DEVELOPMENT OF TRANSBOUNDARY TRADE AND ECONOMIC RELATIONS IN CENTRAL ASIA: CHALLENGES AND SOLUTIONS

1 Lecturer at the Tashkent State Institute of Oriental Studies, PhD ABSTRACT: This article will cover a wide range of key issues in the economies of the Central Asian countries, the extent of their development and opportunities for trade and economic relations.The aim of the study is to analyze trends and opportunities for improving trade and economic relations between the countries of Central Asia. The objectives of the study are: to analyze the volume and tendency of GDP of Central Asian countries for 20002018; analysis of the GDP per capita in the countries of Central Asia; Comparative analysis of export and import volume, structure of export and import of Central Asian countries; to study the relations of Central Asian countries with international organizations and to find mutual interests; Identification of political, economic and social problems that impede the development of trade and economic relations in Central Asian countries. The results are as follows: the main focus of improving trade and economic relations between the countries of Central Asia on the border of two or more countries is the Free Economic Zone; Diversification of the economies of Uzbekistan and Kazakhstan in relation to other countries in the region can be a key factor in the development of trade and economic relations; Expanding the role of regional organizations and integration in improving trade and economic relations between Central Asian countries. The practical result of the establishment of transboundary free economic zones in Central Asia.


INTRODUCTION
In the context of globalization, trade and economic cooperation between countries is an important factor in enhancing competitiveness. Central Asia is a region of economic and resource potential on the Asian continent, which includes Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan, which emerged as independent states on the world political map after 1991. Development of trade and economic relations between countries with different economic development, although these countries are historically close to each other, but are not well-established trade and economic relations, and economically unrelated, the high share of non-CIS countries in the economies of the region. the second part of the problem. structure of exports and imports of Central Asian countries. The comparative analysis shows the relative importance of Kazakhstan and Uzbekistan in economic growth through the above-mentioned macroeconomic indicators. Through monitoring, the trends in political, trade and economic relations between Central Asian countries were studied. The method of analysis and synthesis has been used to study and re-summarize the indicators that represent the economies of Central Asia.

LEVEL OF STUDY
The trade and economic cooperation of Central Asian countries has been well studied by the region's scientists and other major foreign scientists.
The research by Uuriintuya Batsaikhan and Marek Dombrowski analyzes the history, geography and politics of Central Asian countries, their trade and economic integration, the country's reforms and socio-economic indicators.
The analysis shows that, despite the fact that Central Asian countries are rich in natural resources, they still represent the remnants of the socialist regime in economic and political terms.
The article is comprehensive and shows the political and economic situation in Central Asia. Analyzes the relationship of the countries of the region with international organizations and other countries, but does not focus on the trade and economic cooperation between Central Asian countries and their prospects. (Uuriintuya Batsaikhan, Marek Dabrowski, 2017) In a study by Liu Jiangsu (Liu, 2019). It is about energy diplomacy in Central Asia. The use of external energy markets through international investment has become an important strategy to address energy risks and optimize energy distribution. With its significant geographical location and diverse resources, Central Asia has attracted the attention of the international community and has become a place for foreign investment. However, the risk of corruption is a major concern for foreign investors, especially in the energy sector. As a respondent, the share of corruption in international investment arbitration with five Central Asian countries is up to 75% in the energy sector. In these situations, choosing Central Asia as a place to invest is a decision made after considering both opportunities and risks for resource-intensive investments. Against this background, the document is intended to exert political influence on governments, policy makers and foreign investors. It is proposed to amend the bilateral investment agreements, establish a legal framework for the countries of Central Asia, take measures to encourage investment, strengthen the system of self-defense and self-defense of investors, and strengthen the system of investment guarantees. . This conclusion drawn by Chinese scientists can be seen in the work of many other scholars. Cooperation of the countries of the region, not only in the energy sector, but also in many other areas, including trade, economic, transit, customs and border taxes, is one of the major challenges facing Central Asian countries in the 21st century.
The volatility of exchange rates is closely linked to capital market prices and also affects the volume of import-export and foreign investments in the real economy. Research by Xuping Ma, Jun Wang, Xiaolei Sun (Ma, Wang, Sun, 2018) Risk of changes in exchange rates between multiple cross-country countries using a VAR index-based approach learned.
