BAKU, Azerbaijan, November 14. Uzbekistan's integration into the Middle Corridor could improve the country's ability to trade with distant end markets in Europe and East Asia, Felix Chang, a Senior Fellow at the US Foreign Policy Research Institute’s Asia Program, told Trend.
The expert noted that, whether Uzbekistan’s potential within the Middle Corridor is realized or not is dependent upon many factors beyond the construction of the physical infrastructure.
"Among those factors is the level of demand for goods that either originate from or transit through Uzbekistan's portion of the Middle Corridor. What makes it trickier for Uzbekistan is that its portion of the Middle Corridor will have to compete for China-Europe and Europe-China transit cargo with the parallel portion of the Middle Corridor that transits through Kazakhstan," he explained.
Further speaking, Chang said that if the new route is successful, Uzbekistan's integration into the Middle Corridor could help the country develop economically.
"Over the last half decade or more, Uzbekistan has laid the foundation for such an integration to be successful. Namely, in 2017, Uzbekistan allowed its currency to freely float. Then in 2019, the country removed its capital controls that limited the flow of foreign capital in and out of the domestic economy, as well as supported tax and regulatory reform to further the economic competitiveness," he added.
The analyst stressed that both of these decisions were aimed at facilitating trade and encouraging foreign investment into Uzbekistan.
The Middle Corridor, a transportation and trade pathway, links Asia and Europe as it traverses numerous countries within the region. It provides an alternative to the conventional Northern and Southern Corridors.
Beginning in China, it spans across Central Asian nations like Kazakhstan, Uzbekistan, and Turkmenistan. Subsequently, it extends through the Caspian Sea, Azerbaijan, Georgia, and Türkiye before reaching the European continent.
This strategic Middle Corridor offers a land-based connection between the eastern regions of Asia, including China, and Europe, offering a shorter path compared to lengthy maritime routes.