Uzbekistan and Turkmenistan have officially established a free trade regime, effective February 25, 2025, following the completion of bilateral procedures for implementing the Protocol on Exemptions from the Free Trade Regime. The agreement, which outlines key directions for long-term trade and economic cooperation, was signed on July 16, 2024, in Tashkent.
The initiative is part of Uzbekistan’s broader strategy to improve its investment climate, eliminate trade barriers, and create favorable conditions for foreign trade. The protocol was approved by Decree No. PP-29 of the president of Uzbekistan on January 27, 2025.
In 2024, trade turnover between Uzbekistan and Turkmenistan reached $1.14bn, marking a 5.5% increase compared to the previous year. The new free trade regime is expected to further accelerate trade and investment cooperation by removing customs duties on goods produced within both countries, except for specific product categories.
Key benefits of the agreement include:
- Elimination of customs duties on a range of goods exported to Turkmenistan, including cement (100% duty), textiles (50%), furniture (50%), glassware (50%), water heaters (15%), plastic and polypropylene products (10%), sausages and meat products ($2 per kilogram), and cotton oil ($1 per kilogram).
- Removal of existing trade restrictions and simplification of trade procedures.
The Ministry of Investment, Industry, and Trade, in coordination with relevant agencies, has launched a mechanism to facilitate the effective use of the free trade regime, ensuring greater access for Uzbek exporters to the Turkmen market.
The agreement is expected to strengthen economic ties, increase trade volume, and encourage industrial collaboration between the two neighboring countries.
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