Regional Cooperation - The Times Of Central Asia

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Uzbekistan and Turkmenistan Implement Free Trade Agreement

On February 25, 2025, the free trade agreement between Uzbekistan and Turkmenistan officially came into effect, eliminating customs duties on most goods produced in both countries, with certain exceptions. This landmark move aims to strengthen trade and economic ties between the two neighbors. The announcement was made by Uzbekistan’s Ministry of Investments, Industry, and Trade on March 7, following the completion of all legal procedures for the Protocol on Exceptions to the Free Trade Regime, signed on July 16, 2024. The protocol had been approved earlier by Uzbek President Shavkat Mirziyoyev through Resolution No. 29 on January 27, 2025. Key Provisions and Economic Sectors Under the new trade rules, Turkmenistan has removed customs duties on a range of key Uzbek exports, including the following items with their previous tariffs or taxes noted: Cement (100%) Textiles (50%) Furniture (50%) Glass containers (50%) Water heating boilers (15%) Plastic and polypropylene products (10%) Sausages and meat products ($2 per kg) Cottonseed oil ($1 per kg) Officials anticipate that the free trade system will boost economic activity between the two countries by facilitating business operations and encouraging investment. The Uzbek Ministry of Investments, Industry, and Trade, along with other government bodies, is working to help Uzbek businesses maximize the benefits of the new trade framework, whilst both governments expect the deal to accelerate industrial cooperation across sectors such as construction, agriculture, and manufacturing. Growing Trade Volume or a One-Way Street? The agreement reflects already expanding trade dynamics. According to TurkmenPortal, trade turnover between Uzbekistan and Turkmenistan increased by 23% in the first quarter of 2024 compared to the same period in 2023, reaching $455 million. Turkmen exports to Uzbekistan surged by 36%, totaling $407 million. Turkmenistan's imports from Uzbekistan experienced a 30% decline, however, dropping from $69.2 million to $48 million during the January- May period compared to the same timeframe in 2023. Strengthened Bilateral Relations and Regional Impact Nevertheless, the agreement represents more than economic policy and could underscore a new era of trust and cooperation. Both countries have worked to improve their relationship through proactive diplomacy, with recent high-level meetings - including those between Uzbek President Shavkat Mirziyoyev and Turkmen President Serdar Berdimuhamedov - emphasizing the shared goal of collaborating across trade, cultural, and political spheres. The free trade regime sets a benchmark for greater economic collaboration within Central Asia, whilst the elimination of tariffs and smoother trade between Uzbekistan and Turkmenistan could inspire similar agreements among neighboring countries. While challenges such as infrastructure harmonization and policy alignment remain, the benefits of this agreement showcase the potential for regional integration.

China Trade e-Commerce International trade Regional Cooperation

Kazakhstan and China Set to Expand Trade and E-Commerce

Trade between Kazakhstan and China continues to grow, reaching $43.8 billion in 2024, according to China’s General Administration of Customs. Kazakhstan’s exports to China amounted to $15.8 billion, marking a 9% increase from the previous year. These figures were announced by Han Chunlin, China’s newly appointed ambassador to Kazakhstan, during a meeting with Kazakh Minister of Trade and Integration Arman Shakkaliyev on February 8. “This trend confirms our steady progress toward the ambitious goal of doubling bilateral trade turnover in the near future,” the ambassador stated. Strengthening Trade and E-Commerce Cooperation The meeting focused on expanding Kazakh-Chinese trade and economic cooperation, with particular emphasis on e-commerce platforms. Shakkaliyev highlighted that bilateral trade reached a historic high in 2024 and reaffirmed Kazakhstan’s commitment to diversifying its exports while expanding the range of products supplied to China. He also announced plans for trade and economic missions in 2025, alongside Kazakhstan’s participation in major exhibitions in China. A key discussion point was the development of online trade through leading Chinese e-commerce platforms, including JD.com, Alibaba, and Douyin. Kazakhstan’s Growing Presence in Chinese E-Commerce Alibaba: Launched in 2022, Kazakhstan’s dedicated section on Alibaba now includes 290 domestic companies offering over 7,500 products. Total sales on the platform have already surpassed $260 million. JD.com: In 2023, JD.com opened a Kazakhstan section, featuring over 60 products. Revenue from Kazakhstani goods sold on the platform grew from RMB 1 million in 2023 to RMB 1.3 million in 2024. Kazakhstan’s e-commerce industry has seen rapid growth in recent years. According to the Ministry of Trade and Integration, online transactions from January to November 2024 totaled approximately 3.2 trillion KZT (over $6 billion), accounting for 14.5% of total retail trade. As Kazakhstan strengthens its trade ties with China, digital commerce is expected to play an increasingly important role in bilateral economic relations.

