TASHKENT: The state visit of Uzbekistan’s President, Shavkat Mirziyoyev, to Azerbaijan has underscored the growing brotherly ties between the two nations, with a noticeable emphasis on economic collaboration.
This visit, complemented by a joint Azeri-Uzbek business forum held on August 21, has set new trajectories for economic relations, particularly within sectors like petrochemicals, gas, mining, and transportation. The visit has not only solidified existing bonds but also led to the signing of pivotal agreements aimed at fostering deeper cooperation.
The evolving economic landscape stems from the market transformations and open regional integration strategies pursued by both leaders. President Mirziyoyev’s pro-active policy towards economic reforms and President Aliyev’s efforts to expand economic ties with Central Asian states have laid the groundwork for fruitful collaboration between the two countries. Their mutual engagement extends to the Organization of Turkic States (OTG), regional transport-transit projects, and increased bilateral trade.
The Azeri-Uzbek integration efforts are particularly notable along the Trans-Caspian International Transport Route (TITR) and the “Middle Corridor.” This alignment of viewpoints on the expansion of transit and cargo volumes signifies a shared commitment to regional connectivity.
Growing Trade Cooperation Between Uzbekistan and Azerbaijan
Trade between Azerbaijan and Uzbekistan surged from $31.2 million in 2017 to $182 million last year. During the first half of 2023, mutual trade reached $84.6 million, marking a 1.7% increase. Both nations aspire to elevate bilateral trade to $1 billion over the next five years. The intensified trade is poised to encompass pharmaceuticals, petrochemical products, plastics, mining products, and agricultural goods.
The economic momentum is bolstered by a robust legal framework comprising over 130 inter-state, intergovernmental, and inter-agency agreements, including the recent “Declaration on Deepening Strategic Partnership and Enhancing Comprehensive Cooperation.”
Joint ventures between Azerbaijani and Uzbek entities have been pivotal in fostering cooperation. Notably, the joint assembly of Chevrolet cars has demonstrated substantial success over the past two years. The range of models and localization of production under this project are set to expand, reflecting a commitment to growth.
Medium-term joint projects totaling $800 million are also on the horizon, with an intergovernmental agreement to establish a joint investment fund capitalizing at $500 million for industrial and agricultural projects. The two leaders underscored the practical significance of these negotiations and the joint investment fund in materializing projects that benefit both nations.
The collaborative efforts extend to various sectors. During the recent Azeri-Uzbek business forum, the State Oil Company of Azerbaijan (SOCAR) and “Uzbekneftegas” signed agreements on oil & gas and petrochemical cooperation. Trade and logistics in oil, petrochemicals, and gas chemistry were also explored, with agreements focusing on digitalization and personnel training. Energy cooperation will further deepen with the signing of a road map for energy collaboration between Azerbaijan and Uzbekistan for 2023-2025.
Notably, the business forum witnessed the signing of documents on metallurgy, accreditation, and pharmaceuticals, reflecting the diverse and expansive nature of the collaborative efforts.
The visit signifies a significant milestone in the robust partnership between Azerbaijan and Uzbekistan. President Mirziyoyev echoed the sentiment, affirming that the alignment of interests would bring prosperity to both economies. The establishment of a “Supreme Inter-state Council” further attests to the elevated nature of their relations and the broadening agenda.