It is argued that domestic interactions in the Central Asian foreign exchange markets are weak, and that the currency of Kyrgyzstan plays an important role throughout the region. Kyrgyzstan also has a World Trade Organization. But regional countries such as Kazakhstan and Uzbekistan do not take into consideration the role played by foreign trade. One of the main factors of economic growth was the increase in the share of foreign investment in the economy of Turkmenistan and Uzbekistan and the significant expansion of strategic goals and objectives.
The GDP per capita is one of the key indicators of the HDI and is one of the most important indicators of living standards, welfare and living standards.
In terms of GDP per capita in Central Asia (Table 2), Kazakhstan was the leader in both 2000 and 2018, at $ 9,812. In Turkmenistan this figure was US $ 6,967, while Uzbekistan's GDP per capita in 2018 was US $ 1,532.
Although Kyrgyzstan and Tajikistan have a tendency for growth, they are less than other countries in the region.  Kyrgyzstan has a negative balance in 2010-2018, which can be seen as the impact of WTO accession to foreign trade.
Tajikistan's foreign trade since 2005 has a negative balance, which may be explained by the fact that oil and gas, as well as other resources, flour and wheat have a significant share in the country's imports.
After 2016, the foreign trade balance of Uzbekistan will show a negative balance. The main reason for this is liberalization of foreign economic relations of the country.
Despite the fact that the Central Asian countries have the same export and import structure, in the post-2016 period we can see the increase in trade between the countries of Central Asia and their share in the total turnover. This is a positive trend, of course, and will increase integration opportunities during globalization.
Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan are among the top 20 trade partners of Uzbekistan and exported goods worth $ 10 billion 800 million in January-July 2019 (Aniq.uz, 2019). Tajikistan exported 1.6% of its products.
Uzbekistan is one of the 10 largest partners of Kazakhstan, with wheat, fruit and vegetables, gas and semi-factories dominating the trade turnover between the two countries. If Uzbekistan prevails in the trade with Kyrgyzstan and Tajikistan, the statistics with Kazakhstan and Turkmenistan will show. Uzbekistan imports oil and semi-oil products from Kazakhstan and Turkmenistan, and exports its gas to Kyrgyzstan and Tajikistan.
Kazakhstan, Uzbekistan and Tajikistan are among the 10 largest trade partners of Kyrgyzstan. Two of Tajikistan's five major partners are Central Asian countries -Kazakhstan and Uzbekistan, while Kazakhstan exports flour and wheat to Tajikistan, while Uzbekistan and Tajikistan occupy a high share of automobiles and aluminum.  All five countries are also members of the United Nations and a member of UNCTAD, which conducts advisory conferences on trade and economic relations.
The World Trade Organization is the legal and institutional basis of the multilateral trade system. It sets out the principles of contractual obligation to governments to determine how to develop and implement domestic trade laws and regulations (DR. GEORGE).
In Central Asia, Kazakhstan, Kyrgyzstan and Tajikistan are equal members of this organization and have an open trade relationship with 164 countries. However, Turkmenistan is not a member of the organization, but Uzbekistan has observer status and is investigating the possibility of joining the WTO.
Membership in the WTO not only enables trade relations with the WTO member countries, but also requires that the domestic market comply with international standards and WTO standards. Some countries meet the requirements of agriculture, industry, trade and customs policies within 1-5 years with WTO requirements, and some others are less than 10-25 years. Compliance with WTO requirements depends on the country's participation in the international division of labor, internal and external competitiveness of the economy.
The Commonwealth of Independent States is a comprehensive organization that combines economic, social and political cooperation. There are 2 economic integration activities within the organization. One of them is the CIS Free Trade Zone, established in 2011. Kazakhstan, Kyrgyzstan and Tajikistan are equal members of this integration, while Uzbekistan is a member state and Turkmenistan is not a member of this integration.
The Eurasian Economic Community is a regional economic integration established in 2014 and will operate from January 1, 2018, according to the Customs Union. Kazakhstan and Kyrgyzstan are equal members of this integration.

Trade turnover between Uzbekistan and Kazakhstan is the largest among Central Asian countries and amounts to almost US $ 2 billion.
Overall, trade between the two countries in 2018 was $ 2.5 billion, or 25.3 percent higher than 2017, including $ 1.6 billion in exports, 31.6 percent and imports 0.8 percent. billion and increased by 14.8%.
The bulk of exports (38.7%) was for animal and vegetable products, food products ($ 635.4 million in 2018, $ 473.9 million in 2017). The increase was 34.1%.
The exports also accounted for 22.5% of the mineral products, which amounted to $ 369.1 million in 2018 ($ 335.7 million in 2017), an increase of 10%.
