Uzbekistan and the European Union to sign EPCA: What it means?

Distances between Europe and Central Asia have been closing in a positive sense in recent years. Uzbekistan, in particular, with its active diplomacy and open economic policy, is becoming an increasingly important partner for the European Union. Europe views Uzbekistan, which holds the status of a "gateway to the region," as the "Heart of Central Asia."

The first-ever European Union–Central Asia Summit, held in Samarkand in the spring of 2025, became a symbol of this rapprochement. European Commission President Ursula von der Leyen and European Council President António Costa jointly attended the summit and announced the $12 billion "Global Gateway" investment program. This was not merely an economic agreement; it initiated a new era of strategic relations between Europe and Central Asia, based on mutual trust and shared interests.

Attention is now focused on the "Enhanced Partnership and Cooperation Agreement" (EPCA), which is expected to be signed in Brussels on October 24. This document is anticipated to mark a turning point in bilateral relations, elevating the political, economic, and civilizational ties between Uzbekistan and the European Union to a new level.

Current state of economic cooperation

Trade and investment relations between Uzbekistan and the European Union have accelerated significantly in recent years. From 2017 to 2024, Uzbekistan's trade turnover with the EU increased by 2.4 times, reaching approximately $6.4 billion in 2024. Imports totaled about $4.7 billion, consisting mainly of machinery, equipment, medical, and other chemical products from Germany, France, and other EU countries. In 2024, the volume of direct investments and credits received by Uzbekistan from EU states amounted to $4.1 billion, a 77 percent increase compared to 2023. The main share of capital invested by European entrepreneurs comes from countries such as Germany and the Netherlands. Currently, over 900–1,000 joint ventures with European capital operate in Uzbekistan, with the total portfolio of investment projects reaching tens of billions of euros. Official sources state this volume is around €30–40 billion.

Furthermore, the utilization of Uzbekistan’s rich natural resources is a key topic within the framework of new cooperation projects. A memorandum of cooperation on critical raw materials, for example, was signed with the European Union on April 5, 2024, as these minerals are essential for renewable energy and digital technologies. In turn, Uzbekistan is expanding the range of products destined for European markets. Thanks to Uzbekistan's admission into the EU's GSP+ preference scheme in 2021, the country gained customs benefits for over 6,200 types of goods. For context, the GSP+ preference scheme is an EU trade incentive program that allows developing countries to export goods to the EU market duty-free or under preferential conditions. Leveraging this opportunity has increased the volume of Uzbek products exported to the European Union. In 2024, the main portion of exports to the EU consisted of chemical products, including a significant amount of uranium minerals directed to European countries. Thus, in recent years, trade and economic ties between Uzbekistan and the EU have grown rapidly, and both sides are working to strengthen mutual economic integration.

Enhanced Partnership and Cooperation Agreement (EPCA)

At a time when the proximity between Tashkent and Brussels is accelerating, the next major development to solidify Uzbekistan–EU relations—the "Enhanced Partnership and Cooperation Agreement" (EPCA)—is on the verge of being signed. President of Uzbekistan Shavkat Mirziyoyev is expected to sign the agreement during his official visit to Brussels tomorrow, October 24. The EPCA is a document that will further deepen the strategic partnership, covering five main areas of cooperation: political dialogue, trade and economy, security, sustainable development, and various sectoral collaborations. The agreement will supersede the previous Partnership and Cooperation Agreement signed in 1996, at the end of the last century.

According to a statement by the Ministry of Foreign Affairs of Uzbekistan, the EPCA is a "historic stage in relations with the European Union," reflecting the significant political, economic, and institutional changes achieved by the country. With the adoption of the agreement, both sides are expected to introduce an expanded trade regime based on mutual trust and strengthen the integration of investments and markets. From the European Union’s perspective, the EPCA will provide European businesses with an opportunity to connect with the growing market in Central Asia, further boosting mutual trade and investments. For example, within the framework of the agreement, Uzbekistan will facilitate the export of its products by supporting existing cooperation under the GSP+ regime and market access privileges to the EU. In general, the signing of the EPCA will fundamentally expand mutual relations and serve to strengthen the political and economic bridge.

