In recent years, Uzbekistan and Turkmenistan have been building a new format of economic interaction in which the key role belongs not to political declarations, but to the real development of trade, industrial cooperation, and investment ties. The countries are gradually moving from a model of episodic projects to systematic partnership based on a predictable regulatory framework, regular intergovernmental dialogue, and the expansion of joint economic initiatives. The highest level of contacts sets the strategic direction, but today the substantive deepening of relations is taking place primarily through concrete economic decisions and infrastructure projects.
The holding in July 2025 of the latest meeting of the Joint Uzbek-Turkmen Intergovernmental Commission on Trade-Economic, Scientific-Technical and Cultural Cooperation was another important symbol of the transition to a more mature and institutionally formalized cooperation. The Commission, co-chaired by the deputy prime ministers of the two countries, reaffirmed Tashkent’s and Ashgabat’s commitment to expanding practical interaction and coordinating mechanisms for further deepening cooperation in the sectors most important to both economies.
A solid contractual and legal foundation has become a key basis for sustainable growth in interaction. Intergovernmental agreements “On the Main Directions of Long-Term Trade and Economic Cooperation,” “On the Encouragement and Mutual Protection of Investments,” “On the Avoidance of Double Taxation of Income and Property,” “On Mutual Supplies of Goods,” and other documents have created a regulatory framework that ensures transparency of conditions, predictability of economic policy, and guarantees for entrepreneurs of both countries. This foundation has become the platform on which the growing volume of trade, investment projects, and joint industrial initiatives are now being built.
The growth of mutual trade demonstrates how effectively this foundation works. Trade turnover between the countries increased from $209 million in 2016 to $1.148 billion in 2024 — more than a fivefold increase. Uzbekistan’s exports amount to $128 million, while imports exceed $1 billion, mainly due to fuel, lubricants, chemical products, and industrial goods. At the same time, exports in January–October 2025 rose by 23.7%, reflecting the growing interest of the Turkmen market in Uzbek products and the expansion of the range of competitive goods.
The structure of trade is gradually becoming more complex: volumes of services, mechanical engineering, and finished industrial products are increasing.
A genuine breakthrough was the creation of the Uzbek-Turkmen border trade zone “Shavat-Dashoguz.” The signing of the agreement on its operation and the official launch with the participation of the heads of the two states gave economic cooperation a qualitatively new impetus. This zone is turning into a platform where trade, logistics, and production can be combined in a single space. It allows businesses to reduce transaction costs, speed up deliveries, and access new markets, making the border region a hub of business activity. In addition, the opening of trade houses in Tashkent and Ashgabat creates new tools for promoting goods and direct business interaction.
Investment cooperation is developing steadily. In Uzbekistan, 200 enterprises with Turkmen capital are operating — from the production of facing materials and textiles to furniture factories and service-sector companies.
Projects continue in the agro-industrial complex, oil product processing, and packaging materials production. These initiatives are gradually forming the basis for full-fledged production cooperation, where the countries not only exchange goods but also jointly create value-added products.
Transport connectivity plays a significant role in strengthening economic ties. Intergovernmental agreements in railway, road, and river transport, as well as new memoranda of cooperation, increase the efficiency of transport corridors. In 2024, the total volume of freight traffic reached 1.11 million tons, with transit growing by almost 40%. Projects to repair Turkmen railcars at the Andijan Mechanical Plant and the export of tank cars to Turkmenistan confirm that industrial and transport cooperation is becoming an independent area of mutual interest.
Conclusion and Prospects
Economic interaction between Tashkent and Ashgabat is entering a stage of maturity. A strong contractual and legal base, dynamic trade growth, industrial integration, investment projects, and the launch of the border trade zone are creating the foundation for large-scale cooperation in the future.
Promising areas include deeper industrial cooperation in the chemical, textile, and food industries; transforming the “Shavat-Dashoguz” zone into an industrial-logistics cluster; expanding projects in agriculture and water conservation; developing joint transport infrastructure; creating new investment mechanisms; and encouraging greater private-sector participation in regional projects.
The economy of cooperation between Uzbekistan and Turkmenistan is today forming a sustainable partnership model that strengthens the economic security of both states and enhances their role in regional trade and transit chains. ///nCa, 9 December 2025 (in cooperation with the Embassy of Uzbekistan to Turkmenistan)