Tashkent, Uzbekistan (UzDaily.com) — On 4 June, a delegation from Uzbekistan participated in the second session of the Uzbekistan–Azerbaijan Expert Council titled "Uzbekistan and Azerbaijan: Promising Areas for Mutually Beneficial Cooperation", held in Baku.

The key agenda of the event focused on discussing the current state and future prospects of bilateral cooperation in areas such as agro-industrial integration, green energy, digitalization, transport, and education.

During the event, CERR Director Obid Khakimov delivered a presentation highlighting the positive outcomes of the new cooperation format implemented by CERR during its visit to Azerbaijan in September 2024.

Initiated by the President of the Republic of Uzbekistan, Shavkat Mirziyoyev, the CERR delegation visited Azerbaijan in September 2024 to study the country’s socio-economic reform experience.

This visit became a model of applied analytical work integrated into policymaking processes. Over 20 meetings were held with government bodies, special economic zones, research institutes, and private sector representatives.

The mission included a comparative analysis across 18 sectors of the economy, covering key indicators, government support mechanisms, investment potential, competitive advantages of products, and major reforms.

Based on this analysis, concrete proposals were developed in areas such as energy, industrial cooperation, digital agriculture systems, logistics, tourism, digital transformation, and institutional reform.

Notably, 33 of these proposals were formally approved by the Government of the Republic of Uzbekistan on December 11, 2024.

In addition, an intergovernmental working group “Azerbaijan–Kazakhstan–Uzbekistan” was established to develop joint projects in the field of green energy. Drawing on Azerbaijan’s experience in agricultural insurance, a draft law “On Agricultural Risk Insurance” was also developed.

According to CERR Director Obid Khakimov, several projects are currently in the process of implementation. One of the key initiatives is the establishment of a household appliance production facility within the Alat Special Economic Zone in Azerbaijan. This project aims to foster local manufacturing and strengthen industrial cooperation between the two countries.

Work is also underway to introduce the “Industrial Digital Readiness Index” program, inspired by Azerbaijan’s experience. As part of this initiative, a detailed action plan is being developed, which is expected to be implemented by 2026 and will serve as a critical tool to accelerate digital transformation in the industrial sector.

In addition, Azerbaijan is developing a large language model (LLM) for the Uzbek language using artificial intelligence technologies.

The successful implementation of the "Azerbaijani case" as part of the joint research has laid the foundation for the new five-year roadmap for bilateral cooperation between Uzbekistan and Azerbaijan.

Furthermore, based on the conducted analysis, the CERR Director emphasized the need to deepen industrial cooperation, particularly in the production of synthetic fabrics, chemical products, and electric vehicles. Promising areas also include the development of the jewelry industry and agricultural partnerships, especially in viticulture and pomegranate cultivation, as well as expanding to third-country markets with jointly produced agricultural goods.

The expert also highlighted the positive dynamics in trade and economic relations between Uzbekistan and Azerbaijan in recent years. Over the past eight years, bilateral trade turnover increased 7.8 times, reaching US$253 million in 2024. Uzbekistan’s exports rose to US$208 million, primarily consisting of machinery, food products, textiles, and metals. Imports from Azerbaijan amounted to US$45 million, dominated by agricultural products and aluminum.

Speaking about investment cooperation, Obid Khakimov highlighted the impressive growth in Azerbaijani investments in Uzbekistan. While in 2017 only US$142,000 was attracted from Azerbaijan, by 2024 this figure had reached US$79.5 million. This growth was facilitated by the establishment of the Azerbaijani–Uzbek Investment Company, with an authorized capital of US$500 million, and the increase in the number of joint ventures from 178 in 2019 to 278 as of April this year.

In the field of transport, proposals were made to introduce new preferential regulations for the delivery of strategic goods through the Middle Corridor, as well as to encourage Uzbek companies to participate in infrastructure and logistics projects in Azerbaijan

Addressing the potential for expanding cooperation in trade and tourism, the CERR Director emphasized several promising initiatives: the launch of supermarket chains featuring Uzbek products in Azerbaijan’s retail market, the integration of Uzbek producers and suppliers into the AzExport platform, and the promotion of tourism brands, including the development of joint tourism packages, particularly in gastronomic and winter sports sectors.

In conclusion, Obid Khakimov underlined the special role of education and science in fostering sustainable long-term cooperation. According to him, the launch of dual-degree programs, academic exchanges, and the creation of an interstate scientific and expert council will become crucial elements of bilateral strategic partnership.

Finally, it was noted that the applied analytical model developed by CERR, focused on sectoral studies of the economy, has laid the foundation for identifying priority areas of cooperation between Uzbekistan and Azerbaijan, and can be successfully scaled to other countries in the region.

The event was organized by the Institute for Strategic and Interregional Studies under the President of the Republic of Uzbekistan, in partnership with the Center for Analysis of International Relations (AIR Center) of the Republic of Azerbaijan. Participants included experts from the AIR Center, the State Agency for Renewable and Alternative Energy Sources, the STEM Center, the Ministry of Digital Development and Transport, and Baku State University.