Opportunities and Risks of Kazakhstan’s and Uzbekistan’s Trade Agreements with the United States: “Central Asia , the Rising Star of the Global Economy”

Tashkent, Uzbekistan (UzDaily.com) — Kazakh and Uzbek Economies Demonstrated Their Strength to the World

The 80th session of the United Nations (UN) General Assembly, one of the most significant diplomatic events globally that brings together the leaders of member states, is being held in New York, United States, between 23–29 September 2025 under the theme “Stronger Together: 80 Years and Beyond for Peace, Development, and Human Rights.” The main thematic meeting took place on Tuesday, 23 September 2025.

Within this framework, the Presidents of Kazakhstan, Kyrgyzstan, Uzbekistan, Azerbaijan, Turkmenistan, and the Republic of Türkiye traveled to New York to attend the 80th UN General Assembly.

During the visit, numerous trade agreements were signed between the United States and Uzbekistan and Kazakhstan. These agreements, concluded on the margins of the UN General Assembly, reveal the significant level that the Turkic states, which gained independence after the dissolution of the Soviet Union, have recently achieved in terms of the global economy. Particularly, U.S. President Donald Trump’s public announcement of the trade agreements with Kazakhstan and Uzbekistan as a “major success” demonstrates the economic capacity that the Turkic states of Central Asia  have reached.

In recent years, the growing interest of China and the European Union in the economic potential of the region further highlights the momentum that the Central Asian  economy is expected to gain in the future. Indeed, the Turkic states have signed cooperation agreements and engaged in commercial initiatives with many countries, particularly the EU, the U.S., China, and the Gulf states. Additionally, these countries have organized numerous international commercial events at the level of heads of state within Central Asia     .

During the latest UN General Assembly visit to the United States, Uzbekistan signed a massive aircraft procurement agreement with Boeing. In this context, Trump personally announced that Uzbekistan would procure 22 Boeing 787 Dreamliner aircraft, with a total value of $8.5 billion, from Boeing. On his social media account, Trump described this agreement as a “fantastic deal,” noting that it would create more than 35,000 jobs in the U.S. He further characterized President Shavkat Mirziyoyev as “a man of his word” and emphasized continued cooperation across multiple areas.

The U.S. Department of Commerce announced that Uzbekistan’s aircraft procurement agreement constitutes the largest commercial contract ever signed with a Central Asian country. In addition to the Boeing agreement, long-term cooperation protocols were also signed in various fields, including transportation, mining, healthcare, finance, energy, artificial intelligence, and biotechnology. Within this scope, joint projects with leading U.S. corporations (such as Citigroup, Cargill, Nvidia, Mastercard, Visa, and General Motors) are planned.

These agreements also demonstrate the deepening of strategic economic relations between the two countries, in parallel with the fourfold increase in U.S.–Uzbekistan trade volume over the past eight years and the presence of more than 300 American companies operating in Uzbekistan.

Meanwhile, a $4.2 billion locomotive procurement agreement was signed between the United States and Kazakhstan. Under this agreement, the American company Wabtec announced that it would produce 300 freight locomotives for Kazakhstan at its facilities in Astana. U.S. Secretary of Commerce Howard Lutnick stated that Kazakhstan had signed “the largest locomotive procurement agreement in history” with the United States. Wabtec’s locomotive assembly facility has been operating in Astana since 2009 and, with an investment of $230 million, has produced over 600 locomotives for Kazakhstan to date. It was also noted that the facility’s domestic production rate has reached up to 45 percent. Furthermore, in July 2024, Wabtec opened a technology and engineering center in Kazakhstan to implement innovations and train personnel.

President Trump announced this agreement immediately after his meeting with Kazakh President Kassym-Jomart Tokayev, describing it as “the largest railway equipment procurement in history.” Trump’s decision to share both the Uzbekistan and Kazakhstan agreements via his social media account highlights the economic potential and purchasing power of both countries, while also signaling future opportunities for long-term international trade cooperation.