"Global Gateway" program and investments

The European Union's external investment program, "Global Gateway," is also financing a number of projects in Uzbekistan. Within the framework of cooperation for 2021–2027, the European Union has allocated a total of €119 million in grant funds for Uzbekistan. This is part of the Global Europe financial instrument, the EU's official program implemented between 2021 and 2027. This grant is part of an initiative created by the EU to finance cooperation with various countries worldwide, including Uzbekistan.

"Global Gateway" investments also play a significant role in the transport sector. At the EU–Central Asia Summit this year, an international investment package of €10 billion for transport and logistics infrastructure was announced. The majority of these funds will be directed toward improving the Trans-Caspian Corridor. The European Union is working with Uzbekistan, Kazakhstan, and other regional states to strengthen the Trans-Caspian rail and sea transport. Additionally, environmental projects, such as improving water supply in the Aral Sea region and enhancing nuclear energy safety, are also being implemented with the assistance of the EU and international financial institutions.

Cooperation is also expanding in the fields of energy and eco-initiatives. The European Union is keen to support Uzbekistan's transition to clean energy, expanding opportunities for solar energy and green hydrogen projects. Projects for the construction of solar and wind power plants in the country are financed within the framework of investment programs from Far Eastern states and European Union banks.

Furthermore, major international financial institutions such as the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) are providing loans for a number of projects in Uzbekistan related to highways, railways, water supply, and agriculture. In the digital infrastructure sector, the European Union is financially and technically supporting Uzbekistan's e-government (e-hokimiyat), national database integration, and digitalization projects for small and medium-sized businesses.

Central Asia strategy and Uzbekistan's role

Uzbekistan serves as a critically important bridge to Europe in the Central Asian region. Uzbekistan’s unparalleled role in regional relations was repeatedly emphasized during the summits. At the first EU–Central Asia Summit in Samarkand in April 2025, President Mirziyoyev presented a number of initiatives on behalf of Uzbekistan to deepen this cooperation. Specifically, initiatives such as a multilateral investment protection treaty to guarantee investment flows to European markets, an EU–Central Asia Trade Association, and a regional program to support women entrepreneurs were put forward. EU leaders also referred to Uzbekistan as "our ally" in the "Global Gateway" plans. Ursula von der Leyen, in particular, emphasized in Samarkand: "Uzbekistan occupies a very important place in the 'Global Gateway.' This is a new stage of our long-term friendship."

Regarding transport corridors, Trans-Caspian integration remains one of the main priorities. The European Union is cooperating with Uzbekistan and other Central Asian countries to modernize the Trans-Caspian route. In particular, programs aimed at increasing the volume of goods exchanged with Europe through this corridor are being developed. With €10 billion being directed toward transport and logistics infrastructure this year, Uzbekistan is taking measures to further facilitate access to the West, especially European markets, via the Trans-Caspian route.

Afghanistan issue and regional security

Regional security and stability are important areas of cooperation between Uzbekistan and the European Union. European leaders highly value Uzbekistan’s role in ensuring the stability and security of Afghanistan. Practically, the EU is strengthening cooperation with Uzbekistan on migration and border management. Specifically, the first Migrant Resource Centre (MRC) was opened in Tashkent within the framework of the EU-funded "PROTECT" project. This center provides free information to Afghan and other regional migrants about legal migration pathways, security aspects of labor migration, and the dangers of irregular migration and human trafficking.

Additionally, through The Border Management Programme in Central Asia (BOMCA), cooperation is being expanded across Central Asian states, particularly Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan, in areas such as border management, migration, trade routes, and other international initiatives to combat drug and arms trafficking and enhance border protection.

Furthermore, many European Union states, especially Germany, faced significant challenges in the field of migration after the government change in Afghanistan. Reports have frequently surfaced recently that Europeans, forced to accept tens of thousands of Afghan refugees, have been attempting to use Uzbekistan as a transit country for their return. Specifically, foreign publications frequently reported in 2024 that Germany might seek Uzbekistan's assistance in returning Afghan refugees in exchange for recruiting labor. During former Chancellor Olaf Scholz’s visit to Uzbekistan last September, an agreement was reached to provide jobs for hundreds of doctors in Germany. However, official information on whether the issue of returning Afghan refugees via Uzbekistan was also raised at that time has not been confirmed.

                                            Bekzod Polatov