From July 2 to 4, President of Uzbekistan Shavkat Mirziyoyev paid a state visit to Azerbaijan, during which the second meeting of the High-Level Intergovernmental Council was held. On July 4, the Uzbek leader also took part in the 17th Summit of the Economic Cooperation Organization (ECO), where he outlined priorities for the organization’s development amid growing geopolitical instability.
Uzbekistan and Azerbaijan are both members of ECO. Therefore, the alignment of the Uzbek President’s state visit with participation in the ECO Summit allowed for a coordinated review of cooperation priorities, not only with strategic partner Azerbaijan but also with other ECO member states.
In recent years, Uzbekistan and Azerbaijan have seen dynamic growth in trade, economic, and investment cooperation, highlighting the strategic nature of their bilateral relationship.
Over the past eight years, trade turnover has seen impressive growth. Bilateral trade grew 7.8 times, reaching $253 million. Uzbek exports to Azerbaijan increased 7.5-fold to $208 million, while imports grew ninefold to $45 million in 2024.
Investment cooperation has also intensified, with joint projects in industry, agriculture, energy, and pharmaceuticals. In 2017, investments from Azerbaijan to Uzbekistan totaled just $142,000, while in 2024 they reached $79.5 million. The Azerbaijan–Uzbekistan Investment Company, with authorized capital of $500 million, is operational. The number of enterprises in Uzbekistan with Azerbaijani capital rose from 178 in 2019 to 278 by April 2025.
Conversely, in Azerbaijan, Uzbek capital has facilitated projects such as automobile assembly, and the creation of silkworm and textile clusters. In the city of Hajigabul, a production line by UzAuto Motors JSC and SamAvto JV LLC was launched at the Azermash CP plant.
In agriculture, Azerbaijan is testing several Uzbek cotton varieties, while Uzbekistan plans to cultivate high-yield Azerbaijani hazelnut seedlings. A joint investment project in Azerbaijan’s sericulture sector is also underway.
This dynamic cooperation is further supported by a research model developed in 2023 under the initiative of the President of Uzbekistan to create a forum of think tanks for expanding trade among Turkic states. Joint research by the Center for Economic Research and Reforms (CERR) and Azerbaijani analytical institutions resulted in 33 concrete proposals for bilateral cooperation, approved by the Cabinet of Ministers of Uzbekistan and currently under implementation.
Ahead of the state visit, the first Interparliamentary Forum was held in Khiva, and a Regional Forum convened in Baku. Recently, Andijan hosted the inaugural Rectors’ Forum. Uzbekistan is also preparing to establish an “Azerbaijan” Park and the “Sea Breeze” tourism complex. During the visit, construction of the “Uzbekistan” Park began in Baku, and a new building for the Uzbek Embassy was inaugurated.
The Head of our state emphasized that the visit took place in the year marking the 30th anniversary of diplomatic relations.
The sides agreed to take joint measures to increase bilateral trade and investment volumes to $1 billion in the coming years. A separate Program for Trade Promotion and Cooperation was adopted. The joint investment company’s activities will be expanded, and new formats like the Business Council and the Forum of Industrial and Economic Zones will be launched.
Special attention was given to strengthening transport connectivity. The Middle Corridor is rapidly developing, linking the two nations and offering access to strategic routes. E-permits have been introduced, and Uzbek freight traffic through the corridor has increased by 25%, with annual volumes now exceeding one million tons. Agreement was also reached to accelerate a joint project on electricity exports to Europe.
While progress has been made, Uzbekistan and Azerbaijan’s trade and investment potential remains underutilized. Joint production of goods currently imported from third countries presents strong opportunities.
Further potential lies in combining efforts in areas of mutual advantage, such as viticulture, pomegranate cultivation, and agro-processing. Joint entry into third-country markets with agricultural products could strengthen competitiveness and open new niches.
Agreements from the state visit will enhance cooperation in industry, agriculture, digital technology, and logistics.
The 17th ECO Summit was held in Khankendi under the theme “A New Vision for a Reliable and Climate-Resilient Future”, concluding the ECO Week in the Karabakh region.
At the 16th ECO Summit (Tashkent, 2023), President Shavkat Mirziyoyev proposed a strategic document – “Economic Cooperation Goals 2035” – to address trade barriers, digitalize customs and sanitary procedures, and double mutual trade by 2035 through e-commerce.
In 1996, Uzbekistan signed free trade agreements with Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan. Preferential trade agreements were signed with Pakistan, Turkey, and Iran in 2023, and with Afghanistan in 2024.
Between 2017 and 2024, Uzbekistan’s trade with ECO countries more than doubled from $5.3 billion to $12.2 billion. Exports grew 1.7 times (from $3.3 billion to $5.6 billion), and imports tripled (from $2 billion to $6.6 billion). However, the ECO’s share in Uzbekistan’s total foreign trade declined from 19.9% to 18.5%, with exports falling from 26.2% to 20.7%, and imports rising from 14.3% to 17%.
In 2024, ECO countries invested $2.7 billion in Uzbekistan, a dramatic increase from just $9.6 million in 2017. Turkey accounted for $1.8 billion (68.6%), followed by Kazakhstan ($358.5 million), Iran ($161.5 million), Azerbaijan ($79.5 million), Afghanistan ($72.9 million), and Kyrgyzstan ($60.4 million).
Uzbekistan hosts thousands of ECO joint ventures across textiles, food processing, electrical goods, pharmaceuticals, construction, logistics, and services. As of May 1, 2025, there were 5,275 active enterprises with ECO investment – 33% of all foreign-invested joint ventures. Turkish capital accounted for 1,964 (37.2%).
At the Khankendi Summit, President of Uzbekistan praised the organization’s achievements since the 2023 Tashkent Summit and noted the low volume of mutual trade – $95 billion in 2024, or 10% of the bloc’s external trade.
He called for trade facilitation, gradual elimination of non-tariff barriers, and development of e-commerce. He proposed hosting an ECO trade ministers’ meeting in Tashkent and the creation of “green corridors” for seamless agricultural trade.
He urged the adoption of the “Strategic Goals of Economic Partnership – 2035” concept, emphasizing cooperation in innovation, AI, and digital technology. A proposed “EcoInvest” program would attract private investors and financial institutions to regional projects.
He also advocated for creating a Digital Transport and Customs Agency and launching new regional air routes and joint tourism-aviation strategies. A forum of national airlines is proposed for Samarkand.
On climate, he proposed a transboundary green program to create forests and recreational zones in desert areas. He also called for specific recommendations on reforming the organization before the next summit.
Following the summit, ECO leaders agreed to strengthen cooperation in trade, connectivity, and green transformation – priorities Uzbekistan has consistently promoted. They reaffirmed commitments to the SDGs and deepening ties in tourism, energy, science, education, and culture.
The “Strategic Economic Goals – 2035” concept is advancing, incorporating ideas voiced at the Karabakh ECO Week. This initiative was proposed at the Tashkent ECO summit and has been consistently promoted by the President of Uzbekistan as a key factor in strengthening the economic interconnectedness of the ECO and forming regional value chains.
In the current challenging conditions, when the international community is facing a severe crisis and most conflicts and contradictions are occurring in the ECO region, the President of Uzbekistan emphasized at the beginning of his speech at the summit that the foundation of peace and development is, above all, economic cooperation. Therefore, partnership within the ECO framework today holds significant strategic importance.
Follow the latest news on Google News
