I welcoming remarks

Uzbekistan’s Efforts to Further Cement Regional Interaction,
to Advance Trade and Economic Cooperation
B. Achilov, head of department at the Ministry of Foreign Trade
of the Republic of Uzbekistan
The countries of Central Asia are important foreign trade
partners of the Republic of Uzbekistan. The total turnover
exceeds $3 billion per year now.
Trade and economic cooperation of Uzbekistan with
neighboring nations is carried out on such fundamental bilateral
and multilateral treaties and agreements as “On Free Trade”, “On
Mutual Encouragement and Protection of Investments”, “On
Avoiding Double Taxation of Incomes and Property”, etc.
There are joint intergovernmental commissions on
bilateral trade and economic cooperation with all countries.
Individual roadmaps are being implemented with each country to
deepen and qualitatively enhance the trade and economic
cooperation. Roadmaps are aimed at enacting a set of specific
measures to address corresponding challenges.
Consistent efforts are underway to boost the volume of
mutual trade and bolster the industrial cooperation between the
enterprises of our countries. To date, about 600 joint ventures
with the participation of Uzbek capital operate in Central Asia
and Afghanistan.
The interregional interaction enhancement between and
among our countries is important and promising. Frequent are
visits by delegations from the provinces of Kazakhstan,
Turkmenistan, Kyrgyzstan to Uzbekistan, as well as trips by the
representatives of Uzbekistan’s local governments (hokimiyats)
to the regions of these countries. Cooperation between and among
respective territorial divisions of our nations will allow to

---

92
intensify collaboration and establish long-term partnership
relations among their business communities.
In order to further facilitate the access of goods to the
markets of neighboring nations and increase the volume of
mutual trade, active cooperation is in progress in removing
technical barriers to trade and standards optimization.
The priority direction of bilateral strategic partnership
relations with the Republic of Kazakhstan is undoubtedly the
further expansion of mutually beneficial trade and economic
cooperation, which is as a starting point for the promotion of
interaction in all other spheres.
Thus, documents in trade and economic cooperation worth
$839.5 million were signed during the highest-level visit to
Kazakhstan in March this year.
The following key bilateral documents define trade and
economic cooperation between the Republic of Uzbekistan and
the Republic of Kazakhstan:
- Strategy of Economic Cooperation for 2017-2019,
adopted on March 23, 2017;
- intergovernmental agreements on free trade and on
mutual encouragement and protection of investments, signed June
2, 1997;
- Intergovernmental Agreement on the Avoidance of
Double Taxation of Income and Property, inked June 12, 1996.
The Republic of Kazakhstan is also a party to the Protocol
on the Application of the Free Trade Area Treaty of October 18,
2011, between its Parties and the Republic of Uzbekistan
(adopted on May 31, 2013).
The Joint Intergovernmental Commission on Bilateral
Cooperation has been conducting its activity since 1997. A total
of 16 meetings of the Commission have since been held, the latest
one being on 23 February 2017 in Tashkent.
There is a full-fledged free trade regime in trade relations
between the countries. The turnover amounted to $1,810.9

---

93
million at the end of 2016, including exports at $945.0 million,
and imports at $865.9 million.
The main export items are natural gas (42.1%), fresh and
processed fruit and vegetable goods (32.1%), textiles (4.1%),
chemical products (3.9%), plastics (2.5%), construction materials
(1.2%), transportation services (5.6%).
Imports: wheat and flour (39.9%), ferrous and non-ferrous
metals (23.1%), zinc concentrate (5.7%), sunflower seeds (3.4%),
lignite (2.6%), asbestos (2.0%), plastics (1.4%), chemical
products (0.8%), services (2.0%).
In January-June 2017, the trade turnover amounted to
$953.0 million (+11.4%), including exports at $483.9 million
(+16.6%), and imports at $469.1 million (+6.5%).
Currently, there are 242 enterprises with participation of
Kazakhstan capital (206 joint enterprises and 36 enterprises with
100% of Kazakh capital) in the Republic of Uzbekistan, and
representations of 6 companies of Kazakhstan are accredited. The
main areas of their activities are trade operations, provision of
transport and logistics and other services, production of
construction materials and consumer goods.
In turn, 99 enterprises (joint ventures, trading houses and
branches) were established in Kazakhstan with the participation
of residents of the Republic of Uzbekistan to export to the
Kazakh market. In addition, in May this year, assembly
production of JSC GM Uzbekistan cars (Ravon Nexia R3) was
launched in the city of Kostanay.
The deal and the program of economic cooperation for
2013-2017, intergovernmental agreements “On the main aspects
of long-term trade and economic cooperation”, “On the
promotion and mutual protection of investments”, “On avoiding
double taxation of income and property”, “On mutual supplies of
goods”, among others define trade and economic interaction
between the Republic of Uzbekistan and Turkmenistan.