The volume of trade between Uzbekistan and Kyrgyzstan is also US $ 75 million (2018). However, the trade volume between Kazakhstan and Kyrgyzstan and Tajikistan also exceeds $ 750 million, which indicates the development of trade and economic relations between the countries of Central Asia.
These positive indicators were the establishment of joint ventures in Central Asia with the participation of Central Asian countries.
In 2017, 50 companies with Uzbek capital and 16 enterprises with Tajik capital were operating in Kyrgyzstan, and 49 companies with Kyrgyz capital in Uzbekistan (Sultanova, 2019). Cooperation between industrial enterprises of Uzbekistan and Kyrgyzstan is mainly concentrated in the field of textile and construction materials production. Specifically, in April 2018, Signature Uzbek-Kyrgyz JV was launched in Osh to produce metal windows and doors. The business circles of the two countries plan to establish industrial cooperation in the textile and clothing industry, including joint production and export of finished products to the markets of third countries. Given the status of Kyrgyzstan's VSP + universal system of privileges, it gives Kyrgyz producers the right to export up to 6,000 goods to Europe at zero rates, while the joint production and export of finished products through Kyrgyzstan facilitates Uzbek producers' access to European markets.
In 2017, Uzbek investors invested $ 5.4 million into the Tajik economy. The investments are directed at the development of agriculture, poultry and horticulture. There are 9 enterprises with Uzbek capital in Tajikistan, and 25 enterprises with Tajik capital in Uzbekistan (Vokhidova and others, 2019), which deal with light industry, food, construction materials, fruit and vegetable processing. Six trading houses of Uzbekistan were opened in Tajikistan in 2017, and from February 2018 Tajikistan Trade House started operating in Tashkent. The Uzbek-Tajik Business Council was established to promote the development of relations between economic entities of Uzbekistan and Tajikistan.
In early 2019, two more Uzbek-Tajik joint ventures were established. In particular, in Dushanbe Artel founded a joint venture Artel Avesto Electronics, whose main activity is the production of home appliances under the Artel brand. Uzagrotechsanoatholding and Orien Invest have established a joint venture for the production of agricultural machinery in Tajikistan, Orien Uzagro. The company produces a variety of tractors, including loading and transportation equipment, special equipment. Currently, the Tajik Aluminum Company (TALCO) operates an Uzbek-Tajik enterprise, TALCO-CRANTAS, which specializes in joint construction and installation of special utility and construction vehicles.
The region has political problems that impede the development of economic and trade relations, and without it the countries of the region cannot improve trade and economic relations. Including: 1. Unresolved problems of enclave territories in Central Asia One of the central problems in Central Asian countries is the transhumance of the enclaves and the inhabitants.
The Sarvan-Sarwak enclave, legally subordinated to Tajikistan: Originally, these lands were Uzbeks, which were leased to Tajikistan, where Uzbeks lived. The Tajik Soh enclave has been handed over to them by Sarvan and will be decided on its own.
The enclaves of Soh and Vorukh are home to about 100,000 Tajiks living in Kyrgyzstan. Tajikistan and Tajikistan and Tajikistan can carry out population exchange. Half of Tajikistan's mountainous Badakhshan province, Karagul, is home to Kyrgyzs, the same as the number of Tajiks living in Tajikistan.
In this way, the problems of the enclave between Kyrgyzstan and Tajikistan will be solved. On August 14, 2018, it was decided that the Barak enclave of Kyrgyzstan will be located on the territory of Uzbekistan and given to the government of Uzbekistan.
In return, Kyrgyzstan will receive a section of Uzbekistan's border area. In other words, the border will be slightly altered, but the land belonging to another country will be lost within Uzbekistan. However, the final solution to the problem of the Central Asian enclaves is long overdue. The presence of enclaves is one of the main reasons for the ongoing difficulties of border demarcation and local border conflicts.
There are four enclaves in Uzbekistan: two small, one large and one non-category -Sarvak. The smaller enclaves Arnasai and Barak belong to Kazakhstan and Kyrgyzstan, respectively. The problem with Arnassay has long been resolved, and the authorities have announced that the Barak problem will be resolved soon.
The final, fourth enclave in Uzbekistan belongs to Tajikistan. It is the territory of Sarvak or Sarvan and was transferred to Tashkent in 1935 by the neighboring republic. The lease was then extended on a regular basis. The last lease was extended until 1990. Nevertheless, in 1991 the land was given to Tajikistan. It is interesting that some of Sarvak's population are ethnic Uzbeks and some of them have Tajik citizenship.
