Uzbekistan-Kazakhstan: New era of diplomatic and trade relations

Uzbekistan – Kazakhstan: New era of diplomatic and trade relations
Photo credit: Mukhtor Kholdorbekov/ Kazinform

The relations between Uzbekistan and Kazakhstan in diplomacy and trade have been strengthening significantly, opening up new economic and cultural collaboration prospects. On 22 December 2022, during the state visit of the President of Kazakhstan to Uzbekistan, important agreements on allied relations and demarcation of the state border were signed, which is a significant step in developing cooperation, Uza reports.

Fifteen documents were signed at the level of government structures, including agreements on establishing the Central Asia International Industrial Cooperation Center and cooperation in environmental protection and education. Trade contracts and investment agreements worth $8 billion were also signed, demonstrating strengthening economic ties.

Deputy Prime Minister Jamshid Khodjayev expressed his intention to create a joint foreign trade company and an international center for industrial cooperation. As part of this initiative, a trade mission of Kazakhstani commodity producers and service providers was organized in Tashkent, which led to the signing of export contracts worth over $44.1 million.

These developments reflect the profound interest of both countries in promoting peace and prosperity in Central Asia, especially against the backdrop of global economic and political challenges. Strengthening economic and cultural ties contributes to increasing investment, enhancing trade conditions, developing infrastructure, and improving the lives of citizens.

In addition to these events, the Minister of Investment, Industry and Trade of Uzbekistan Laziz Kudratov met with the Minister of Trade and Integration of Kazakhstan Arman Shakkaliyev. At the meeting, an agreement was reached on the speedy creation and launch of the International Industrial Cooperation Center “Central Asia”. Issues of implementation of investment agreements and trade contracts signed during the visit of the President of Kazakhstan to Uzbekistan were also discussed.

Over the 11 months of 2023, trade turnover between Kazakhstan and Uzbekistan reached a significant level of $4.1 billion. The goal is to increase this figure to 10 billion, as discussed during the talks between the Minister of Trade and Integration of Kazakhstan, Arman Shakkaliyev, and the Minister of Investment, Industry and Trade of Uzbekistan, Laziz Kudratov.

Increasing trade turnover became one of the key discussion issues, and both sides agreed on specific actions to achieve this goal. An essential role in this process will be played by the jointly created company UzKazTrade, which provides an online trading platform to promote goods in the markets of both countries.

In economic development, Kazakhstan is demonstrating significant growth in various sectors. In particular, over the 11 months of 2023, freight transportation by rail increased by 2.2 percent in the country and by road by 10.1 percent. The total volume of cargo transported by all modes of transport amounted to 895.4 million tons, which is 3.9 percent more than the previous year. These data indicate the development of transport infrastructure and the strengthening of regional trade relations.

It is also worth noting that according to International Monetary Fund (IMF) forecasts for 2023, Kazakhstan’s gross domestic product (GDP) should reach $259.3 billion, which is 15 percent more than in 2022. This indicator puts Kazakhstan in a leading position among the countries of Central Asia and the CIS in terms of GDP. By 2028, Kazakhstan’s GDP is predicted to increase to $354.7 billion.

This economic success and plans to deepen trade relations testify to both countries’ commitment to shared economic growth and prosperity that will contribute to the region’s overall well-being.

At the same time, strengthening diplomatic and trade ties between Uzbekistan and Kazakhstan highlights the importance of joint efforts to create a favorable environment for sustainable development and cooperation.

Particular attention is paid to the development of industry, trade, and infrastructure, which provides new opportunities for business and investment. In this context, initiatives such as creating the International Industrial Cooperation Center “Central Asia” and the UzKazTrade company play a key role in strengthening economic relations between the two countries.

Overall, the ongoing deepening of relations between Uzbekistan and Kazakhstan demonstrates an example of a successful bilateral partnership that brings positive changes in economic and sociocultural terms, contributes to the achievement of common goals, and strengthens mutual trust and cooperation between the two countries.

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