Georgia-Uzbekistan Bilateral Trade Increases 88%
Russia avoiding southern route connects Uzbekistan to Georgia and the EU via Turkmenistan
The Georgian National Statistics Office (Geostat) has stated that the trade turnover between Georgia and Uzbekistan from January through February 2022 totaled US$22.2 million – an increase of 88.1 percent, compared to US$11.8 million over the same period of 2021. The trend is significant as it illustrates the growing use of the Southern Belt & Road route through Turkmenistan, and the Caspian Sea.
Uzbekistan is landlocked, with most cargo being transported by road and rail. While goods from China through to the Caucasus and Europe travel through Kazakhstan and exit at Aqtau for maritime shipping to Azerbaijan’s Baku Port, Uzbekistan’s cargo uses a southern route via rail through to Turkmenistan, then heading West to Turkmenbashi Port on the Caspian, with onward shipping to Baku and rail to Georgia.
Turkmenistan is gradually opening up in terms of transit trade, with Chinese companies heavily involved in developing transport infrastructure projects.
Georgia’s imports from Uzbekistan over the January-February 2022 period reached US$5.1 million, an increase of 155 percent. Georgia’s exports to Uzbekistan from during the period reached US$17.1 million, an increase of 74.4 percent. Uzbekistan exports Vegetable Products, Foodstuffs and Textiles, while Georgia exports Chemicals, Minerals, and Foodstuffs.
These new routes are opening up new markets – according to Geostat, Uzbekistan now ranks in the top ten among Georgia’s trading partners. The use of both Turkmenistan and Georgia as transit hubs has special relevance for Uzbekistan and the EU – the two signed off a far reaching ‘Deep & Comprehensive Trade Agreement’ in 2021 with the EU granting Uzbekistan GSP status, removing tariffs on over 6,000 types of Uzbeki products.
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Chris Devonshire-Ellis is the Chairman of Dezan Shira & Associates. The firm assists British and Foreign Investment into Asia and has 28 offices throughout China, India, the ASEAN nations and Russia. For strategic and business intelligence concerning China’s Belt & Road Initiative please email silkroad@dezshira.com or visit us at www.dezshira.com
