Uzbekistan has launched a pilot transport corridor to Mongolia via Kyrgyzstan and China. Delivery of goods along the new 4,500-kilometre road route takes eight days. This gives domestic exporters additional access to the relatively unexplored Mongolian market, which is particularly relevant in light of the strengthening of trade and economic ties with this country.
The course for intensifying mutual trade was set last year, when the President of Mongolia made his first state visit to Tashkent. During high-level negotiations, the parties set the goal of increasing trade turnover several times over, which spurred the preparation of a preferential trade agreement. During the return state visit of the head of Uzbekistan to Ulaanbaatar on 24-25 June this year, this issue was once again prioritized.
Even under the current circumstances, bilateral trade indicators show steady growth. This is especially true for Uzbek exports, which in 2024 exceeded $26 million in total, twice as much as a year earlier. This dynamic gives impetus to the development of inter-country transport links, with a particular focus on road transport, given the signing last year of an agreement between the governments of Uzbekistan and Mongolia. Given the growing demand for mutual transport, an agreement has been reached to double the number of permit forms, and preparatory work has begun on their electronic exchange based on the E-Permit system.
Uzbekistan supplies Mongolia with vegetables and fruits, food products, textiles and cars. There is enormous potential for expanding the range and volume of supplies of in-demand products. Its realization undoubtedly requires effective and reliable transport links between the countries.
Mongolia is bordered by two major powers, Russia and China, but has no direct access to the sea, which determines its complex geo-economic position. Although the country is a key link in the Russia-Mongolia-China economic corridor, which includes the cross-border railway Ulan-Ude-Naushki-Ulan Bator-Erlian-Beijing-Tianjin and a motorway to northern Chinese seaports, which brings certain financial benefits, Mongolia’s transit capabilities are limited to this small geographical area. The expansion of trade routes to neighboring regions, including Central Asia, offers Ulaanbaatar great prospects in terms of diversifying its own exports.
However, the Central Asian region is not only a promising market for Mongolia, but also a land bridge to the world’s oceans. In particular, Uzbekistan, given its desire to create a Trans-Afghan railway corridor with access to Indian Ocean ports, could become Mongolia’s gateway to South Asia. The same effect will be achieved by connecting new freight routes from Mongolia to Uzbekistan with transport and transit corridors towards Iran, its southern seaports and the rest of Western Asia. In addition, transport links with Central Asian countries will open up a route for Mongolia to the South Caucasus, Turkey and Europe via the Caspian Sea. It is believed that after the construction of the China-Kyrgyzstan-Uzbekistan railway, all these connecting routes will become even more important and attractive due to the reduction in time and costs of transporting goods.
* The Institute for Advanced International Studies (IAIS) does not take institutional positions on any issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of the IAIS.
