Shavkat Mirziyoyev, the President of Uzbekistan, is set to embark on a significant visit to Kazakhstan. According to Mirziyoyev’s press office, the visit will include negotiations with President Kassym-Jomart Tokayev and the first meeting of the Supreme Interstate Council. These discussions will focus on expanding cooperation in various sectors such as trade, industry, transportation and logistics, energy, agriculture, and water management. A comprehensive package of documents aimed at strengthening bilateral relations is expected to be adopted.
Shavkat Mirziyoyev
The partnership between Kazakhstan and Uzbekistan has intensified in recent years, marked by frequent high-level visits. These interactions have played a crucial role in enhancing bilateral ties. For instance, Mirziyoyev attended the Shanghai Cooperation Organization summit and was on a state visit to Kazakhstan in December 2021. During this visit, both leaders announced the elevation of their relationship from a strategic partnership to an alliance. A year later, Tokayev visited Tashkent, where fifteen documents were signed to further solidify their cooperation.
Trade Growth and Economic Goals
Kazakhstan and Uzbekistan account for a significant portion of Central Asia’s trade. Data from the Kazakh government shows that last year’s trade turnover between the two countries reached $4.4 billion, with a slight increase to $4.9 billion in 2022. The first five months of 2024 alone saw trade volumes exceed $1.5 billion. Major exports from Kazakhstan to Uzbekistan include wheat, metal products, automobiles, flour, petroleum products, and copper ores, while Uzbekistan exports cars, fruits and vegetables, ethylene polymers, bricks, tiles, and nitrogen fertilizers.
The two countries aim to increase their bilateral trade turnover to $10 billion in the coming years. This ambitious goal reflects the strengthening economic ties between the nations. Industrial cooperation is also on the rise, with 69 projects worth $3.1 billion planned, expected to create over 14,700 jobs. Currently, 12 joint projects worth $217 million have been implemented, generating nearly 4,500 jobs. Significant projects include an electrometallurgical plant in Taraz, which will have a capacity of 500,000 tons of steel products.
Enhancing Transportation and Logistics
At an informal meeting in Khiva, Tokayev and Mirziyoyev expressed support for initiatives aimed at strengthening regional cooperation, such as establishing a joint venture between their railway administrations. This partnership is designed to facilitate freight transportation along the China-Kazakhstan-Uzbekistan route, enhancing bilateral trade and increasing the volume of transported goods. The agreement also includes the mutual provision of freight terminals at the Kazakhstan-China border and within Uzbekistan, significantly boosting cargo shipment capacity.
Central Asia International Center for Industrial Cooperation
Another notable collaborative initiative is the Central Asia International Center for Industrial Cooperation, aimed at bolstering economic ties and fostering regional development. Spanning 100 hectares in the Turkistan Region of Kazakhstan and Syrdarya Region of Uzbekistan, the center will house various production sites, warehouses, and transport infrastructure. This will accelerate cargo delivery and reduce logistics costs. In November 2023, a key agreement was signed to regulate the center’s activities, and a roadmap for its implementation was established in February.
Addressing Water and Energy Challenges
Water and energy issues are critical in the cooperation between Kazakhstan and Uzbekistan, given the interdependent nature of these resources in Central Asia. Both countries rely on the Syr Darya and Amu Darya rivers for water, which originate in upstream countries and flow through Uzbekistan before reaching Kazakhstan. Increasing water consumption due to population growth and industrialization, coupled with climate change, has strained these vital resources. A cooperative approach is essential to mitigate severe consequences.
Akramjon Nematov, the first deputy director of the Institute for Strategic and Regional Studies under the President of Uzbekistan, highlighted the acute issue of water access exacerbated by climate change. He pointed out that the growing population and economy increase energy demand, yet electricity trade in the region satisfies only 2.5% of the demand due to inadequate infrastructure and coordination.
Regional Stability and Prosperity
Experts emphasize that increased cooperation between Kazakhstan and Uzbekistan significantly contributes to Central Asia’s stability and prosperity. As the largest economies in the region, both countries play pivotal roles in shaping its economic landscape. Over the past five years, Kazakhstan’s GDP increased by $80 billion, while Uzbekistan’s GDP grew by $38 billion, indicating significant economic transformation and growth.
Shavkat Mirziyoyev’s visit underscores the commitment to deepening cooperation and achieving shared goals, ultimately benefiting the broader Central Asian region.