Trade Routes - The Times Of Central Asia

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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.

International trade China Export/Import Economic Integration Trade Routes

Central Asia Seeks Increase in Trade with China

On September 12, the Central Asia-Jiangsu Trade Center, a multifunctional platform showcasing exports from Kazakhstan, Uzbekistan, Tajikistan, and Turkmenistan, opened in Nanjing, the main city of Jiangsu Province in eastern China. According to the Kazakh Ministry of Trade and Integration, the operation of the Center in Jiangsu Province, known for its developed infrastructure, will facilitate access to the huge Chinese market for all five Central Asian countries. Plans are now in place to launch a similar multifunctional center in Kazakhstan’s capital, Astana, to showcase Chinese and Kazakh goods. Official statistics show continued growth of trade turnover between Kazakhstan and China. During the first seven months of this year, bilateral trade increased by 2.8% compared to the same period in 2023, and amounted to $16.8 billion. Between January and July 2024, trade between Kazakhstan and Jiangsu Province grew by over $1 billion, from $723.3 million to $1.758 billion. As reported by Kazakh Minister of Trade Arman Shakkaliyev, Jiangsu Province currently imports products, mainly from the industrial and agricultural sectors, worth more than $266 billion annually.

US Export/Import Economy Azerbaijan Trade Routes

U.S. Seeks Alternative Routes for Central Asia’s Exports

According to reports, U.S. Assistant Secretary of State for European and Eurasian Affairs James O'Brien stated to the House Foreign Affairs Committee, that the United States wants to ensure that items exported from Central Asia go through routes that exclude Russia and China. One such route is through Azerbaijan. “This applies to the entire Central Asian region; all of these countries’ exports to world markets currently go through China and Russia. For a workaround, they need to cooperate with Azerbaijan,” commented O'Brien, regarding goals of his upcoming trip to Baku. “One route goes through Georgia to the Black Sea, but another, potentially larger, would go through Azerbaijan, Armenia, and Turkey." In order to orchestrate such, the diplomat explained, "we need a peace agreement between Azerbaijan and Armenia.” O’Brien added that the U.S. supports the conclusion of a peace agreement between Armenia and Azerbaijan.

Trade Routes Regional Cooperation Taliban Economy Export/Import Afghanistan Investments Security

Why Kazakhstan’s Deepening Ties With Afghanistan Are Significant

At the end of April a Kazakh delegation made an official visit to Kabul, where a meeting of the Kazakh-Afghan Business Forum and an exhibition of Kazakh products were held. This was the third bilateral event aimed at expanding trade and economic ties between Kazakhstan and Afghanistan. The visit to Kabul indicates Astana’s intention to enhance Kazakhstan’s relations with the new Afghan authorities, and not only through trade. This is evidenced by a number of details that differed from previous official contact. First, an unannounced trilateral government meeting took place between Afghanistan, Kazakhstan and Turkmenistan in Kabul. The result was the announcement that a new logistics route to Afghanistan through Turkmenistan and Kazakhstan would be developed. There is nothing earthshaking about this – Turkmenistan is set to become a transportation hub for international corridors passing through Kazakhstan, primarily the North-South and the Middle corridors, as well as the Lapis Lazuli Corridor (Turkey-Azerbaijan-Turkmenistan-Afghanistan). What is significant is that the sides are striving to create favorable conditions for logistics, especially more competitive transport tariffs so trains can pass through faster. This is particularly important given congestion in Uzbekistan, where bottlenecks occur. The announcement in Kabul also means a direct route to economically attractive western Afghanistan and further south. What else made the Kabul visit notable was the meeting between Kazakh deputy prime minister Serik Zhumangarin, who oversees trade, and Abdul Kabir, the Taliban’s deputy prime minister for political affairs. Given the reputation of the Taliban, it is not in the interests of Astana to simply stage a conversation for the cameras. Unfortunately, details about the Zhumangarin-Kabir meeting are few. According to the available information, the deputy prime ministers discussed security issues in Afghanistan, apparently in the context of how to grow the Afghan economy. Following the meeting, Kabir stated that Afghanistan does not want to be a threat to the region, and intends to improve relations with its neighbors through the progressive development of trade and economic relations. The Zhumangarin-Kabir meeting is said to have taken place on the initiative of the Afghan side. Considering Kabir’s closeness to the emir of the Taliban, it is likely that the initiative came from him. Other notable outcomes of the visit of the Kazakh delegation to Kabul included: discussion of joint projects for geological exploration, mining and processing of solid minerals in Afghanistan, as well as in the IT sector; discussion of the possibilities for supplying Kazakh-made cars and subsequent localization of service centers in Afghanistan; a rise in the quota for Afghan students at Kazakh universities from 30 to 60, as well as a 10-day trip to children’s camps in Kazakhstan for 30 Afghan children in the summer of 2024; and discussion of the possibility of establishing direct flights between the two countries. Aidar Borangaziev is a Kazakhstani diplomat. He has worked in the diplomatic service in Iran and Afghanistan. He is a founder of the Open World Center for Analysis and Forecasting Foundation (Astana). He is an expert in regional security.

Corruption Trade Routes

President Speaks about Fighting Corruption, New Trade Routes in Eurasia

On December 15th, President Sadyr Japarov addressed the second People’s Kurultai, a national assembly of representatives of the public, to discuss current issues of national importance and develop joint proposals to promote reforms. In his speech, the President laid particular emphasis on the fight against corruption. “Corruption is a social evil not only of our people, but of all countries of the world. Because of corruption, our country did not develop for almost 30 years, only a few people became rich, and the common people lived in poverty. Currently, anti-corruption measures are in full swing. Billions of dollars are being returned to state coffers,” Japarov said, adding that a war is also being waged against organized criminal groups. “No investor will invest money in a country with criminal elements. In addition, some officials continue to obstruct investors and engage in bribery and lobbying. All these phenomena harm the image of the country. In this regard, the merciless fight against corruption will continue and intensify,” the President promised. President Japarov also touched upon the topic of new trade routes for Kyrgyzstan. “Kyrgyzstan is located on a unique trade route — the Great Silk Road between Europe and Asia. Occupying a convenient geographical location on trade routes, our country can become a bridge between East and West. For this purpose, a new multimodal transport route, the ‘Southern Corridor’ is being developed. In addition, work is underway to open a southern air corridor, which will strengthen air traffic between Kyrgyzstan and China, and connect the airports of Osh and Kashgar. “At the same time, construction of the China–Kyrgyzstan–Uzbekistan railway will begin in the near future. The pilot project for transporting cargo containers in transit by rail from China to Afghanistan via Kyrgyzstan and Uzbekistan will continue. The issue of launching a pilot container train linking Iran–Turkmenistan–Uzbekistan-Kyrgyzstan is also being considered. I am confident that these initiatives and ongoing projects will allow Kyrgyzstan to reach a new level of transport and logistics communication with the outside world,” President Japarov concluded.