Uzbekistan Signs $44 Million Export Deals with Afghanistan During Business Delegation Visit

Uzbekistan has signed export contracts worth $44 million with Afghanistan during a three-day visit to Tashkent by a delegation of Afghan businessmen. The agreements cover a range of sectors including foodstuffs, construction materials, textiles, and other products.

The two nations also plan to form an Uzbekistan-Afghanistan Business Council, which will have 18 Afghan companies as members. An agreement was reached to establish the council comprising 18 major companies from both nations, aimed at supporting ongoing business collaboration and economic engagement between Uzbekistan and Afghanistan.

Why this matters: The export deals and establishment of a joint business council represent significant steps in strengthening economic ties between Uzbekistan and Afghanistan. Increased trade and business cooperation could contribute to stability and development in the region.

Afghanistan's import market is worth $7 billion, and the goods most in demand with Afghan importers are agricultural products, processed food, textiles, leather, electrical components, and construction materials. Uzbekistan has emerged as Afghanistan's ninth-largest trading partner, with Uzbekistan exporting goods worth $219.9 million to Afghanistan, while imports from Afghanistan were valued at $4.9 million.

The trade turnover between Uzbekistan and Afghanistan as of early April 2024 amounted to $224.8 million, showing an increase of 24.6% over the previous year. In 2023, the trade volume between Uzbekistan and Afghanistan totaled $866.9 million, with Uzbekistan ranking among Afghanistan's top ten trade partners.

The signing of the $44 million export contracts and the agreement to establish the Uzbekistan-Afghanistan Business Council demonstrate the commitment of both nations to expand their economic cooperation. The business council, with 18 major companies from Uzbekistan and Afghanistan as members, will play a key role in facilitating ongoing trade and business engagement between the two countries.

Key Takeaways

• Uzbekistan signed $44M in export contracts with Afghanistan.
• Uzbekistan and Afghanistan plan to form a bilateral business council.
• Afghanistan's import market is worth $7B, with Uzbekistan as 9th largest partner.
• Uzbekistan-Afghanistan trade turnover reached $224.8M in early 2024, up 24.6%.
• The agreements demonstrate commitment to expand economic cooperation between nations.