarin said. “We encourage businesses from Hong Kong and Xinjiang to partner with us in producing value-added food products.” Hong Kong’s Secretary for Commerce, Algernon Yau, emphasized the city’s status as the world’s third-largest financial center and a global aviation hub connecting over 200 destinations. He welcomed Kazakh enterprises to register in Hong Kong, highlighting the city’s strong ties with ASEAN countries, which could provide Kazakh companies with expanded access to those markets. In a separate meeting, Jumangarin and Ma Xingrui discussed plans to double trade turnover between Kazakhstan and Xinjiang. XUAR is Kazakhstan’s largest trading partner among Chinese regions, accounting for nearly half of the bilateral trade volume. In 2023, trade between Kazakhstan and XUAR grew by 62%, reaching $20.3 billion. During the first nine months of 2024, trade increased by another 22.46%, reaching $17.67 billion. Both sides are working toward the goal set by the presidents of Kazakhstan and China to raise overall trade turnover to $100 billion. Another key topic was the development of river transportation as an alternative to road and rail routes. Kazakhstan proposed creating a multimodal transit corridor through Russia, Kazakhstan, and China using the transboundary Irtysh River, with initial freight traffic volumes projected at 2–2.5 million tons. Additionally, a potential route along the transboundary Ili River was discussed, linking the Kazakh city of Konayev with the Chinese city of Yining. The agreements reached at the trilateral meeting represent a significant step toward closer collaboration between Kazakhstan, Xinjiang, and Hong Kong. With plans to enhance trade, investment, and infrastructure development, the partnership holds great...

Government WTO International Cooperation International trade economic

Uzbekistan Completes Key Step in WTO Accession with China Agreement

Uzbekistan has successfully concluded bilateral negotiations with China regarding its accession to the World Trade Organization (WTO). Azizbek Urunov, Special Representative of the President for the WTO, announced this milestone in a LinkedIn post. “[It was a] very short but productive visit to Beijing! Yesterday, we completed bilateral negotiations on Uzbekistan’s accession to the WTO with the People’s Republic of China,” Urunov wrote. He expressed gratitude to China’s Ministry of Commerce, Deputy Minister Li Fei, Director Li Defeng, and their teams for their cooperation. “[It is] very important at [the] year-end to finish negotiations with the two biggest global trade players – the United States and China. Twenty-two countries are there, a few left!” The Times of Central Asia reported that this achievement follows Uzbekistan’s recent finalization of WTO accession negotiations with the United States, Uzbekistan’s WTO accession is a cornerstone of the country’s ongoing economic reforms, which aim to integrate its economy into the global trade system. Johanna Hill, WTO Deputy Director-General, praised Uzbekistan’s progress: “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.” Hill referenced a WTO report indicating that countries implementing market reforms during WTO accession experience growth rates 1.5% higher than those without such reforms. With negotiations with major economies like the United States and China now complete, Uzbekistan is edging closer to its goal of WTO membership, a move poised to boost its global trade prospects and economic development.

Export/Import International trade Manufacturing Automotive Legislation

Why Kazakhstan is Tightening Requirements for Importing Foreign Cars

The Bureau of National Statistics (BNS) of Kazakhstan predicts a significant decline in domestic motor vehicle production in 2024, with the largest drops—over 14%—in the car and truck sectors. Experts attribute this downturn to challenges in sourcing components and the prevalence of "gray" car imports. In response, the government will implement stricter regulations on importing foreign cars starting December 1. In 2023, Kazakhstan’s official car sales market surged by 61% compared to the previous year. Official dealers reported 198,686 cars sold, with 70.7% (approximately 150,000 vehicles) produced domestically. However, by late 2023, experts were forecasting a sharp slowdown in domestic production growth. “Production declines reflect short-term logistical issues, such as securing equipment, raw materials, and components from neighboring countries. To address this, manufacturers are already committing to deepening technological processes for small-unit production. This involves investments in new equipment, expanded facilities, and workforce training,” said Anar Makasheva, President of the Kazakhstan Automobile Union (KAU). “By July 1, 2024, all new production facilities must produce at least one model using this method, while existing ones face the same requirement from January 1, 2026.” Artur Miskaryan, General Director of Kazakhstan's Automobile Market Monitoring and Analysis Agency (KAMMAA), agreed that localization requirements are affecting production rates. “Tougher localization demands mean enterprises are investing in infrastructure and training, which temporarily slows production,” he said. Miskaryan also cited logistical challenges at the Kazakhstan-China border, particularly with the delivery of components from China. While logistical issues may be resolved over time through domestic manufacturing of components, the problem of "gray" imports requires government intervention. “The issue of ‘gray’ imports has existed for a long time but escalated after customs policy adjustments in 2022 allowed for the legalization of such vehicles imported from EAEU countries,” Miskaryan explained. These vehicles are sourced from various countries—cargo vehicles primarily from China and cars from South Korea, China, the U.S., and the UAE. Such imports often involve falsified environmental compliance documents, counterfeit exhaust system components, or violations of design safety certifications. Miskaryan emphasized the need for stricter controls on the technical and environmental standards of imported vehicles. He noted, “Reducing government leniency toward imports could follow the example set by neighboring countries, addressing these issues effectively.” Last year alone, gray imports accounted for 345,000 vehicles—three out of every five cars imported. This undermines domestic manufacturers and poses risks to consumers, as these vehicles often fail to meet Kazakhstan’s environmental and safety standards or adapt to local fuel and climate conditions. Prime Minister Olzhas Bektenov has called for decisive action against gray imports. “This is a serious issue, creating unfair competition for domestic automakers. Customs authorities, the Standardization Committee, and law enforcement must address it,” Bektenov said at a government meeting. “Manufacturers cannot compete with vehicles labeled Euro5 but meeting only Euro2 standards. This situation demands stricter oversight.” The government’s first step has been to limit individual car imports. Starting December 1, an individual can import only one vehicle per year. Additional vehicles registered by the same person within the same year...

