A special duty-free trade zone is set to be established in the border area between Kazakhstan and Uzbekistan, modeled after the successful Khorgos economic zone. This initiative aims to quadruple trade turnover between the two regions, as reported by ArbatMedia.

To facilitate this project, construction is already underway on a road connecting Kazakhstan’s Mangistau region with Uzbekistan via the Tazhen customs post. 

Once completed, the road from Karakalpakstan to the Kazakhstan border is expected to significantly boost cargo transportation volume.

Currently, a large portion of agricultural products available at wholesale markets in the Mangistau region is sourced from Uzbekistan. 

Approximately 300 trucks pass through the Tazhen customs post daily, with around 30 trucks delivering over 11,000 tons of goods to the Mangistau region. 

The development of the duty-free trade zone is anticipated to enhance this flow of goods and strengthen economic ties between Kazakhstan and Uzbekistan.

In the first nine months of 2024, trade between Uzbekistan and Kazakhstan totaled $3bn, reflecting a 7.12% decline compared to $3.23bn in 2023 and an 8.54% drop from $3.28bn in 2022. 

Over the last seven years, trade volumes have more than doubled, rising from $2bn to $4.4bn by 2023. Kudratov also highlighted that Uzbekistan is home to approximately 1,100 enterprises with Kazakh investment, primarily in sectors like food processing, textile manufacturing, and building materials.