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Commentary

28 September, 2025

New Architecture of World Trade: Synthesis of Multilateralism and Open Plurilateralism

On September 22, President of Uzbekistan Shavkat Mirziyoyev met with Director-General of the World Trade Organization (WTO) Ngozi Okonjo-Iweala in New York to discuss issues related to Uzbekistan's accession to the WTO. The WTO chief noted the significant progress made by Uzbekistan and expressed hope that all accession procedures would be completed by March 2026.   Uzbekistan applied for WTO membership in 1994. However, in 2005, the accession process was suspended due to the import substitution policy in place at the time. The process resumed in March 2018 after an official application was submitted to the WTO Secretariat. Today, Uzbekistan is at an advanced stage of the accession process. The country plans to join the WTO before the start of the 14th Ministerial Conference, which will be held in Cameroon in 2026. Bilateral negotiations have been completed and market access protocols have been signed with 29 countries. According to Azizbek Urunov, the president’s representative on WTO issues, only three countries remain to fully complete bilateral negotiations. Uzbekistan is actively pursuing reforms aimed at bringing national legislation into line with WTO requirements. These reforms concern the areas of trade in goods, services, intellectual property, and agriculture.   Uzbekistan’s accession to the WTO will accelerate market reforms, increase the predictability of national economic policy, and create the conditions for growth in exports and investment and increased economic productivity. However, in light of increased protectionism on the part of the world's leading economies and the unfolding of trade wars, many experts are skeptical about the future of the multilateral trading system. According to Michael Froman, president of the US Council on Foreign Relations, “The global trading system as we knew it is dead. The WTO has effectively ceased to function because it is unable to negotiate, monitor, or enforce the commitments of its member countries”.   As an alternative to the current multilateral trade regulation system, he proposes “building a new system around open plurilateralism: coalitions of countries that have common interests in certain areas and come together to adopt high standards on specific issues, while remaining open to other countries that share these interests and are willing to implement such standards”. Froman notes that the advantages of the new system are its flexibility and adaptability. At the same time, the proposed system is inferior to the current one in terms of economic efficiency, since its benefits will be distributed only among the participating countries. There is also a risk of a “spaghetti effect” arising from the fact that the same countries may be parties to different plurilateral agreements and have conflicting obligations. Despite these shortcomings, Froman believes that such a network may prove to be more politically stable than a multilateral trading system.   In her speech at a meeting organized by the Peterson Institute for International Economics (USA), WTO Director-General Ngozi Okonjo-Iweala emphasized that while many have already declared the “death of the WTO”, others see this as an opportunity to build a stronger and more sustainable trading system. Despite the disruption of global trade due to unilateral measures, the WTO “remains alive”. Before the rise of protectionism by the US and the introduction of retaliatory measures by other countries, 80% of world trade was conducted on the basis of most-favored-nation (MFN) treatment. Currently, this figure has fallen to 72%. At the same time, 75% of world trade in goods is still conducted under WTO terms, which demonstrates the resilience of the multilateral system in times of global uncertainty.   The WTO Director-General noted the need to reform the WTO system to make it more flexible. “My agenda for the next term is to preserve what works, reform what doesn’t, and look to the future by creating new rules and agreements to increase the benefits of international trade”, she emphasized.   Despite the current tensions in global trade, a multilateral agreement on fisheries, ratified by 114 WTO member countries, has come into force for the first time in eight years, demonstrating their commitment to achieving sustainable development through the establishment of new trade rules. At the same time, active work is underway within the WTO platform to conclude a number of plurilateral agreements, for example, in the field of e-commerce. In other words, coalitions of member countries are being formed within the WTO to conclude new agreements aimed at addressing specific issues. According to Ngozi Okonjo-Iweala, some WTO members are concerned about the focus on concluding plurilateral agreements, as they may undermine the significance of multilateral agreements. She stressed that there is no need to fear this, as there is a need for a “basket of different tools” to increase the flexibility and resilience of the WTO. Therefore, coalitions of different countries are welcome in the WTO; they do not create a parallel system, but complement the existing mechanism.   The WTO Secretary-General noted that the global trading system was created to ensure the interdependence of countries and has proven its effectiveness over the past 80 years. In particular, as a result of the development of global trade based on transparent regulatory rules, more than 1.5 billion people have been lifted out of absolute poverty. It is now important to ensure the sustainable development of the global economy with a focus on reducing “over-dependence” on individual suppliers and markets. Therefore, the WTO supports the creation of coalitions of members aimed at reducing “over-dependence” and decentralizing supply chains with the broad involvement of countries with relatively low incomes.   Ngozi Okonjo-Iweala expressed her hope that at the Fourteenth Ministerial Conference in Cameroon, WTO member countries would reach a consensus and adopt a package of key reforms that would strengthen the effectiveness of the multilateral trading system. By becoming a full member of the WTO, Uzbekistan will be able to contribute to the improvement of international trade rules, taking into account national interests for the benefit of the prosperity of the people. Uzbekistan’s strategic goal is not only to join the WTO as a new member, but also to become an initiator of the renewal of its rules. The WTO remains the most effective platform for establishing “rules of the game”, and plurilateralism is a key tool for their rapid improvement. The country’s task is to skillfully use these resources to achieve sustainable development and protect its national interests.   * 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.