Border Trade Routes Foreign Trade International trade Afghanistan Trade

Kyrgyzstan Secures Pavilion in Uzbek-Afghan Border Trade Center

The Ministry of Economy and Commerce of Kyrgyzstan has acquired a trade pavilion at the Termez International Trade Center in the town of Termez, Uzbekistan, near the Afghan border. This purchase agreement was signed on November 11 between the ministry and LLC Termez International Trade Centre, the center's management company. This pavilion offers Kyrgyzstan a strategic foothold to expand its presence in the markets of Uzbekistan and Afghanistan, promoting the export of Kyrgyz agricultural and industrial goods while enabling direct interaction with Afghan business partners. The Kyrgyz government has expressed an ongoing interest in strengthening economic relations with Afghanistan. From January to August 2024, trade between the two countries reached $14 million, with Afghan exports to Kyrgyzstan accounting for $6 million of this total, as noted in a recent report. The Termez International Trade Center serves as a vital hub at the intersection of Central Asian trade routes, facilitating substantial trade flows between Uzbekistan and Afghanistan. Opened on August 29 by Uzbek Prime Minister Abdulla Aripov and the acting Afghan Deputy Prime Minister Abdul Ghani Baradar, the center features retail spaces, hotels, a medical center, and other amenities. It also supports transactions in multiple currencies, including U.S. dollars, euros, rubles, and yuan. Notably, Afghan citizens are allowed to visit and conduct trade at the Termez center for up to 15 days without requiring an Uzbek visa, enhancing accessibility for Afghan traders.

Agricultural Export International trade Export Food Security Food industry Agriculture China Turkey

Turkey Ready to Buy Kazakh Meat at Twice the Price Offered by China

Kazakhstan's Ministry of Agriculture is actively working to open the Turkish market to Kazakh meat exports. Deputy Minister Amangaly Berdalin reported that Turkish partners are willing to pay twice as much for Kazakh beef as China. The Ministry of Agriculture has previously pursued access to the Chinese market for Kazakh livestock products. In February, Beijing lifted restrictions on Kazakh livestock imports, potentially enabling Kazakhstan’s southeastern regions to resume exports of frozen beef and pork to China. However, significant export volumes to China have yet to materialize. Maksut Baktibayev, head of the Meat Union of Kazakhstan, explained that the agreement between the countries only allows exports from four meat processing plants in Kazakhstan, with a combined capacity of 8,000 tons of frozen beef. According to Berdalin, Kazakh producers are not utilizing even this limited capacity due to uncompetitive pricing. Chinese buyers offer $5.5 per kilogram of Kazakh beef, which is comparable to prices in Kazakhstan’s domestic market, ranging from 2,700 to 3,000 tenge ($5.4 to $6.1) per kilogram. Given these figures, transporting Kazakh meat to China is economically unviable for producers. In contrast, Turkey is prepared to pay nearly double, or $11 per kilogram, for Kazakh beef. "Our ministry’s objective is to open as many markets as possible for our producers, particularly those offering attractive prices,” Berdalin stated at the Vet Astana 2024 International Exhibition on Feed and Veterinary in Astana. “That is why our inspectors are actively collaborating with Turkish officials to understand their export requirements.” Berdalin noted that while specific export volumes of Kazakh beef to Turkey are not yet determined, there is optimism following a recent diplomatic visit. In August, Kazakhstan’s Minister of Agriculture Aidarbek Saparov visited Ankara, where business representatives from both countries signed contracts to supply Kazakh meat to Turkey, valued at $80 million over the coming years, contingent on Kazakhstan’s successful completion of required veterinary and epidemiological procedures. The Turkish market has historically been closed to most Kazakh livestock products due to restrictions related to animal diseases, with some bans in place for approximately 20 years. Turkish authorities lifted these restrictions in June 2024. Kazakh producers are now navigating an extensive certification process to gain market access. Some required tests must be conducted in third countries, prompting Kazakhstan to rebuild its own laboratory capabilities. Berdalin shared that the Kazakh government has allocated 3.8 billion tenge ($7.7 million) this year to support veterinary laboratories. "To export to a country, we must meet all its import requirements. For instance, to export our honey, we need to conduct 43 specific tests. Currently, we handle 20 in-house, but the remaining 23 are outsourced to laboratories in Latvia and Georgia,” Berdalin explained. In addition to Turkey, the Ministry of Agriculture is working to open European markets for Kazakh meat. Last year, Kazakhstan exported over 53,000 tons of meat and meat products valued at $153 million. Poultry was the largest export category, at nearly 32,000 tons, followed by beef at 15,800 tons. Primary export destinations included Uzbekistan, the UAE, Kyrgyzstan, Iran,...