Free trade regime between Uzbekistan and Turkmenistan is already in force!

Starting February 25, 2025, a new era began in relations between Uzbekistan and Turkmenistan: the two countries officially introduced a free trade regime. This significant step in the development of bilateral economic relations opens up new opportunities for business and investment.

What does this mean?

The free trade regime entails the elimination of customs duties on most goods produced within both countries. This will allow companies to export and import products without additional tax costs, making goods more accessible and competitive.

Historical overview of trade and economic relations

Uzbekistan and Turkmenistan are close neighbors with shared historical and cultural ties. However, their trade and economic relations have undergone significant changes over the past decade. In the mid-2010s, the volume of bilateral trade was relatively low and unstable.​

In 2017, the presidents of the two countries signed a Strategic Partnership Agreement, marking a new starting point for cooperation. Since then, trade and economic ties have dynamically strengthened.

Between 2017 and 2023, the volume of mutual trade increased more than fivefold.

Over the decade from 2014 to 2024, bilateral trade turnover grew significantly—from several hundred million to over one billion dollars annually.

Joint projects in transport and logistics played a crucial role, with countries collaborating to develop cross-border corridors and infrastructure to facilitate the movement of goods. By the mid-2020s, Uzbekistan and Turkmenistan had established a solid foundation for further expanding cooperation.

Which goods are exempt from duties?

The following goods are exempt from duty when imported into Turkmenistan:

• Cement (previously subject to a 100% duty)
• Textile products (50%)
• Furniture (50%)
• Glassware (50%)
• Water heaters (15%)
• Plastic and polypropylene products (10%)
• Sausages and meat products (up to $2 per kg)
• Cottonseed oil (up to $1 per kg)

This will pave the way for more active trade in these segments and reduce prices on imported goods for consumers.​

Are there any exceptions?

Yes, approximately 30 categories of goods are excluded from the free trade regime. Among them:

• Automobiles
• Tobacco products
• Precious metals
• Jewelry

These goods remain subject to customs duties and are controlled separately.

Why is this important?

As noted earlier, by 2024, the volume of mutual trade between Uzbekistan and Turkmenistan surpassed $1 billion, reaching $1.14 billion, an increase of 5.5% compared to the previous year. The new free trade regime is expected to serve as a powerful stimulus for further growth in trade turnover.

Expansion of investment cooperation and development of industrial collaboration are also anticipated, especially in the fields of energy, agro-industry, and construction.

Logistics solutions in the region

The recent innovations will undoubtedly impact regional logistics. Alliance Multimodal closely monitors developments in the region, as this direction is among the most important for us.​

We provide logistics solutions for transporting goods from China, Turkey, and other countries to Azerbaijan, Georgia, Turkey, Europe, and Central Asian countries, including Uzbekistan and Turkmenistan.​

By effectively combining various modes of transport—rail, sea, and road—we offer comprehensive solutions for cargo delivery, minimizing transit time and transportation costs.​

We are ready to become your reliable partner in the field of logistics and ensure efficient delivery of your goods to Central Asian countries and other regions.