Tashkent, Uzbekistan (UzDaily.com) -- On 14 July 2022, at the invitation of the President of the Republic of Uzbekistan Shavkat Mirziyoyev, President of the Republic of Turkmenistan Serdar Berdimuhamedov arrived in Uzbekistan on a state visit.

The leaders of the two countries discussed issues of further expansion of mutually beneficial Uzbek-Turkmen cooperation based on centuries-old ties of friendship and good neighborliness between our fraternal peoples.

Particular attention at the talks was paid to trade and economic cooperation between Uzbekistan and Turkmenistan.

The parties noted the successfully implemented agreements reached during the negotiations at the highest level, the increasing volumes of mutual trade, expanding investment cooperation and cooperative ties in the industrial sector.

Over the past 5 years, the growth of trade turnover between the countries has increased 5 times and at the end of last year exceeded US$902 million. At the same time, the export of goods and services from Uzbekistan to Turkmenistan increased by 52.2%, and the import of Turkmen goods and services increased by 72. 3%.

Today we continue to observe the growth of trade between Uzbekistan and Turkmenistan.

Thus, in January-June of this year, compared to the same period last year, the growth was 9.7%, reaching US$418.2 million, while the export of Uzbek goods and services to Turkmenistan increased by 27.7%, and the import of Turkmen products - by 5.5%.

Taking into account the current pace of mutually beneficial cooperation, as well as the existing potential of the countries, it can be predicted that in the near future the indicators of mutual trade can reach US$1 billion.

Investment cooperation between Uzbekistan and Turkmenistan is developing dynamically. In January of this year, a Memorandum was signed on the establishment of a joint venture for the assembly of household appliances in Turkmenistan.

The parties are considering projects of SKD assembly of passenger cars; the production of building materials based on the minerals of Turkmenistan, the organization of joint production of clothing, pharmaceutical and leather products, the creation of joint agricultural clusters.

Currently, 173 enterprises with the participation of Turkmen capital operate in Uzbekistan (69 joint ventures and 104 individual entrepreneurs, in 2021 - 159).

In order to develop cross-border trade cooperation, an Agreement on the establishment of the Uzbek-Turkmen border trade zone was signed in October last year.

During the Forum of Regions, held on 13 July 2022 in Bukhara, the parties agreed to speed up the launch of the Lebap-Bukhara and Dashoguz-Khorezm border trade zones.

In addition, as a result of the Forum, investment and trade agreements were signed for a total of US$450 million. The event was attended by over 200 representatives of business circles.

In general, there are currently no fundamental problematic issues between Uzbekistan and Turkmenistan in bilateral relations.

At the same time, our countries have a large untapped potential in the development of closer cooperation between the two economies, incl. in the implementation of large infrastructure projects, the processing of agricultural products, the creation of joint clusters for the production of finished products with high added value and their export to third countries.

Tashkent and Ashgabat have enough points of contact to claim the role of drivers of regional cooperation in the future while maintaining and further developing active political and economic interaction. Strengthening cooperation between Uzbekistan and Turkmenistan, in fact, can play an important role for the sustainable development of the Central Asian region.

In this regard, in the further building of the strategic partnership between Uzbekistan and Turkmenistan, attention should be focused on developing proposals for using all the unrealized potential.

It is necessary to strengthen interaction within the framework of business forums, industry exhibitions, as well as the promotion of technological goods and services, this will not only increase mutual trade, but will also open up new opportunities for the supply of joint products to third countries.

It is also necessary to actively involve the potential of the two countries in the implementation of major infrastructure projects, the creation of new joint production facilities with the attraction of direct investment in the development of the industrial complex of the two countries.

The search and development of new trade and logistics routes both between states and on an interregional scale is a requirement of the time.

Our countries have all the necessary potential to organize joint hubs of agricultural products, which will not only simplify the procedures for exporting Uzbek and Turkmen products to third countries, but also create additional conditions for ensuring the food security of our countries.

Malkov Sergey Sergeevich

Leading Researcher of the International Institute of Central Asia