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Commentary

25 September, 2025

The Era of a New Central Asia: From Words to Action

President Shavkat Mirziyoyev’s address at the 80th session of the UN General Assembly signaled a qualitative shift in Central Asia’s path toward regional consolidation. His statement that the region has “transformed from a space of closed borders and unresolved disputes into a zone of peace, good-neighborliness, and partnership” carries not only symbolic, but also practical significance.   Since 2017, the region has achieved results once deemed unattainable. Over eight years, the volume of mutual trade, investment, and transport flows has increased fivefold. Joint investment funds and cross-border trade zones have been established, industrial cooperation mechanisms developed, and major infrastructure projects launched. For the international community, Central Asia now exemplifies how political will and regional solidarity can reshape an entire geopolitical landscape.   Equally important is the emergence of a new regional identity. For the first time in its modern history, Central Asia is positioning itself not as an object of external strategies, but as an autonomous subject of international relations. This is reflected in the growth of regional agency, the articulation of a common agenda, and the advancement of initiatives generated from within the region itself.   Particular weight in President Mirziyoyev’s address was given to practical proposals: holding an international forum on Central Asian economic development under the auspices of ECOSOC and UNCTAD; establishing a regional hub for green technologies in partnership with UNIDO; developing joint programs on the rational use of water resources and demographic sustainability. These initiatives align seamlessly with the global sustainable development agenda and demonstrate the region’s readiness not only to address its own challenges, but also to contribute to resolving issues of global concern.   Of strategic importance is the proposal to adopt a UN General Assembly resolution supporting the efforts of Central Asian states to deepen regional partnership and economic integration. Such a resolution would consolidate the achievements of recent years at the level of international law and further strengthen the region’s standing as a zone of sustainable peace and development.   In sum, Central Asia is entering an era of implementation. The region has moved from symbolic declarations to tangible outcomes and concrete initiatives, shaping its own model of consolidation while steadily expanding its influence on international processes.   * 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.

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Commentary

18 September, 2025

Could the Lapis Lazuli Corridor hinder Uzbekistan’s transit prospects?

