Uzbekistan Lifts $400 Transit Fee for Iranian Fleet

TEHRAN (Iran News) Javad Hedayati, Director General of the Office of Transit and International Transport, announced the signing of this agreement, emphasizing its potential to support national fleets and lower trade expenses. He highlighted Uzbekistan as a populous nation and the fastest-growing economy in Central Asia, making the agreement crucial for both countries.

Hedayati further noted that Central Asia’s five nations, with their vast geography, high population, and continuous economic growth, serve as key export and transit destinations for Iran. He also mentioned similar agreements in 2022, including the removal of a $1.5 per kilometer transit fee in Turkmenistan and a visa exemption for Iranian drivers in Kazakhstan.

A key aspect of Iran-Uzbekistan relations is their Joint Economic Commission, managed by Iran’s Ministry of Industry, Mine, and Trade and Uzbekistan’s Ministry of Investment, Industry, and Trade. During the 15th session of this commission in mid-2022, both countries agreed to increase bilateral trade to $1 billion by 2025.

Additionally, Iran, Uzbekistan, Oman, and Turkmenistan are part of the Ashgabat Agreement, aimed at establishing an international transport corridor. Iran’s strong production capabilities in pharmaceuticals, food, construction materials, and agriculture, along with its expertise in technical and engineering services, have been key factors in trade relations. The establishment of an Iranian trade center in Uzbekistan further strengthens this partnership.

However, challenges remain. The absence of an Iranian commercial attaché and an independent Iranian bank in Uzbekistan are notable weaknesses. Other obstacles include Uzbek traders’ limited knowledge of the Iranian market, strong competition in Uzbekistan, transportation issues, lack of direct land connections, transit through Turkmenistan, limited flights, and customs tariffs.

Despite these challenges, the strong political will of both countries to boost trade presents a major opportunity for strengthening economic ties.