WTP Report
The territory of SCO member states collectively accounts for about 27% of the world’s landmass and over 60% of Eurasia. The combined population of SCO countries exceeds 42.8% of the global population, amounting to 3.4 billion out of 8 billion people worldwide.
The SCO countries generate 23.6% of global nominal GDP and 33.8% of global GDP based on purchasing power parity (PPP). In particular, China and India rank 2nd and 7th in the world by nominal GDP ($18.75 trillion and $3.91 trillion, respectively) and 1st and 3rd by GDP at PPP ($38.15 trillion and $16.19 trillion, respectively).
SCO countries demonstrate high rates of economic growth, averaging 5.4% in 2024 compared to the global average of 3.3%. At the same time, the SCO includes economies of different sizes, with varying competitive advantages in goods and differing levels of market openness. Mutual trade shows an imbalance in favor of the largest economies, primarily China, Russia, and India.
In 2015 China, and later in 2017 Kazakhstan, proposed a step-by-step creation of an SCO free trade zone to expand mutual trade. However, given the competitive advantages of Chinese goods, the implementation of this initiative could further deepen trade imbalances for many SCO countries.
In recent years, the volume of intra-SCO trade has grown significantly. For example, in 2021 intra-SCO exports totaled $463 billion, or 10.4% of total SCO exports, and by 2024 had risen to $725 billion, or 15.3%. The recent growth of intra-SCO trade has been largely driven by Russia’s reorientation of trade away from the West toward the East, particularly China and India.
Since 2021 Russia’s exports to China have grown 1.7 times, from $78 billion to $129 billion, while China’s exports to Russia have also increased 1.7 times, from $68 billion to $116 billion. Russia’s exports to India grew 7.4 times, from $8.7 billion to $64.2 billion, while India’s exports to Russia rose from $3.3 billion to $4.9 billion. Consequently, the share of SCO countries in Russia’s total exports grew from 26.7% in 2021 to 59.6% in 2024. China’s share of exports to SCO countries also rose, from 6.8% in 2021 to 9.4% in 2024.
Other SCO members also show a high share of exports within the SCO: Belarus (58.1%), Tajikistan (52.3%), Kyrgyzstan (50.1%), Kazakhstan (37.1%), Uzbekistan (33.4%), and Iran (33%). In contrast, India and Pakistan are less dependent on SCO markets, with 5.3% and 8.8% of their exports going to SCO countries, respectively.
In total intra-SCO trade, China accounts for $336.1 billion (46.2%), Russia $258.7 billion (35.7%), Iran $34.5 billion (4.8%), Kazakhstan $30.3 billion (4.2%), Belarus $28.6 billion (3.9%), India $23.4 billion (3.2%), Uzbekistan $9.0 billion (1.2%), Pakistan $2.8 billion (0.4%), Kyrgyzstan $1.9 billion (0.3%), and Tajikistan $1.0 billion (0.1%).
Uzbekistan’s Trade with SCO Countries
SCO members, particularly Russia, China, and the Central Asian states, are among Uzbekistan’s key trade and economic partners. Between 2017 and 2024, Uzbekistan’s trade turnover with SCO countries grew 2.5 times, from $12.9 billion to $32.5 billion. Exports increased 1.6 times, from $5.8 billion to $9.0 billion, while imports grew 3.3 times, from $7.1 billion to $23.5 billion.
As a result, the share of SCO countries in Uzbekistan’s total foreign trade turnover rose to 49.4%. Their share in total exports declined to 33.4%, while in imports it rose to 60.4%. In 2024 SCO countries accounted for 33.4% of Uzbekistan’s total exports ($9.0 billion). Without gold ($7.48 billion in 2024), SCO countries’ share of Uzbekistan’s total exports would reach 46.3%.
In 2024 compared to 2023, trade turnover with SCO countries increased slightly by 0.1% to $32.5 billion. Exports decreased by 3.5% to $9.0 billion, while imports grew by 1.6% to $23.5 billion. The main partners in Uzbekistan’s trade with SCO members in 2024 were China ($12.5 billion, or 38.4%), Russia ($11.6 billion, or 35.7%), and Kazakhstan ($4.3 billion, or 13.1%). They were followed by India ($980.4 million, or 3.0%), Kyrgyzstan ($846.4 million, or 2.6%), Belarus ($714 million, or 2.2%), Tajikistan ($702.7 million, or 2.2%), Iran ($496.6 million, or 1.5%), and Pakistan ($404.5 million, or 1.2%).
SCO markets are the main consumers of Uzbekistan’s finished export products. For instance, the bulk of Uzbekistan’s fruit and vegetable exports, other food products, electrical goods, textiles, and automobiles are shipped to SCO countries. Conversely, Uzbekistan imports from SCO members products and raw materials essential for industrial production and consumer demand on the domestic market. The majority of imported metals, wood, and petroleum products come from SCO members. Moreover, more than 50% of imported machinery and equipment, including components for final goods production, are imported from SCO countries, mainly from China.
SCO members also play a key role in ensuring Uzbekistan’s food security. About 70% of Uzbekistan’s total food imports come from SCO countries, with Russia and Kazakhstan supplying the bulk of vegetable oil and grain. Uzbekistan is therefore strongly interested in the practical implementation of all agreements and arrangements within the SCO in order to maximize the economic benefits of its participation in the organization.
Programmatic Documents of the SCO
Over the period of its activity, the SCO has adopted a number of programmatic documents in the economic sphere. These documents usually outline only the directions, goals, and objectives, as well as intentions for further expansion of economic cooperation in various fields. This is largely due to the fact that, according to the provisions of the founding documents, the SCO is neither a military bloc nor an economic or customs union, nor a free trade zone. It is an international regional organization with a supreme body (the Summits of the Heads of State Council) and a working body (the Secretariat).
To promote trade and economic cooperation among SCO member states and improve the investment climate, the “Program of Multilateral Trade and Economic Cooperation of SCO Member States” was adopted in September 2003, followed by the “Plan of Measures for its Implementation” in 2004 and the “Mechanism for Implementing the Plan of Measures” in 2005. In 2008, the heads of government of SCO member states approved an updated version of the “Plan of Measures for the Implementation of the Program of Multilateral Trade and Economic Cooperation.”
The implementation mechanism provided for mutually agreed practical steps and joint projects through multilateral intergovernmental and interagency agreements, with projects to be carried out on the basis of SCO bodies’ approval. In 2005, the heads of government of SCO member states signed the Agreement “On Interbank Cooperation (Association) within the SCO” in Moscow to establish a mechanism for financing and banking support of investment projects backed by SCO governments.
To be continued