Azerbaijan is strengthening its political and economic ties with the Taliban government by playing an active role in creating and developing promising transport routes to South Asia. At the forefront is the Lapis Lazuli Corridor, launched in 2018 through a joint initiative of Afghanistan, Azerbaijan, Turkey, Georgia and Turkmenistan, similar to the ancient route of the Great Silk Road.   On July 2, 2025, on the sidelines of the Economic Cooperation Organization summit in Khankendi, Azerbaijan, Abdul Ghani Baradar, Afghanistan’s Deputy Prime Minister for Economic Affairs, met with Azerbaijani Prime Minister Ali Asadov. They emphasized Baku’s readiness to increase export and import volumes with Afghanistan. They also discussed prospects for developing deliveries in the South Asia-Caucasus-Europe direction. This would involve expanding the Lapis Lazuli Corridor to Pakistan and India, enabling participants to attract transit cargo from India and the EU. Trade between these two economic giants has grown steadily and reached $137 billion in 2024.   However, the transit corridor from Europe to India via the South Caucasus, Turkmenistan and Afghanistan could threaten the viability of the Belarus-Russia-Kazakhstan-Uzbekistan-Afghanistan-Pakistan-Indian Ocean ports multimodal corridor suggested by Uzbekistan. This initiative is linked to the Trans-Afghan Railway project (also known as the Kabul Corridor), which would run from Termez to Naibabad, Maidanshahr, Logar and Kharlachi, with a projected carrying capacity of up to 20 million tons per year. If the Lapis Lazuli Corridor is activated in an expanded version, Tashkent risks losing these flows, as the cargo will bypass the country.   It is highly probable that the Lapis Lazuli Corridor will be integrated with the western Trans-Afghan Railway along the Torghundi-Herat-Kandahar-Spin Buldak route. This route is being promoted by Ashgabat and Astana as an alternative to the Kabul Corridor, which would also conflict with Uzbekistan’s interests.   Russia may be seriously interested in the Lapis Lazuli Corridor, particularly given that Moscow has already announced its intention to establish a connection with Afghanistan via the Caspian Sea, making use of Turkmenistan’s port and railway infrastructure.   To maintain and increase its competitive advantages in the trans-Eurasian and trans-Afghan transport sectors, Uzbekistan must strengthen its coordination with neighbouring partner countries, including Azerbaijan, regarding transport and transit issues. Consideration should be given to extending the Middle Corridor to Afghanistan via Uzbekistan, with the possibility of continuing the route to Pakistan through the Kabul Corridor.   * 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.

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08 September, 2025

Why Do the SCO Countries Need a Unified Transport Space?

In global politics, the words and actions of major powers are often the first to be scrutinized, which can foster a misleading perception of their outsized role in advancing key decisions and initiatives. Yet this is not always the case. Smaller states, too, are capable of setting the tone on the international agenda. A vivid example of this was seen at the anniversary summit of the Shanghai Cooperation Organization (SCO) in Tianjin, China.   The Central Asian states form the very core of the SCO. At their current stage of development, they are emerging as responsible actors in international relations, increasingly aware of the need to pool efforts in building a shared regional destiny. The first signs of this long-anticipated regional cohesion can be discerned in the remarkable alignment of positions on pressing foreign-policy issues.   At the Tianjin summit, the leaders of the Central Asian states spoke with remarkable unanimity on strengthening regional security, dismantling trade barriers, harnessing water, energy and transit potential more effectively, and attracting investment to promising sectors of industrial production — including the extraction and processing of critical minerals. Importantly, these priorities were articulated not from a position of petitioning for support, but from one of agency and initiative. Hence the bold and forward-looking ideas placed on the table before the larger “Shanghai family”. One proposal in particular deserves closer attention.   The President of Uzbekistan advanced the initiative of creating a unified SCO transport space — in essence, a call for an extensive network of digitalized transport corridors linking all SCO members, irrespective of geography.   At the heart of this significant initiative lies a structural challenge: the fragmented integration of road and railway networks among SCO countries. For instance, India and Pakistan — the largest states in South Asia and full members of the SCO — lack direct access to Central Asia and to the northern latitudes of Eurasia, such as Russia and Belarus. Existing routes between these macro-regions are prohibitively long and costly, significantly constraining trade flows.   Consider also the case of Iran. As a pivotal actor in Eurasia’s transit architecture and a participant in the Southern Railway Corridor linking East and Central Asia with Europe, Iran nevertheless remains insufficiently integrated into the transport networks of the Central Asian republics — and more broadly, the CIS space, many of whose members are part of the SCO. Divergent transport regulations, shipping documentation, technical standards, and border-customs regimes undermine the effective functioning of interregional transport corridors, with predictable negative consequences.   Uzbekistan is preparing to operationalize the Trans-Afghan (Kabul) Corridor — the Termez–Naybabad–Maidanshahr–Logar–Kharlachi route — envisioned as a transport bridge connecting Europe, China and South Asia. This project is expected to dovetail with the ambitious China–Kyrgyzstan–Uzbekistan high-mountain railway and the Northern Corridor. Together, they will dramatically expand the export and transit capacity of Central Asian states, securing long-sought direct rail access to the Indian Ocean ports.   Preliminary estimates indicate that Uzbekistan and Kazakhstan could attract an additional transit flow of up to 20 million tons annually, while Kyrgyzstan and Tajikistan could receive as much as 5 million tons per year. To prepare for such a prospect, Uzbekistan is already urging SCO partners to institutionalize the concept of a unified transport space. Its realization would ostensibly fall under the purview of the Council for the Integration of Railway Spaces of SCO Countries, the establishment of which — with headquarters in Tashkent — was proposed a year ago.   * 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.

