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The contract between the Republic of Kazakhstan and the Republic of Uzbekistan on deepening of economic cooperation for 1998-2005

of October 31, 1998

The Republic of Kazakhstan and the Republic of Uzbekistan which are referred to as further the Party

being guided by the Contract on eternal friendship between the Republic of Kazakhstan and the Republic of Uzbekistan of October 31, 1998, the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan on measures of deepening of economic integration for 1994-2000 of July 28, 1993, the Contract between the Republic of Kazakhstan and the Republic of Uzbekistan on creation of the Common economic space of January 10, 1994, the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan on free trade of June 2, 1997, and also other international treaties which participants are the Parties,

recognizing that economic cooperation is directed, first of all, to increase in level of living and requirements satisfaction of the population of two states, realizing benefits of the international labor division, specialization and cooperation of production, mutually advantageous trade to goal achievement of their social and economic development,

proceeding from need of further strengthening and development equal and mutually advantageous trade and economic and relations of production, giving to them of long-term and steady nature, effective use of economic capacity of two states and growth in prosperity of their people,

confirming need of mutually advantageous use of potential and intellectual potential of the states and aiming at further deepening of full cooperation,

attaching importance to implementation of economic reforms, creation of conditions for phased transition to free movement of goods, services, the capitals and labor power,

being guided by the universally recognized norms and the principles of international law,

agreed as follows.

Article 1

The parties enable program implementation of economic cooperation between the Republic of Kazakhstan and the Republic of Uzbekistan for 1998-2005 (further - the Program) which is integral part of this Agreement.

Article 2

Economic cooperation of the Parties is performed on the principles of the long-term partnership and free trade regime which is equitable to strategic interests of both states by interaction between regions, business entities, irrespective of their patterns of ownership, according to the universally recognized norms of international law and the national legal system.

Article 3

The parties, recognizing need of mutually beneficial cooperation and step-by-step forming and development of the Common Economic Space within the CIS, create favorable conditions for rapprochement of regulatory framework in the field of foreign economic activity, trade and economic relations, taxation, customs and tariff system, the antimonopoly policy and consumer protection, forming of separate projects and programs, rendering assistance to development of mutually advantageous commercial and scientific and technical ties between business entities, activation of mutual activities of national and foreign investors in the territory of both states.

The parties abstain from the actions causing damage to interests of economy of each other.

Article 4


jointly develop and perform system of measures of support and protection of the national producers occupied with coproduction;

encourage formation of transnational associations, financial and industrial groups, holdings, joint businesses on production of the equipment of new generation on the basis of profound cooperation of production;

recognize mutual interest in strengthening of mutually advantageous bonds between the companies of key branches of the industry and agrarian and industrial complexes;

encourage opening of trading houses, representations.

Article 5

The parties create favorable conditions for encouragement and mutual protection of investments, support of entrepreneurship on interaction in the security market, to development of stock exchange trading.

Article 6

The parties on mutually advantageous basis provide interaction in carrying out basic and applied scientific research within the international projects, including the organization of joint scientific operations for problems, of common interest.

Article 7

The parties continue cooperation in the field of transport and communication, create favorable conditions for transit through the territories.

Article 8

The parties charge to the governments, the Joint intergovernmental commission on bilateral cooperation between the Republic of Kazakhstan and the Republic of Uzbekistan coordination of accomplishment of the Program, control of the course of its realization and, in case of need, development of offers on introduction of changes in it.

Article 9

The Parties will resolve the disagreements arising in case of interpretation of provisions of this agreement by negotiations and consultations.

By mutual consent of the Parties changes and additions which are drawn up by the separate protocols which are integral part of this Agreement can be made to this Agreement.

Article 10

This Agreement does not affect the rights and obligations of the Parties following from other international treaties which participants they are.

Article 11

This Agreement becomes effective from the date of the last written notice of accomplishment of the interstate procedures by the Parties necessary for its entry into force and is effective till December 31, 2005.

Each of the Parties can terminate this Agreement by the written notice of other Party. In this case this Agreement stops the action in six months from the date of receipt of such notification.

Cancellation of this Agreement does not affect implementation of the projects which became effective during validity.

It is made in the city of Tashkent on October 31, 1998 in duplicate, everyone in the Kazakh, Uzbek and Russian languages, and all texts are equally authoritative. For the purposes of interpretation of provisions of this agreement of the Party use the text in Russian.


For the Republic of Kazakhstan 

For the Republic of Uzbekistan


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