Kazakhstan and Uzbekistan have announced a goal of more than doubling trade volume in "the coming years." To hit that very ambitious target, top officials from both countries intend to remove trade barriers.
The two countries accounted for 57 percent of all trade in Central Asia in 2023, with bilateral turnover amounting to $4.5 billion during the year. The pace of trade has dipped so far this year, with total volume totaling $1.2 billion during the first four months of 2024. Nevertheless, during regular bilateral consultations in Astana July 11-12, Kazakh Prime Minister Olzhas Bektenov and his Uzbek counterpart, Abdulla Aripov, said the two countries aim to boost volume to $10 billion annually in the near future.
In a statement, Aripov advocated for a "transition to a full free-trade regime," with digitized border-crossing procedures to reduce transit times. Meanwhile, Bektenov said Kazakhstan would focus on developing two sectors, agro-food and industrial cooperation, to drive an expansion of trade.
The Kazakh-Uzbek commitment to breaking down trade barriers fits in with a US-facilitated plan, dubbed the B5+1, to promote commerce on the nascent East-West corridor. Under the first phase of the B5+1 framework, the onus is on Central Asian states to create a streamlined and unified regional trade regime, as well as enhance property rights protections. Doing so will make Central Asia a more attractive foreign investment destination, thereby encouraging an expansion of trade.
Beyond trade topics, the bilateral consultations featured a lengthy discussion on water usage. The foreign ministers explored joint steps to digitalize and automate distribution systems to make the existing water-management framework more efficient.
Meanwhile, Tashkent is set to host a gathering of Kyrgyz and Uzbek business leaders on July 17. In addition to exploring potential deals, the meeting will provide a forum for executives to discuss ways to simplify trade procedures.
More Top Reads From Oilprice.com:
Eurasianet is an independent news organization that covers news from and about the South Caucasus and Central Asia, providing on-the-ground reporting and critical perspectives on… More
Why No Major Oil Company Is Rushing To Drill Pakistan's Huge Oil Reserves
Peak Oil: A Looming Threat to Economic Stability
Oil Markets Are Ignoring Imminent Production Cuts By 3 OPEC+ Members
Oil Prices Drop 4.5% On Record-Bearish Sentiment from Money Managers
Russian Oil Refining Capacity Plummets 14.5%