The administrations of Uzbekistan’s Tashkent Region and Kazakhstan’s South Kazakhstan Region (SKR) have signed a protocol on cooperation that regulates the expansion of cooperation" aimed at creating favourable conditions for businessmen and information exchange on companies that need investment, including on investment projects in the territories of both states," Regnum news agency reported.

The sides agreed to step up cross-border trade, and they also agreed on issues of regular supplies of Uzbek agricultural products and products of mechanical engineering and chemical industry. In addition to this, the Kazakh side is interested in investing into the Uzbek economy, specifically into the sector of tourism and services, setting up joint ventures to process flour and cereals products, food industry, opening trade houses and construction of border terminals.

"We have found common ground and specified areas in business and trade, where joint projects can be implemented," the administration quoted Governor of South Kazakhstan Region Umirzak Shukeyev as saying.

A business forum was held in Tashkent as part of the Kazakh guests’ visit, where representatives of the Uzbek State Committee for the Management of State Property [and Support of Entrepreneurship] briefed them on distinctive features of the investment climate and conditions for foreign partners’ participation in investing into the Uzbek economy.

In 2006, trade between the two states increased by 36.2% to US$704 million compared with 2005. Kazakhstan holds the third place in Uzbekistan’s foreign trade with the CIS states.