Using the potential of complementarity and combining joint efforts in the formation of new points of growth of the economies of Uzbekistan and Kazakhstan
Tashkent, Uzbekistan (UzDaily.com) - The visit of the President of the Republic of Uzbekistan to Kazakhstan on 5-6 December opened a new milestone in the further deepening of multifaceted, mutually beneficial Uzbek-Kazakh cooperation.
The leader of Uzbekistan noted that today a historic decision has been made - bilateral cooperation has been raised to the level of allied relations, which fully meets and proceeds from the long-term interests of our fraternal peoples.
The Declaration on Allied Relations between the Republic of Uzbekistan and the Republic of Kazakhstan, adopted at the end of the negotiations, emphasized the importance of developing a mutually beneficial partnership by creating the necessary conditions for the development and strengthening of direct ties between regions and economic entities, the creation of new joint ventures in various sectors of the economy.
Among the priority areas, such areas as attracting investment and industrial cooperation are highlighted.
Increasing the level of industrial cooperation is one of the main directions of the industrial policy of the two countries. An important factor is the formation of cooperative chains between producers, which leads to an increase in the volume of mutual trade and the export of industrial goods.
In recent years, tremendous changes have been taking place in Uzbek-Kazakh relations. If in general in 2020 the trade turnover between the countries exceeded US$3 billion, then in January-October 2021 it reached US$3.2 billion, that is, increased by 36.5%.
Currently, 2,144 enterprises with Uzbek capital (5.8% of the total) are registered in Kazakhstan, of which 1,414 are operating. Uzbek business began to actively invest in the economy of Kazakhstan.
In the field of mechanical engineering, UZAuto Motors JSC and MAN Auto-Uzbekistan JSC have established joint ventures with SaryarkaAvtoProm LLP in Kostanay for the production of Chevrolet cars and MAN trucks. A joint venture Nurafshon for the production of agricultural machinery was established in Kostanay in November this year at AgromashHoldingKZ JSC. In the field of light industry, the Kazakh-Uzbek trade and industrial company Alliance has established a joint textile venture, and the Turkestan Textile garment factory was launched in Turkestan.
As President Shavkat Mirziyoyev noted, the basis of cooperation between Uzbekistan and Kazakhstan is the desire to use the enormous potential of complementarity by combining joint efforts and identifying new growth points.
The readiness of the governments of the two countries to actively cooperate to create favorable conditions for establishing direct cooperation of Uzbek and Kazakh entrepreneurs for the implementation of joint investment projects. As a result of the business events, new investment and trade agreements worth about US$6 billion were signed.
The further development of industrial cooperation and the formation of continuous value chains on its basis, taking into account the comparative advantages of the economies of Uzbekistan and Kazakhstan, opens up especially broad prospects for the business community. Currently, a number of enterprises are successfully operating in the mining and textile industries, automotive industry and construction, as part of the implementation of a separate "Road Map" to expand and deepen industrial cooperation between Uzbekistan and Kazakhstan.
Potential opportunities include the implementation of new joint projects in the field of mechanical engineering, construction industry and pharmaceutical industry. At the business forum, mutual intentions of the two countries were announced to further develop cooperative cooperation by developing new promising projects and involving entrepreneurs in their implementation.
To promote these goals, an International Center for Industrial Cooperation is being created on the border areas of the two countries. It will be equipped with the appropriate production infrastructure, and its residents will receive a number of benefits and preferences, which will make it possible to more effectively attract Uzbek and Kazakh entrepreneurs to the creation of joint industrial enterprises.
Thus, the use of the potential of cooperative cooperation will undoubtedly allow Uzbekistan and Kazakhstan to increase the efficiency of using the resource potential, ensure the production of competitive products with high added value, and bring the trade turnover between the two countries to US$10 billion in the next five years.
Doctor of Economics, Chief Researcher
Institute for Strategic and Interregional Studies
under the President of the Republic of Uzbekistan.