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.
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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.
In 2006, the SCO Business Council was established in Shanghai as a non-governmental body bringing together prominent representatives of the business communities of SCO states, mainly through chambers of commerce and industry, with the aim of expanding economic cooperation within the organization. Its permanent Secretariat is located in Moscow. Among its tasks is to provide timely information to the business communities of member states about business opportunities and the regulatory specifics of conducting business in partner countries, thereby facilitating the attraction of private capital and foreign direct investment into processes of economic integration among SCO countries.
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In 2014, the “Agreement between the Governments of SCO Member States on the Creation of Favorable Conditions for International Road Transport” was signed, granting certain privileges to carriers of one member state when operating in the territories of other member states.
In 2015, the “SCO Development Strategy until 2025” was adopted. The section on trade and economic cooperation enumerates a range of areas for further development. The Strategy also emphasizes continued work toward the establishment of the SCO Development Bank and Development Fund (Special Account), as well as support for the active involvement of the SCO Business Council and the SCO Interbank Association in selecting and implementing projects, especially in innovative sectors of the economy.
In November 2019, a new “Program of Multilateral Trade and Economic Cooperation of SCO Member States” was adopted, again listing priority areas and objectives of cooperation in trade and investment, banking and finance, transport and logistics, industry, agriculture, energy, customs, digitalization, ICT and innovation, spatial development, tourism, and other fields. Implementation was assigned to relevant ministries, agencies, special working groups, and business entities of SCO member states, with the support of the SCO Secretariat, Business Council, and Interbank Association, through the corresponding Plan of Measures.
In 2022, ministries responsible for foreign economic activity approved the “Plan of Joint Actions to Develop Intra-Regional Trade within the SCO for 2023–2025,” which primarily envisages discussions and exchanges of experience on simplifying trade procedures, sharing information on technical regulation, sanitary and phytosanitary measures, mandatory certification lists, and other relevant updates.
In September 2022, two additional programs were adopted. The “Program to Stimulate Industrial Cooperation among the Business Communities of SCO Member States” promotes the creation of joint cooperative projects and favorable conditions for building value chains, including interaction with the SCO Business Council. The “Program of Cooperation among Authorized Bodies of SCO Member States in the Use of Renewable Energy Sources” was also approved, with implementation to be carried out through national action plans prepared by relevant ministries and agencies, alongside possible international agreements and other documents.
In October 2024, the “Concept of Developing a ‘New Economic Dialogue’ among SCO Countries” was approved. It aims to intensify trade and economic cooperation by improving the efficiency of existing mechanisms within the SCO and creating new platforms to foster mutually beneficial and sustainable ties among the business communities of SCO countries in areas of shared interest.
The SCO has also adopted a number of other programmatic documents for developing economic cooperation in different fields, all of which follow a similar structure.
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Most of the economic programs adopted within the SCO outline directions and areas of cooperation in which relevant ministries, agencies, and business entities of SCO countries may establish practical collaboration, including signing interagency agreements and implementing joint projects. However, the economic structures created under the SCO (such as the Business Council, Interbank Association, and economic forums, including regional ones) do not play a leading role in the economic processes among SCO states.
To date, the SCO Development Bank has not been established, which could have financed joint projects of SCO members. Economic cooperation among SCO countries largely develops at the bilateral level or within other organizations (such as the CIS and the EAEU), of which some SCO countries are also members. At the multilateral level within the SCO, major joint economic projects are practically absent.
Furthermore, economic cooperation among private entities of SCO member states mostly occurs through pre-established bilateral contacts and is generally unrelated to their countries’ SCO membership.
For Uzbekistan, it is important to avoid the dominance of any single major SCO economy within its national economy. In investment cooperation, it is advisable to attract investments and loans primarily for the modernization and creation of industrial production facilities, whose profitability would ensure loan repayment. At the same time, foreign investments in key and strategic sectors of the economy should not ultimately result in a complete transfer of ownership or control to foreign partners.
*The views expressed in this article are the author’s own and do not necessarily reflect the editorial policy of TDI.
Yuriy Kutbitdinov
Yuriy Kutbitdinov is associated with the Center for Economic Research and Reforms in the administration of the President of Uzbekistan.
