New Trade Route Between Turkiye and Uzbekistan Targets $5 Billion

Bilateral Trade to Reach New Heights with Strategic Cooperation

The trade relationship between Turkiye and Uzbekistan is set to expand significantly, with ambitious plans to elevate the trade volume from over $3 billion last year to an initial target of $5 billion, eventually aiming for $10 billion. As of the end of 2023, Turkiye stands as Uzbekistan’s fourth-largest trade partner, reflecting the growing economic ties between the two nations.

Ankara is poised to host a High-Level Strategic Cooperation Council meeting, led by Turkish President Recep Tayyip Erdogan and Uzbek President Shavkat Mirziyoyev, aimed at further strengthening these bilateral relations.

Significant Growth in Trade and Investment

Recent initiatives have led to notable increases in trade between the two countries. From 2017 to 2023, the number of firms engaged in international trade surged by 144%. By the end of last year, Turkiye had 5,706 export firms and 707 import firms operating in Uzbekistan.

This surge is reflected in the trade figures. Turkish exports to Uzbekistan saw a dramatic rise, from $1.23 billion in 2019 to $1.84 billion in 2021, before reaching $1.87 billion in 2022. Meanwhile, imports from Uzbekistan have fluctuated, peaking at $1.8 billion in 2021, and stabilizing at around $1.2 billion last year.

Machinery Exports and Copper Imports Dominate Trade

Machinery and mechanical devices were Turkiye’s top exports to Uzbekistan, amounting to $540.1 million last year. Other significant exports included electrical machinery, plastics, and paints. On the import side, copper products led with $473.6 million, followed by cotton products at $340.3 million.

Turkiye also played a significant role in foreign investments in Uzbekistan, contributing 6.4% of all foreign investments last year, positioning itself as the fourth-largest investor after China, Russia, and Saudi Arabia.

Strategic Partnerships and Future Goals

Ozgur Onur Ozguven, President of the DEİK Turkiye -Uzbekistan Business Council, emphasized the strategic partnership’s positive impact. “Following President Mirziyoyev’s reforms, our political and economic relations have flourished, reflecting a substantial increase in trade volume,” he noted. He expressed optimism about overcoming challenges related to Uzbekistan’s customs agreements with China and Russia.

The upcoming High-Level Strategic Cooperation Council’s third meeting is anticipated to foster further trade growth. Ozguven shared the ambitious trade targets, highlighting a phased goal of reaching $5 billion initially, and $10 billion subsequently, despite potential hurdles from customs agreements.

Additionally, there are currently 1,900 Turkish firms active in Uzbekistan, with investments totaling approximately $1.7 billion. Turkish contractors are also heavily involved in Uzbek infrastructure, handling projects worth $7.2 billion, predominantly in the construction sector.

Source: Trthaber / Prepared by Irem Yildiz

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