Joint proposals on further development of economic cooperation between Kazakhstan and Uzbekistan

Within the framework of the official visit of the President of the Republic of Uzbekistan Shavkhat Mirziyoyev to the Republic of Kazakhstan, the Kazakh-Uzbek business forum was held in Astana. On the platform of the business forum, which was organized by the initiative of NCE RK "Atameken" and the Chamber of Commerce of Kazakhstan, 10 documents were signed for a total of about 97 million US dollars (one investment project for the amount of 20 million US dollars, nine documents in the export-trade sphere ). As a result, businessmen of the two countries signed 92 documents for a total amount of 840 million US dollars. Opening the business forum, Deputy Chairman of the Board of NCE RK "Atameken" Nurzhan Altaev noted that a very big and significant event is taking place at the present time- the first Kazakh-Uzbek business forum, which has brought together Kazakhstani businessmen and Uzbek partners. "We believe that this is the first step of a new stage in the formation of economic cooperation between Uzbekistan and Kazakhstan. In the previous stages of our cooperation, there was much competition between our countries. Now we understand that alongside us there are huge sales markets - the Russian Federation, the People's Republic of China. Our two fraternal peoples need to cooperate, to go out together to these markets. For example, the PRC market is very large, it is impossible for us to satisfy the demands of the Chinese market and meet these volumes in the food industry. Kazakhstani businesspeople won’t be able to do it on their own, we need to unite.

We need the products that we can’t produce in Kazakhstan due to climatic conditions, due to the lack of this or that raw material, but it is present in Uzbekistan. Therefore, we can unite and promote all these goods to these markets. You know that we are in the same Union with Russia and this gives us great opportunities for export. Our Uzbek partners are ready to enter Kazakhstan, create joint ventures with our businessmen and to export these products to foreign markets. "Within the framework of the signed memorandum on cooperation between the State Joint Stock Concern "Uzfarmsanoat" and the Association of Legal Entities "Association of the Pharmaceutical Cluster of Southern Kazakhstan" an agreement was reached to open two trading houses. "One in Tashkent, where the sale of Kazakhstani medicines will be organized, including LLP Khimpharm and other pharmaceutical companies, the second in Shymkent, through which pharmaceutical products manufactured in Uzbekistan will be sold", - added Nurzhan Altayev. Another strategic direction of the Kazakh-Uzbek relations is the cooperation of our countries’ businesses in the food and light industries, believes deputy chairman of NCE RK Nurzhan Altaev. "Our partners have a great experience in these industries; through cooperation we will be able to enter the markets of our border countries. And there is no need to be afraid of competition here, smart businessmen should understand this. Even if you look at the exposition of the exhibition of today's business forum, you can use much of presented goods as a raw material for a full-scale production. In Uzbekistan, the textile industry is very developed, we have a lot of sewing enterprises, but unfortunately, we do not have our own production lines of fabrics and textiles, thus, it is bought from abroad. A very good opportunity to purchase raw materials from Uzbekistan, which is several times cheaper at cost, for example, to the Russian equivalent. There is a real opportunity, creating joint ventures to go out with this light industry to other markets. "A separate issue, according to Nurzhan Altaev, are fruit and vegetable products. "Especially during the off-season and winter period, when we do not grow it due to climatic conditions, but it is cultivated in Uzbekistan, we can establish processing enterprises in our territory and enter the foreign markets with a joint product. "At the plenary session of the forum, the Minister for Investment and Development of Kazakhstan Zhenis Kasymbek noted that the visit of the President of Uzbekistan Shavkhat Mirziyoyev to our country during these holidays is symbolic.  "On the holiday of nature renewal, we want to accelerate the pace of mutual development and trade. Uzbekistan is our brotherly state. Our relations are of a strategic and long-term nature, an agreement on encouraging and mutual protection of investments has been in force between our countries since 1997. For Uzbekistan, in turn, Kazakhstan is one of the major trading partners, however, the potential that exists between our Countries, we do not fully use it. This was repeatedly noted by the Heads of State during bilateral talks, therefore, the governments of the two countries were instructed to triple the volume of trade turnover from 1.5 billion USD to 5 billion USD by 2020 ". According to Zhenis Kasymbek, the first results are already there. "The range of reciprocal deliveries is expanding, in particular, we began to supply chemical products, construction materials, agricultural products from Kazakhstan. Imports of fruit and vegetable products from Uzbekistan has increased, as evidenced by the document signed today for 500 million USD. An important step for the expansion of trade relations will be the expansion of the range of supplied goods, the opening of trading houses, representative offices of export organizations in the territories of the two countries. Kazakhstan is already ready to expand exports in such areas as energy, metallurgy, food, light industry, as well as machine building, pharmaceuticals, tourism and much more. More than 800 enterprises with the Uzbek capital operate in Kazakhstan. A vivid example is LLP "Sary Arch Auto Industry" and JSC "Uzavtosanoat" for the assembly of products.  "At the exhibition, a line of equipment was collected on the production lines of Uzavtosanoat, which, according to the minister, has a great potential for the development of joint ventures. It should be noted that on the margins of the business forum, negotiations were held with the participation of Kazakh and Uzbek entrepreneurs in B2B format, as well as an exhibition of industrial and consumer goods of Uzbekistan, at which participated over 100 Uzbek companies of light and food industry, machine building and construction, banking system, investments and others. In total, the forum was attended by more than 500 people, 150 of them are our Uzbek partners. The result of the work of the Kazakh-Uzbek business forum was a number of agreements signed by signatures: 1. agreement on the organization of assembly production (SKD) of the cars of JSC JM Uzbekistan; 2. Memorandum of Understanding on the supply and transit of crude oil to NC KazMunaiGas and NHC Uzbekneftegaz; 3. contracts for the supply of fresh and processed fruit and vegetable products between JSC "Uzagroexport" and LLP "A-Fruitts"; 4. Consignment contract for export of goods between JSC "Uzsanoatexport" and LLP "Kazakh-Uzbek Trade House "Neftekhim Trading"; 5. contracts for the supply of fresh and processed fruit and vegetable products between JSC "Uztabirkorexport" and LLP "Central Asian Trade House"; 6. Memorandum on cooperation between the State Joint Stock Concern "Uzfarmsanoat" and the Association of Legal Entities "Association of Pharmaceutical Cluster of Southern Kazakhstan"; 7. General agreement on general conditions for conducting operations in financial markets; 8. Memorandum of Understanding between the Fund for Support of Export of Small Business and Private Entrepreneurs and JSC "NAEI" KaznexInvest"; 9. Agreement on cooperation between LLP "Chamber of Commerce of Kazakhstan" and the Chamber of Commerce and Industry of the Republic of Uzbekistan; 10. Agreement on the establishment of the Business Council between the Chamber of Commerce and Industry of the Republic of Uzbekistan and LLP "Chamber of Commerce of Kazakhstan".