In recent years, Uzbekistan and Turkmenistan have been shaping a new model of economic interaction in which the driving force is no longer political declarations but the tangible expansion of trade, industrial cooperation, and investment ties. The two countries are gradually transitioning from episodic initiatives to a systemic partnership grounded in predictable regulation, regular intergovernmental dialogue, and the steady growth of joint economic projects. While high-level contacts set the overall strategic direction, the substance of bilateral relations today is increasingly defined by concrete economic decisions and infrastructure-driven development.
A symbolic milestone in this institutional transformation was the meeting of the Joint Uzbek–Turkmen Intergovernmental Commission on Trade-Economic, Scientific-Technical and Cultural Cooperation held in July 2025. Chaired by the Deputy Prime Ministers of both states, the Commission reaffirmed the commitment of Tashkent and Ashgabat to expanding practical collaboration and aligning the mechanisms necessary to deepen cooperation across key sectors of their economies.
A solid legal and regulatory framework now serves as a cornerstone for sustainable bilateral engagement. Intergovernmental agreements — including the “Long-Term Trade and Economic Cooperation Framework,” the “Agreement on the Promotion and Reciprocal Protection of Investments,” the “Convention on the Avoidance of Double Taxation,” and the “Agreement on Mutual Supply of Goods” — provide a transparent, predictable, and secure environment for business. This framework underpins the growing volume of trade, rising investment activity, and emerging joint industrial initiatives that define the current phase of cooperation.
The rapid growth of bilateral trade vividly illustrates the effectiveness of this foundation. Trade turnover increased from USD 209 million in 2016 to USD 1.148 billion in 2024 — more than a five-fold rise. Uzbekistan’s exports total USD 128 million, while imports exceed USD 1 billion, driven primarily by fuels, lubricants, chemical products, and industrial goods. Moreover, exports expanded by 23.7% in January–October 2025, reflecting a rising demand for Uzbek products in Turkmenistan and a diversification of competitive goods. The structure of trade is becoming more sophisticated, with notable growth in services, engineering products, and finished industrial goods.
A genuine breakthrough in economic cooperation was the establishment of the Shavat–Dashoguz cross-border trade zone. The signing of the treaty on its operation and its official launch with the participation of both Heads of State gave a strong new impulse to bilateral relations. The zone is evolving into a platform where trade, logistics, and manufacturing can operate in an integrated space. It reduces transaction costs, accelerates supply chains, and enables businesses to access new markets, turning the border region into a hub of economic activity. Complementary to this, the opening of trade houses in Tashkent and Ashgabat is enhancing tools for market promotion and direct business engagement.
Investment cooperation is advancing steadily. Today, 200 enterprises with Turkmen capital operate in Uzbekistan — ranging from manufacturers of construction materials and textiles to furniture production and service companies. Ongoing projects include agro-industrial initiatives, petroleum product processing, and packaging materials production. Together, these efforts are laying the groundwork for deeper industrial cooperation aimed not merely at exchanging goods but at creating value-added production chains.
Transport connectivity plays an equally important role in strengthening economic ties. Existing intergovernmental agreements in the fields of rail, road, and river transport, supported by new memoranda, are increasing the efficiency of regional corridors. In 2024, total freight volumes reached 1.11 million tons, with transit flows rising by nearly 40%. The repair of Turkmen railcars at the Andijan Mechanical Plant and the export of tank wagons to Turkmenistan illustrate the growing industrial and transport cooperation forming an independent pillar of bilateral relations.
Conclusion and Outlook
Economic engagement between Tashkent and Ashgabat is entering a mature phase. A solid legal framework, dynamic trade growth, industrial integration, investment projects, and the launch of the cross-border trade zone together create a strong foundation for large-scale cooperation in the years ahead.
Promising areas for future development include deeper industrial cooperation in the chemical, textile, and food sectors; the transformation of the Shavat–Dashoguz zone into an industrial-logistics cluster; the expansion of agro-industrial and water-efficiency initiatives; the development of joint transport infrastructure; the creation of new investment mechanisms; and broader participation of the private sector in regional projects.
Today, the economics of cooperation between Uzbekistan and Turkmenistan is shaping a resilient partnership model that strengthens the economic security of both states and enhances their role in regional trade and transit chains.