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30 August, 2025

Economic Security Strategy and New Horizons for Cooperation between Japan and Central Asia

The visit of Japanese Foreign Minister Takeshi Iwaya to Central Asian states was closely linked to Tokyo’s domestic political and economic agenda. The trip was seen as a preparatory stage for the C5+Japan summit and was intended to give new substance to Japan’s engagement with the region.   Amid growing competition from China, Russia, Turkey, and the EU, Japan seeks to emphasize its willingness to remain a significant partner for Central Asia, relying on economic diplomacy, technological cooperation, and support for structural reforms. A key factor is economic security policy, which has been a central element of Japan’s strategy since 2022. The Economic Security Promotion Act is forcing Tokyo to seek more reliable sources of critical minerals, which determines the importance of cooperation with Uzbekistan for Japan. Tokyo seeks to guarantee long-term access to strategic raw materials, primarily metals for battery production and renewable energy.   Japanese diplomacy is currently characterized by a desire to “make up for lost time”, which highlights the weakness of the country’s political leadership against a backdrop of internal instability and declining popularity of the prime minister. According to experts, the visit yielded important results in the form of agreements in the fields of industry, energy, and logistics, as well as the establishment of a Strategic Dialogue between the foreign ministers.   In its official releases, Japan’s Foreign Ministry notes that Uzbekistan is showing steady economic growth and that bilateral relations with Japan have strengthened significantly, especially after the Uzbek president’s visit to Japan in December 2019.   The launch of the new Strategic Dialogue format sets an institutionalized and predictable rhythm of interaction, which increases the stability of Japan’s relations with Central Asia and forms a coordination mechanism, including the preparation of the agenda for the upcoming C5+Japan summit.   Thanks to the agreements reached, Uzbekistan’s potential for receiving development assistance and access to advanced technologies is expanding. The project in the Surkhandarya region is forming a model of “human security + green growth” that can be scaled up in the Aral Sea region, Fergana, and Kashkadarya.   In addition, the potential for developing educational and humanitarian cooperation is gaining momentum. In particular, scholarship programs, Japanese language studies, and academic exchanges are opening up new opportunities for Uzbek universities to expand dual degree programs and specialist training. The establishment of the first Japanese university in Tashkent will form the basis for long-term cooperation and training personnel for joint initiatives.   Practical steps to maximize the results of the visit cover several areas. It seems appropriate to put forward new initiatives at the C5+Japan summit to deepen cooperation with Japan in areas such as green transport corridors, energy, smart cities, visa programs for IT specialists and engineers, and the organization of a forum on critical minerals.   Thus, Takeshi Iwaya’s visit confirmed Japan’s increased interest in Central Asia and underscored Uzbekistan’s strategic role in supply chains, sustainable development, and humanitarian initiatives. Institutionalizing dialogue, accelerating pilot projects, and establishing the first Japanese university in Tashkent will allow Japan to maximize the results of its diplomatic activity.   * 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.

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29 August, 2025

CPEC on the threshold of Central Asia: New horizons for Uzbekistan via Afghanistan

