Uzbekistan and Kazakhstan plan to create a joint cluster for the processing of cotton.
Work on the project has already begun. Uzbekistan and Kazakhstan will take control of the whole process, from processing of “white gold” to receiving finished products.
“The textile industry is one of the important calling cards of the country. A lot of experience has been accumulated in the production of textile products. This is very important – starting with the planting of cotton, ending with its processing, thus bringing it to export potential,” Yerik Utembayev, Kazakhstan’s ambassador to Uzbekistan, said.
Within the framework of the new project, the two sides also plan to build new joint ventures. This will be the basis for the development of the textile industry of Uzbekistan and Kazakhstan.
In addition, work is underway to implement an investment project to increase the volume of exports and imports between the countries. This was facilitated by the agreement signed during the meeting of the leaders of Uzbekistan and Kazakhstan.
“As many as 180 enterprises, thanks to the support of foreign investors, operate in the Andijan region today. Basically, these projects are implemented with the help of investors from China, South Korea, Kazakhstan and Kyrgyzstan. Taking into account the potential of the region, we invite investors. To date, there is an agreement to implement an investment project with Kazakhstan in the amount of $18 million,” said Abdusattor Ahmadov, head of the investment department of the Andijan region.
Kazakhstan mainly exports transformer equipment and other industrial goods to Uzbekistan. In the future, this list will be replenished by the products of the pharmaceutical and cotton-textile industries. Experts believe that, as a result of the upcoming forum on interregional cooperation, investment opportunities between the two countries will expand substantially.
By 2020, taking into account the potential of the mutual trade, the two sides intend to bring it up to $5 billion. Over 200 companies with Kazakh capital currently operate in Uzbekistan. As a result of 2017, the trade turnover between Kazakhstan and Uzbekistan has increased by 30 percent and amounted to about $2 billion.
It should be noted that 2018 is declared as the year of Uzbekistan in Kazakhstan whereas 2019 will be the year of Kazakhstan in Uzbekistan.