Tashkent, Uzbekistan (UzDaily.com) -- Kazakhstan will soon begin construction of the International Center for Trade and Economic Cooperation "Central Asia" (ICTEC) on the border with Uzbekistan. Minister of Trade and Integration Bakhyt Sultanov announced this, LS reports.

On his Facebook page, he noted that the agreement has existed for two years.

“One of these days we will begin the implementation of a major trade project in the southern direction - the construction of the International Center for Trade and Economic Cooperation“ Central Asia ”on the border with Uzbekistan. There was an agreement on this at the level of the heads of state two years ago,” Sultanov said.

According to the minister of ICTEC, this is an important element of trade cooperation in the Central Asian region.

“There will be created not only objects of wholesale and retail trade and adjacent infrastructure, but also an important transport and logistics center. In the context of economic instability in the world, falling prices, threats to international trade from the coronavirus, decreasing tourism, intensifying trade with neighbors is the best way to cope with the crisis together,” the Kazakh official said about the benefits.

He added that the population of Central Asia exceeds 71 million. The countries of the region are actively cooperating with each other.

“Our mutual trade turnover only in goods with Central Asian countries at the end of 2019 made up US$5.1 billion. Uzbekistan is the largest trade partner in the region, which accounts for more than 60% of Kazakhstan’s mutual trade with the region. The outstripping growth rate of mutual trade and services has been continuing since 2017 and is on average 30.7%. And as mentioned earlier, mutual trade, having passed the four billion mark in the past year, is easily approaching five, which already makes it possible to set more ambitious tasks of doubling the total volume of exchanged goods, works and services. Therefore, the creation of ICTPP will allow us to further strengthen the economic cooperation of our countries and will become one of the anchor projects of the South-North, North-South corridor. It will become part of a large product pipeline from the region to other countries,” Sultanov said.

The minister specified that work is underway in Kazakhstan to create a commodity distribution system, which includes a network of wholesale distribution and agro-logistics centers. A similar infrastructure is being created with the support of the Asian Development Bank in neighboring Uzbekistan and Kyrgyzstan.

“The implementation of the ICTEC project will not only open the gates to the south for Kazakhstan, but will allow our states to build a single mechanism for joint export of goods to third countries, primarily to Russia, Europe and China. There are two largest agglomerations near the center - Shymkent and Tashkent. In the immediate vicinity there are large and well-developed infrastructural nodes - the Saryagash railway station, the Zhibek Zholy international checkpoint, the Western Europe - Western China highway,” he listed the advantages and added that the center would create a single pool of agricultural producers and ensure stable export supplies of high-quality food.

Earlier, it was reported that Kazakhstan and Uzbekistan will have their own "Khorgos".