Risks and Opportunities

The United States’ direct economic penetration into the region via Zangezur could trigger competition and conflict among China, Russia, and other powers, while also potentially making the U.S. a dominant force controlling the regional economy.

The trade agreements signed with the U.S. must also entail technology transfer. The Turkic states must acquire mastery over the technology of the products they purchase and, in the future, produce them locally to eliminate dependence on foreign sources. Otherwise, such agreements may transform the region into a mere market, reducing it to an exploited economy rather than one generating prosperity. For this reason, Uzbekistan and Kazakhstan must begin producing the strategic investments they acquire—starting with spare parts—and gradually reduce their dependence. In the long term, they should develop into production hubs in these areas.

China has successfully implemented such a model. Thanks to cheap labor, it internalized technology investments from abroad and gradually became a technology-producing power. Today, China not only produces technology but also integrates its labor force into production, thereby largely reducing external dependence, except for raw materials.

Another threat is the uncontrolled exploitation of precious metals in the Turkic states by U.S., Chinese, and EU companies. This would lead to exploitation. The strategy here must be to keep the processing of valuable minerals under the control of the Turkic states. Moreover, by ensuring technology transfer through operating companies, they must build the capacity to process their own resources in the future. This would also provide strategic-level economic prosperity.

Conclusion

The Turkic states have recently made substantial investments in technology and have managed their international relations with a focus on strategic balance. Particularly, technology development centers established in Kazakhstan and Uzbekistan have conducted intensive work, transforming startups into major companies and integrating the ideas of young entrepreneurs into the economy. Various student exchange programs have also been implemented to cultivate and strengthen a new generation of skilled labor.

In this context, Kazakh President Kassym-Jomart Tokayev has closely followed global economic developments. One of the most concrete examples of this is his recent announcement that a Ministry of Artificial Intelligence and Digital Development will be established in Kazakhstan.

Uzbekistan, for its part, has undertaken significant investments in technology development zones and industrial parks. For instance, in order to transfer Türkiye’s experience in establishing and managing industrial zones, Uzbekistan has engaged in cooperation with OSTIM, one of Türkiye’s most successful organized industrial zones. Based on a decision of the Presidency of Uzbekistan dated 15 December 2023, 100 hectares of land in Tashkent were allocated for the establishment of the “Uzbek–Turkish Organized Industrial Zone” for OSTIM Global Project and Technology Inc.

In this regard, the procurement agreements signed by both Kazakhstan and Uzbekistan with the United States hold the potential, in the short term, to be transformed into investment and economic cycles within their countries. In particular, the strengthening of Uzbekistan Airways will contribute to Uzbekistan’s global outreach, especially in tourism and related sectors. Kazakhstan’s railway investments, meanwhile, will expand its logistics network and stimulate trade. What matters is that these investments be assessed from a multidimensional perspective, since trade is synonymous with logistics.

The Turkic states must implement their foreign policies with a keen awareness of international balance, and they possess the capacity to do so. One of the clearest examples of this is Azerbaijan’s policy during the Second Karabakh War. Through this astute balance policy, Azerbaijan managed its relations with Russia, the U.S., and the EU, alongside Türkiye’s strategic contributions, and secured global recognition of its victory, while simultaneously preventing a broader regional conflict.

During the UN General Assembly, the procurement agreements signed by Kazakhstan and Uzbekistan with the United States were publicly declared by President Trump as “a great success for the U.S.” on social media. This ensured broad international media coverage for Kazakhstan and Uzbekistan and created a significant promotional effect among the attending heads of state. In the long run, such publicity may also pave the way for potential investments in various sectors, especially tourism, in Kazakhstan and Uzbekistan.

In summary, Kazakhstan and Uzbekistan have declared their economic power and potential to the world through these major procurement agreements. These agreements showcase the economic capacity of Kazakhstan and Uzbekistan and open the door to new international investments and commercial partnerships.


Ahmet Sağlam 

The views expressed are those of the author and do not necessarily reflect the views of UzDaily.