Trade Iran Regional Cooperation Bilateral Trade Bilateral Cooperation Foreign trade turnover

Iran’s Non-Oil Exports to Uzbekistan Rise by 18%

Iran’s non-oil exports to Uzbekistan increased by 18% in value and 14% in weight during the first nine months of the current Iranian year (March 20 - December 20, 2024), compared to the same period last year (March 21 - December 21, 2023), Trend reported, citing data from the Iranian Customs Administration. According to the report, Iran exported 414,000 tons of non-oil goods worth $292 million to Uzbekistan during this period. In the corresponding months of the previous Iranian year, exports totaled 364,000 tons, valued at approximately $248 million. Key Iranian Exports to Uzbekistan Iran’s main exports to Uzbekistan included: Milk and dairy products Petrochemicals Various types of pipes Glass containers Agricultural equipment Overall, Iran’s total trade turnover with Uzbekistan during the nine-month period reached 444,000 tons, valued at $358 million. Expanding Trade Ties with Kazakhstan In addition to strengthening economic relations with Uzbekistan, Iran is also deepening trade ties with Kazakhstan. As The Times of Central Asia reported, on January 30, Iranian Vice President Mohammad-Reza Aref met with Kazakh Prime Minister Olzhas Bektenov in Almaty to discuss trade and transport cooperation. Kazakhstan’s trade with Iran reached $296 million in 2024, an 8.1% increase from the previous year. Notably, Kazakhstan’s exports to Iran grew by 29.1%, reaching $100.6 million. Kazakhstan plans to expand exports of wheat and barley, while both sides discussed increasing cargo traffic and upgrading port terminals to facilitate trade.

Climate Change Adaptation Strategy Aral Sea Ecology Environmental Awareness Regional Cooperation

Turning the Tide and Tackling Pollution in Uzbekistan: Insights from the Head of Environmental Policy

In recent years, air pollution in Uzbekistan has become an issue of growing concern, while the drying up of the Aral Sea continues to draw global attention. The Times of Central Asia spoke with Farruh Sattarov, Head of the Environmental Policy Department at the Ministry of Ecology, Environmental Protection and Climate Change of the Republic of Uzbekistan, about the country’s environmental challenges and the ministry’s efforts to raise public awareness. TCA: Can you briefly describe the main projects currently being implemented by the Ministry of Ecology? Sattarov: To improve the environmental situation, we are working on several major projects. One key initiative is a $115 million investment project with the U.S. company, Sayar LLC, to generate alternative thermal energy from medical waste. This project will process 96,000 tons of medical waste annually, producing 320 GWh of thermal energy. Another significant effort focuses on improving air quality in Tashkent. In collaboration with South Korea’s Sejin G&E Co., Ltd, we are investing $55 million to generate 16 MW of electricity per year from landfill gas at the Akhangaran and Maydontol municipal waste sites. Additionally, we are partnering with the Asian Development Bank on a $60 million waste management project. This includes supplying special equipment, mobile laboratories, and waste containers to sanitation enterprises in Karakalpakstan and other regions. [caption id="attachment_28298" align="aligncenter" width="1280"] Farruh Sattarov; image: Ministry of Ecology of Uzbekistan[/caption] TCA: What are the priority areas for improving Uzbekistan’s environmental policy? Sattarov: Our environmental strategy is guided by the Concept of Environmental Protection of the Republic of Uzbekistan until 2030, which was approved in 2019. Its main goals include improving air quality, promoting sustainable economic growth through eco-friendly technologies, and ensuring efficient natural resource management. In 2025, our focus will be on the “Year of Environmental Protection and Green Economy.” As part of the “Uzbekistan - 2030” strategy, we are developing 30 environmental protection laws, which are currently open for public discussion. TCA: What measures are being taken to combat air pollution? Sattarov: In 2024, we took several key steps. We installed or upgraded dust and gas cleaning equipment at 188 enterprises and required 99.5% efficiency filtration systems at 24 new factories, preventing 8,500 tons of harmful emissions. In terms of targeting vehicle emissions, during the “Clean Air” campaign, we inspected 407,000 vehicles, preventing 256.9 tons of pollutants from entering the atmosphere. As part of the “Green Space” project, we planted 11.8 million trees around high-emission industrial sites. We also staged “Carless Day” events in Tashkent, Nukus, and other cities which helped reduce emissions by 5,800 tons, and eased traffic congestion. In 2025, we plan to modernize pollution controls at 122 major enterprises, inspect 500,000 vehicles as part of a new “Clean Air” campaign, and plant ten million more trees in and around industrial areas. TCA: What international initiatives does Uzbekistan support on climate change? Sattarov: Uzbekistan is actively involved in both global and regional climate initiatives. In regards to the Paris Agreement, we are developing our third Nationally Determined Contribution (NDC 3.0)...

