Trade - The Times Of Central Asia

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Uzbekistan to Establish Free Trade Zones Near Kyrgyz Border

Uzbekistan is preparing to establish new trade and industrial zones near its border with Kyrgyzstan, President Shavkat Mirziyoyev announced during a government meeting on April 16. The Andijan region currently exports approximately $200 million in goods to Kyrgyzstan each year. To boost trade further, Mirziyoyev proposed the development of industrial zones in Kurgan-Tepe and Khojaabad, modeled after similar projects on the Afghan border. He directed officials to engage with local businesses and select one of the two sites to begin detailed planning. Addressing Border Bottlenecks Concerns were raised during the meeting over logistical challenges at the “Dostlik” checkpoint in Khojaabad. Residents and freight operators have expressed frustration with persistent delays. Railway Project to Transform Regional Trade Mirziyoyev also highlighted the strategic importance of the planned Uzbekistan-Kyrgyzstan-China railway. Once completed, the railway is expected to reduce shipping times by up to a week and shorten the overall route by 1,000 kilometers. Cargo volumes could increase tenfold, he noted. The agreement to build the railway was signed on June 6, 2024, in Beijing. The 523-kilometer route will connect Kashgar in China to Andijan in Uzbekistan, passing through Kyrgyz cities including Torugart and Jalal-Abad. The project includes the construction of modern logistics hubs, warehouses, and terminals, and is intended to significantly strengthen transport links between Central and East Asia.

Trump's Tariffs Trade

Unpacking the Effects of Trump’s Tariffs on Central Asia

Trade analysts across Central Asia generally agree that the immediate impact of the United States' tariff policy on the export dynamics of their nations will likely be minimal, as observed in past experiences, except for Kazakhstan. However, there is a palpable concern regarding potential unforeseen consequences arising from a broader global trade conflict. Notably, the timing of the Trump administration's announcement regarding global tariffs on imports coincides with a period when Central Asian countries are actively working to enhance their regional trade relationships. This new tariff policy raises significant doubts about the authenticity of recent U.S. efforts to promote increased trade and investment in the region. The mixed signals coming from Washington may lead Central Asian leaders to re-evaluate their current trade partnerships, especially as they consider the benefits of strengthening ties with China and Russia against the attractiveness of expanding commerce with the United States. Similarly, the European Union may find an opportunity to improve its position, while India could leverage the Chabahar route (a multi-modal transportation route connecting India, Iran, Afghanistan, and potentially Central Asia and Europe). It is worth noting that the market is primarily situated in Asia, and this alternative could have adverse long-term effects on the United States. Kazakhstan, acknowledged as the United States’ largest trading partner in Central Asia, is poised to face significant repercussions from introducing new tariffs set at 27%. In 2024, trade relations between the U.S. and Kazakhstan reached an impressive total of $3.4 billion, with $1.1 billion in U.S. exports to Kazakhstan and $2.3 billion in imports from Kazakhstan to the U.S. However, a statement from the Kazakh Trade Ministry indicates that exports to the U.S. primarily consist of crude oil, uranium, silver, and other raw materials, all exempt from these tariffs. In 2024, Kazakhstan exported only $95.2 million worth of goods, which will now incur surcharges – a relatively modest figure compared to the country’s overall foreign trade turnover of $141.4 billion. Trade analysts suggest that Kazakhstan has little cause for concern, viewing this situation more as a psychological impact than a serious economic threat. Resource-driven Central Asian economies, such as Kazakhstan, may even find enhanced opportunities in the expanding Asian market. Trade dynamics in Central Asia reveal a complex landscape, especially concerning the United States. In 2024, Uzbekistan managed to export a modest $42.4 million worth of goods to the US, a small fraction considering its total foreign trade turnover, which reached an impressive $66 billion for that year. This stark contrast highlights the limited engagement of Uzbekistan in the American market. With its total trade turnover of $16 billion in 2024, Kyrgyzstan similarly struggled with exports to the US, which amounted to merely $16.7 million. This reflects a broader trend where Central Asian economies exhibit low volume exports to the US, suggesting significant barriers or challenges in establishing a foothold in this lucrative market. Tajikistan's economic performance presented an even more sobering picture. Recording a total trade turnover of $8.9 billion, the country achieved only $4.6 million...

Agreement Economic Cooperation Trade Transport Culture

Uzbekistan and Pakistan Agree to Increase Trade Volume by $2 Billion

Uzbekistan and Pakistan have agreed to expand trade, transport, and cultural cooperation, following talks between Uzbek President Shavkat Mirziyoyev and Pakistani Prime Minister Shehbaz Sharif in Tashkent on February 26. During the meeting, both leaders expressed satisfaction with the growing bilateral relationship. In 2024, trade volume between the two countries exceeded $400 million, and the number of joint ventures reached 130. Additionally, direct flights between Tashkent and Lahore have been resumed. The two sides discussed plans to boost trade to $2 billion and simplify customs procedures under a recently adopted roadmap. Key areas of cooperation include pharmaceuticals, agriculture, mining, and textiles. Transport connectivity was a major focus of the discussions. Freight traffic through the Uzbekistan-Afghanistan-Pakistan corridor has increased fivefold in recent years, and the two countries agreed to establish a joint transport and logistics company. They also pledged to advance the Trans-Afghanistan railway project, which aims to enhance regional trade routes. The two governments also committed to expanding cultural and educational exchanges. Agreements were reached on mutual cultural weeks, tourism development, and cooperation in science, technology, youth policy, and security. To strengthen long-term cooperation, Uzbekistan and Pakistan will establish a High Council for Strategic Partnership, with its first meeting scheduled for next year.