The recent trilateral meeting of the foreign ministers of China, Pakistan, and Afghanistan in Kabul was a significant event in regional diplomacy. Organized by China, the meeting aimed to reduce tensions between Afghanistan and Pakistan and promote regional stability and economic cooperation, particularly through the expansion of the China-Pakistan Economic Corridor (CPEC) to Afghanistan.   The sixth trilateral meeting of the foreign ministers of Pakistan, China, and Afghanistan took place on August 20, 2025, in Kabul. This dialogue, institutionalized in 2017, aims to strengthen political trust, coordinate the fight against terrorism, and promote economic integration between the three countries. Pakistani Foreign Minister and Deputy Prime Minister Ishaq Dar, Chinese Foreign Minister Wang Yi, and Afghan Acting Foreign Minister Amir Khan Muttaqi participated in the talks.   During the meeting, the parties focused on several key aspects. First and foremost, significant progress was made in reducing tensions between Islamabad and Kabul, which had previously faced an increase in militant attacks in Pakistan. China acted as a mediator in this process, hosting an informal meeting in Beijing, which led to improved relations and an agreement to upgrade diplomatic ties to embassy level.   A key economic achievement of the meeting was an agreement to extend the China-Pakistan Economic Corridor (CPEC) to Afghanistan. CPEC is a multi-billion dollar project aimed at connecting China and Pakistan through a network of roads, railways, and energy pipelines. The expansion of the CPEC to Afghanistan is seen as an important step in stimulating trade, transit, and development in the region. The parties also reaffirmed their commitment to deepening cooperation in trade, transit, regional development, health, education, culture, and the fight against drug trafficking.   In the context of regional integration, it is worth noting that Pakistan and Afghanistan previously (in May) agreed on a joint feasibility study for the Uzbekistan-Afghanistan-Pakistan (UAP) railway project. This project aims to improve regional connectivity with Central Asia, and Ishaq Dar's visit to Kabul a month before the trilateral meeting was related to the signing of a framework agreement on this project.   Thus, the meeting underscored the three countries’ commitment to regional stability, economic development, and joint efforts to combat terrorism, with the expansion of the CPEC to Afghanistan becoming a central element in achieving these goals.   At the same time, the expansion of the CPEC to Afghanistan also has significant implications for Uzbekistan and its relations with Afghanistan. As a landlocked country, Uzbekistan is actively seeking to expand its trade routes and access to seaports. Afghanistan has historically been an important transit corridor for Uzbekistan, connecting it with South Asia and the Middle East.   Afghanistan's accession to the CPEC could provide Uzbekistan with new, more efficient and secure trade routes through Afghanistan and Pakistan to ports on the Arabian Sea, such as Gwadar. This would reduce Uzbekistan's dependence on existing routes and open up new opportunities for exports and imports. The CPEC project, which includes the development of infrastructure such as roads and railways, will contribute to overall regional connectivity, which is in line with Uzbekistan’s long-term goals of integrating into regional economic processes and creating transport corridors connecting Central Asia with South Asia.   The aforementioned Uzbekistan-Afghanistan-Pakistan (UAP) railway project is a direct testament to Uzbekistan's desire to deepen ties through Afghanistan. The expansion of the CPEC to Afghanistan could complement and accelerate the implementation of this project, creating synergies for the development of transport infrastructure in the region. The Termez-Mazar-Sharif-Kabul-Peshawar railway, which is part of this project, will significantly reduce the time and cost of freight delivery.   Economic stabilization and development in Afghanistan, stimulated by investments under the CPEC, will create new economic opportunities for the parties. This may include increased bilateral trade, joint investment projects, and the development of border infrastructure.   The impact on Uzbek-Afghan relations will be multifaceted. The expansion of the CPEC and joint infrastructure projects, such as the UAP railway, will inevitably lead to deeper cooperation between Uzbekistan and Afghanistan. This will contribute to strengthening political dialogue, exchanging experiences, and jointly addressing regional issues. The economic stabilization of Afghanistan through the CPEC may also contribute to overall security in the region, which is a priority for Uzbekistan. A stable and prosperous Afghanistan reduces the risks associated with cross-border crime, extremism, and drug trafficking, which directly affect Uzbekistan's security. In addition, improved transport connectivity and economic development can help strengthen humanitarian and cultural ties between the two countries, given the presence of a significant Uzbek diaspora in northern Afghanistan.   Thus, the Sixth Trilateral Meeting of Foreign Ministers of China, Pakistan, and Afghanistan is an important step towards strengthening regional stability and economic cooperation. The expansion of the CPEC to Afghanistan and the development of the UAP railway project open up new opportunities for all participants, including Uzbekistan. These initiatives not only promote economic development and integration, but also strengthen security and stability in the region, which is a key factor for long-term prosperity. Uzbek-Afghan relations, in turn, will receive a new impetus for development based on common economic interests and the desire for regional stability.   * 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.