---

94
The Joint Uzbek-Turkmen Commission for Trade-
Economic, Scientific-Technical and Cultural Cooperation has
been active since 1996. A total of 13 meetings of the Commission
were held, the latest one of which took place on January 25, 2017
in Tashkent.
The trade turnover amounted to $212.9 million for the
year 2016, including exports at $83.4 million, and imports at
$129.5 million.
The main supply items are agricultural machinery
(22.1%), fresh and processed fruit and vegetable products
(16.3%), glass goods (7.6%), construction materials (7.1%),
potash fertilizers (5.7%), passenger cars (2.1%), finished textiles
(1.7%), chemical products (1.4%), transport services (24.5%).
Imports include oil and petroleum products (75.3%),
natural gas (6.4%), cottonseed oil (7.8%), propylene polymers
(4.6%), chemical products (2.7%), transportation services (1.4%).
In January-June 2017, the mutual trade amounted to
$100.0 million, including $32.9 million worth exports, $67.1
million worth imports.
There are 9 enterprises with the participation of the
Turkmen side in the Republic of Uzbekistan, including 8 joint
ventures and 1 enterprise with 100% Turkmen capital. Main
fields of activity are trade and services, textile industry,
production of facing materials and furniture.
2 enterprises were set up in the territory of Turkmenistan
with the participation of residents of the Republic of Uzbekistan
to export industrial products to the Turkmen market.
The legal basis for trade and economic cooperation
between the Republic of Uzbekistan and Kyrgyzstan are
agreements “On free trade”, “On mutual encouragement and
protection of investments”, “On avoidance of double taxation and
prevention of evasion from payment of taxes on profit and
income” signed 24 December 1996 and “On the principles of

---

95
collecting indirect taxes on the export and import of goods” inked
September 20, 1997.
The Kyrgyz side also signed a “Protocol on the
application of the Free Trade Area Agreement of 18 October
2011 between its Parties and the Republic of Uzbekistan”
(adopted on May 31, 2013, during a meeting of the Council of
Heads of Government of the CIS Member States in Minsk) and
ratified the document in January 2017.
The Joint Intergovernmental Commission for Bilateral
Cooperation was established in 1996. A total of 7 sessions of the
Commission were held, the latest one being December 28, 2009,
in Tashkent.
It is gratifying to note that after an eight-year hiatus, the
eighth session of the Joint Intergovernmental Commission for
Bilateral Cooperation is scheduled for August 16 in Cholpon-Ata
of the Kyrgyz Republic. Abdulla Aripov, Prime Minister of the
Republic of Uzbekistan, will lead the Uzbek side, Sooronbai
Zheenbekov, Prime Minister of the Kyrgyz Republic, will head
the Kyrgyz side.
The trade turnover amounted to $167.5 million in 2016,
including exports at $121.5 million, and $46.0 million worth
imports.
The main export items are textile products (39.0%), fresh
and processed fruits and vegetables (10.3%), natural gas (9.9%),
nitrogen fertilizers (8.0%), plastic goods (5.6%) %), footwear
(4.8%), ceramics (3.2%), non-ferrous metal products (2.4%),
electrical and mechanical equipment (2.5%), services (5.7%).
Imports include vehicles (38.1%), scrap from ferrous
metals (17.9%), energy carriers (15.2%), construction materials
(5.8%), glass products (5.2%), services (3.7%).
In January-June 2017, the volume of mutual trade
amounted to $111.9 million (+69.1%), including exports at $87.9
million (+60.1%), imports worth $24,0 million (+112.9%).

---

96
Currently, there are 54 enterprises in the Republic of
Uzbekistan with the participation of Kyrgyz capital, including 5
with 100% foreign capital. Representation of 1 Kyrgyz company
was accredited. The main areas of their activities is production of
building materials, confectionery and footwear, retail trade,
services in public catering, advertising activities, freight
forwarding services.
In turn, 49 enterprises with the participation of residents
of the Republic of Uzbekistan were established on the territory of
the Kyrgyz Republic, of which 18 are operating.
The ties between the two states have become noticeably
more active in recent times. Regular dialogue is conducted
between the leaders of our countries; exchange is in progress
between government delegations.
Intergovernmental Free Trade Agreement of January 10,
1996, defines the trade and economic cooperation between the
Republic of Uzbekistan and the Republic of Tajikistan.
Tajikistan also signed a Protocol on the application of the
Free Trade Area Treaty of October 18, 2011, between its Parties
and the Republic of Uzbekistan (adopted on 31 May 2013 during
a session of the Council of Heads of Government of the CIS
Member States in Minsk). However, the document has not yet
been ratified by the Tajik side.
The Joint Uzbek-Tajik Intergovernmental Commission for
Trade and Economic Cooperation has been conducting its activity
since 2002. The fourth meeting of the Commission was held
December 27-28, 2016, in Dushanbe.
The trade turnover amounted to $197.0 million (+17.8%)
in 2016, including exports worth $164.8 million (+2.8%), imports
totaling $32.2 million (an increase of 4.6 times). Import grew due
to an increase in the supply of zinc concentrate.
The main export items are transportation services
(72.9%), nitrogen fertilizers (18.4%). Imports: zinc ores and

---

97
concentrates (79.0%), construction materials (9.4%), insulated
wires (1.0%), services (9.1%).
In January-June 2017, the volume of mutual trade
amounted to $118.4 million (+22.2%), including exports – $91.6
million (+3.9%), imports – $26, 8 million (+205.6%).
There are 24 enterprises with the participation of Tajik
capital in Uzbekistan (1 enterprise with 100% Tajik capital). 8
enterprises were established in the territory of Tajikistan with the