Economic Cooperation Water Trade Tourism Transport Education

Kazakh and Kyrgyz Prime Ministers Discuss Trade, Transport, and Water Cooperation

On February 24, Kazakhstan’s Prime Minister Olzhas Bektenov held talks in Astana with Adylbek Kasymaliyev, Chairman of the Cabinet of Ministers of Kyrgyzstan. The visit marked Kasymaliyev’s first official foreign trip since his appointment as Kyrgyzstan’s prime minister in December last year. Expanding Trade and Economic Cooperation The discussions covered trade, transit, water and energy cooperation, investment, and cultural ties, according to the Kazakh government’s press service. Bektenov noted that bilateral trade reached $1.7 billion last year, underscoring Kazakhstan’s role as one of Kyrgyzstan’s key trading partners. Kasymaliyev reaffirmed both governments' commitment to raising trade volume to $3 billion by 2030, a goal set by the presidents of both countries. He also revealed that Kazakhstani companies invested nearly $49 million in Kyrgyzstan’s economy in the first nine months of 2024. New Industrial Trade and Logistics Complex Kasymaliyev emphasized the importance of the Industrial Trade and Logistics Complex at the Kyrgyz-Kazakh border, which aims to streamline cargo transportation and enhance trade efficiency. The complex, located near the Karasu and Ak-Tilek road checkpoints, will be one of the largest cargo hubs in Central Asia, facilitating consolidation, processing, and distribution of goods. Land plots have already been allocated, and the Alatau industrial zone has been established in Kazakhstan’s Zhambyl region to support the project. Energy Cooperation and Food Security Kasymaliyev highlighted the potential duty-free supply of Kazakh oil to Kyrgyzstan, which would bolster Kyrgyzstan’s energy security and lower fuel costs for consumers. Additionally, both sides discussed building a trade and logistics warehouse in Kazakhstan’s Almaty region to store and distribute fruits and vegetables, ensuring stable fresh produce supplies and improving food security. Kasymaliyev stressed that these initiatives would create jobs, attract investment, and strengthen economic cooperation. Improving Transport and Border Infrastructure In the transit and transport sector, both governments focused on modernizing automobile checkpoints to boost cargo capacity at the Kazakh-Kyrgyz border. Water Cooperation Water resource management was another key topic, particularly irrigation water supplies from Kyrgyzstan to Kazakhstan for the upcoming growing season. Discussions centered on the Shu (Chu) and Talas rivers, which are crucial for agriculture in both countries. Tourism and Education The talks also explored expanding cross-border tourism, including: Developing eco-routes Improving active tourism infrastructure Attracting investment in the hotel industry Additionally, the two leaders discussed preparations for opening branches of Kazakh universities in Kyrgyzstan to enhance educational cooperation. The meeting underscored Kazakhstan and Kyrgyzstan’s commitment to deepening economic, energy, and infrastructure ties, while also addressing key water and environmental concerns. The successful implementation of these initiatives will boost regional integration and economic growth for both nations.

China International trade Trade e-Commerce 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.

Afghanistan Trade Bilateral Trade Economic Cooperation Investment Projects

Uzbekistan and Afghanistan Sign $4.5M Trade Deal as Economic Ties Grow

Business representatives from Uzbekistan and Afghanistan have signed a $4.5 million trade agreement, Tasnim News reported on February 3. Afghanistan’s Ministry of Industry and Trade announced the deal, stating that it was signed by private sector representatives from both countries. Afghanistan is Uzbekistan’s fifth-largest export market. Over the past five years, trade between the two countries has grown by nearly 1.5 times, reaching $866 million in 2023. Currently, 550 Afghan-invested enterprises operate in Uzbekistan, 443 of which are fully Afghan-owned. Joint projects are ongoing in food production, construction materials, agriculture, tourism, and textiles. Beyond trade agreements, both countries are discussing broader economic cooperation. In August 2024, an Uzbek delegation led by Prime Minister Abdulla Aripov visited Afghanistan. During the meetings, both sides emphasized their goal of increasing trade turnover to $1 billion in 2024, with a long-term target of $3 billion. Officials stressed the need to tap into new economic opportunities on a mutually beneficial basis. As previously reported by The Times of Central Asia, in October 2024, Afghanistan’s Ministry of Mines and Oil signed a 10-year contract with an Uzbek company for gas exploration and production in the Tuti Maidan gas field in Jawzjan province. The project is expected to bring in about $1 billion in investment to the region’s gas sector.