07.03.25

Starting from 25 February 2025, Uzbekistan and Turkmenistan will officially implement a free trade regime. This milestone was achieved following the completion of all necessary procedures for the implementation of the Protocol on Exemptions from the Free Trade Regime, which was signed as part of the Agreement between the governments of the two countries on July 16, 2024, in Tashkent.

The protocol, approved by Presidential Decree No. PP-29 of the Republic of Uzbekistan on January 27, 2025, provides for the removal of customs duties on most goods produced in Uzbekistan and Turkmenistan, with the exception of certain product categories agreed upon by both parties.

With the introduction of this new regime, existing trade barriers have been eliminated, customs procedures have been simplified, and duties on key goods have been abolished. These include:

Cement products (previously subject to a 100% tariff)

Textiles (50%)                   

Furniture (50%)

Glassware (50%)

Water heaters (15%)

Plastic and polypropylene products (10%)

Sausage and meat products ($2 per kg)

Cottonseed oil ($1 per kg)

In 2024, trade turnover between Uzbekistan and Turkmenistan reached US$1.14 billion, marking a 5.5% increase compared to the previous year. The introduction of the free trade regime is expected to further boost bilateral trade by expanding investment cooperation and enhancing industrial partnerships.

The Ministry of Investments, Industry, and Trade of Uzbekistan, in collaboration with relevant agencies, has already launched mechanisms to maximize the benefits of the new regime. This initiative will enable local producers to increase exports to the Turkmen market while strengthening economic ties between the two nations.

The free trade regime establishes favorable conditions for the continued development of trade and economic relations between Uzbekistan and Turkmenistan. It represents a significant step in implementing long-term cooperation strategies aimed at enhancing the competitiveness of both economies and improving the investment climate in the region.

The Ministry of Investments, Industry, and Trade remains committed to eliminating barriers and creating the most favorable conditions for foreign trade development, in line with the goals of sustainable economic growth.

https://www.uzdaily.uz/en/uzbekistan-and-turkmenistan-introduce-a-free-trade-regime/