There are four enclaves in Uzbekistan, all located in Kyrgyzstan. The largest of them is Soh, with a population of about 74,000. Administratively, the enclave is Soh district of Fergana region.
Relations between Soh residents and border guards remain tense, and open conflicts sometimes occur. The possibility of creating a special corridor from Soha to Uzbekistan in 2001 was discussed, but these plans were never implemented. However, because of the large enclave, his life cannot be extinguished. On the contrary, the population of the enclave is increasing. And this creates a new problem: people are crowded in a limited area.
The second largest Uzbek enclave in Kyrgyzstan is Shahimar, which, according to various estimates, has between five and ten thousand people.
The other two Uzbek enclaves are classified as small. The Chon-Gara enclave, the Northern Soh, is part of the Rishtan region of the Ferghana region of Uzbekistan.
The solution of the problem of regional enclaves plays an important role in the development of cross-border trade.
2. Transboundary rivers The two transboundary rivers of Central Asia -the Amu Darya and the Syr Darya -have long since served the hydrological, social and economic development of the peoples of the region. Therefore, effective and rational approach, responsible attitude and joint efforts are required in the context of regional cooperation in water resource management and conservation.
In addition, the creation of a "transit" logistics center in Uzbekistan, which will create a transit and transit zone, will allow safe and fast transportation of goods through the transit area, and the establishment of warehouses and wholesale stores will work in these free trade zones. It allows you to organize Given the fact that Kazakhstan produces 1.82% of world oil, the possibility of increasing oil exports to Uzbekistan within the FEZ will also increase.
Another important aspect of the FEZ is the fact that consumer goods prices in Uzbekistan are lower than those of Kazakhstan and China, including food differences, suggesting that imports of foodstuffs (rice, eggs, meat) from Uzbekistan to Kazakhstan are cheaper than Chinese products.
It is desirable to establish one of such regions in Samarkand region of Uzbekistan and Soghd region of Tajikistan. In other words, Urgut and Panjakent districts are selected as transboundary. The positive side of the issue is the fact that Uzbekistan's FEZ "Urgut" is located in the region and has experience in creating a free economic zone, which is a problematic aspect of the fact that these adjacent territories are located in the mountainous area and the main vehicle is the vehicle. If Urgut-Panjakent cross-border FEZ is to be established, it is advisable to conclude agreements after developing transport and production infrastructure in the region.
Another important alternative is the establishment of a transboundary EEU in the border areas of Uzbekistan in Andijan and in the Osh region of the Kyrgyz Republic. Andijan region has the following transport infrastructure: -The length of automobile roads is almost 2.5 thousand km; -Flights from Andijan region to all CIS countries; -Availability of railways running through the region to the Andijan-Tashko'mir, Andijan-Jalalabad / Osh and other local areas.
The presence of large heavy and light industries in the Uzbek province of Andijan also facilitates the establishment of a transboundary FEZ in the region (Vokhidova and others, 2019).
However, a transboundary FEZ cannot be established until a single decision is made on the enclaves of Uzbekistan and Kyrgyzstan.
One of the border areas of Uzbekistan with Central Asian countries is the Khorezm region of Uzbekistan and Dashaguz provinces of Turkmenistan. During the visit of the President of the Republic of Uzbekistan Shavkat Mirziyoev to Turkmenistan, the governments of the border areas of the two countries, including Khorezm region and Dashoguz province of Turkmenistan, agreed on cooperation in trade, economic, cultural and humanitarian spheres. In particular, a system of participation in international fairs, exhibitions, seminars and conferences was planned to facilitate the mutually beneficial cooperation between enterprises and organizations, the establishment of joint ventures and the joint use of the tourism potential of both regions (Vokhidova, and others. 2019). In addition, Turkmenistan is a seaside country, and the establishment of a trans-border FEZ at the time of the opening of the Uzbekistan-Turkmenistan-Iran-Oman transport corridor will improve trade and economic relations between Uzbekistan and not only Turkmenistan, but also Iran and the Persian Gulf. The major partners of Uzbekistan such as China and Russia are also interested in this agreement.

CONCLUSIONS AND SUGGESTIONS
Analysts at the Canadian Center for Globalization Studies say that given the geostrategic location of Uzbekistan and its huge potential in the labor market, the reforms will make the country a locomotive of the region.
Changes in Uzbekistan's foreign policy indicate a comprehensive approach to addressing the problems that the country's president has accumulated.