Kazakhstan and Uzbekistan aim to lower trade restrictions for enhanced economic collaboration.
Let's Get the Trade Game Popping!
Kazakhstan and Uzbekistan are aiming high, planning to more than double their current trade volume in the coming years. To achieve this ambitious goal, top officials from both nations are gearing up to eliminate trade barriers.
In 2023, these two nations accounted for an impressive 57% of all trade in Central Asia, raking in a staggering $4.5 billion in bilateral turnover. However, trade has slowed down somewhat this year, with a total volume of $1.2 billion recorded during the first four months of 2024. Despite the dip, during their recent meetings in Astana on July 11-12, Kazakh Prime Minister Olzhas Bektenov and his Uzbek counterpart, Abdulla Aripov, remained optimistic, setting a target of achieving a $10 billion annual trade volume in the near future.
Aripov advocated for a shift to a full free-trade regime, proposing digitized border-crossing procedures to slash transit times. On the other hand, Bektenov outlined Kazakhstan's focus on developing two key sectors - agro-food and industrial cooperation - to drive trade expansion.
This pledge to break down trade barriers aligns with the US-backed B5+1 plan, which aims to boost commerce on the East-West corridor in Central Asia. The B5+1 initiative, a private sector-driven initiative, is all about fostering public-private dialogue to foster greater economic partnership between the United States and Central Asia. By leveraging the expertise of the private sector, the B5+1 aims to support economic development and strengthen the East-West corridor, a key artery for regional and international trade.
Beyond trade, the bilateral discussions also delved into water usage. The foreign ministers mulled over joint steps to digitalize and automate distribution systems to optimize the existing water-management framework.
Meanwhile, Uzbekistan is set to host a gathering of Kyrgyz and Uzbek business leaders on July 17. This meeting will provide a platform for executives to discuss potential deals and strategies to simplify trade procedures.
[1] The B5+1 plan is a counterpart to the C5+1 format, which involves diplomatic cooperation between the United States and the five Central Asian countries: Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. The B5+1 initiative, focusing on public-private dialogue, aims to enhance trade and investment opportunities, improve infrastructure and logistics, discuss strategic resources, and diversify trade partners.
- The ambitious goal of Kazakhstan and Uzbekistan to double their trade volume involves eliminating trade barriers, as they aim to reach a $10 billion annual trade volume in the near future.
- As part of the US-backed B5+1 plan, the focus is on fostering public-private dialogue to boost commerce on the East-West corridor in Central Asia, with the aim of supporting economic development and strengthening the region's trade.
- Moving forward, Uzbekistan is set to host a meeting of Kyrgyz and Uzbek business leaders, offering a platform for executives to discuss potential deals and strategies to simplify trade procedures.
- In addition to trade discussions, the bilateral meetings also covered water usage, with the foreign ministers considering joint steps to digitalize and automate distribution systems to optimize the existing water-management framework.