Irrigation Regional Cooperation Water Management transboundary water water saving

Kazakhstan Secures 11 Billion Cubic Meters of Irrigation Water from Central Asian Neighbors

Kazakhstan will receive 11 billion cubic meters of irrigation water by April 2025 under an agreement reached in Dushanbe at a meeting of the Interstate Water Management Coordination Commission of Central Asia. The meeting brought together water management officials from Kazakhstan, Uzbekistan, Tajikistan, and Turkmenistan. Discussions focused on managing water resources in the Syr Darya and Amu Darya River basins. The allocated volume will flow into the Shardara Reservoir in Kazakhstan’s Turkestan region via the Syr Darya River. Of this total, 1.6 billion cubic meters will be directed to the Aral Sea to support its ecosystem. Kazakhstan’s Minister of Water Resources and Irrigation, Nurzhan Nurzhigitov, stated that the agreement will help the country secure sufficient irrigation water for the upcoming agricultural season while sustaining ecosystems in southern Kazakhstan. Nurzhigitov highlighted the stark contrast between the south and other parts of the country: “There are no large-scale floods in the south as there are in the west and north. In the summer, the demand for irrigation water is extremely high. That’s why we take a different approach to water management in the south, where water diplomacy is a priority. Through negotiations, we ensured an uninterrupted water supply to the region last year. We continue to resolve water distribution and transboundary water protection issues in cooperation with our Central Asian colleagues.” Kazakhstan’s agriculture, particularly in its arid southern regions, depends heavily on irrigation water from upstream Central Asian neighbors. As a result, regional water management remains a crucial factor in both economic and political relations among the countries of Central Asia.

Russia Construction Regional Cooperation public transport railroads

Tajikistan and Russia Discuss Resuming Rail and Bus Routes

Tajikistan and Russia are in discussions to resume passenger train service between Dushanbe and Moscow, as well as bus routes between cities in both countries. These services were suspended due to the COVID-19 pandemic. Tajikistan’s Minister of Transport, Azim Ibrohim, shared this information at a press conference in response to a question from TASS. He said the issue was discussed in Moscow during a meeting between the Tajik delegation and Russian Transport Minister Roman Starovoit at the CIS Coordination Transport Conference. “We addressed many transport-related issues and reached a full understanding. There were no unresolved matters, but some require time, including the Dushanbe-Moscow railway route,” Ibrohim stated. He added that discussions are ongoing, with a final decision expected soon. The minister also noted that rail service between Bishkek and Moscow resumed late last year. In addition to rail services, Tajikistan and Russia are working to expand bus connections. In mid-January, bus routes from Khujand to Novosibirsk, Tyumen, and Surgut were restored. Currently, passenger trains from Tajikistan — departing from Dushanbe, Kulyab, and Khujand — only operate to Volgograd. If negotiations succeed, the resumption of direct rail and bus links will further facilitate travel and trade between the two countries.