Foreign Trade in Turkmenistan

Topics: International trade, Uzbekistan, Russia Pages: 6 (1995 words) Published: December 27, 2013
Foreign Trade
Turkmenistan Table of Contents
In the early 1990s, Turkmenistan's foreign trade remained completely under the control of the central government. During that period, the most important trading partners remained the former republics of the Soviet Union, with which the great majority of trade had been conducted during the Soviet era. Natural gas is the most profitable item available for foreign sale. Trade Structure

In controlling Turkmenistan's trade sector, the main goal of government policy is to maintain and expand foreign markets for gas, fuel products, electricity, and cotton. Just prior to independence, trade with other Soviet republics accounted for 93 percent of Turkmenistan's exports and 81 percent of its imports. In the mid-1990s, the country's main trading partners (as they were in 1990) were Russia, Kazakstan, and Uzbekistan in the CIS and Germany and countries in Eastern Europe outside the CIS (see table 20, Appendix). In 1990 nearly 27 percent of exports were mineral products, 6 percent were chemical industry products, 46 percent were some form of cotton fiber, and 17 percent were processed food products. In 1991 the largest components of Turkmenistan's imports were food (17 percent of the total), chemical products (6 percent), light industry products including textiles (22 percent), and machinery (30 percent). Among Western countries, Turkmenistan imported the most goods from Finland, France, and Italy in 1992. In 1990, the overall trade deficit was US$500 million, which declined to $US300 million in 1991. In 1991 the trade deficit constituted some 13.9 percent of the net material product (NMP--see Glossary). In 1992 the deficit with Russia, Turkmenistan's main trading partner, was about US$38 million. That year the value of exports to Russia was 52.7 percent of the value of imports from Russia, the highest percentage among Russia's CIS trading partners. However, because it exports fuel, in the mid-1990s Turkmenistan maintained a positive trade balance at world prices with the CIS as a whole, making it the only republic besides Russia to do so. In 1993 Turkmenistan's main CIS import partners were (in order of import volume) Russia, Azerbaijan, Uzbekistan, Ukraine, and Tajikistan. The main CIS customers were (in order of export volume) Ukraine, Russia, Uzbekistan, Kazakstan, and Georgia. In 1992 Turkmenistan had bilateral trade surpluses with Ukraine, Tajikistan, Uzbekistan, and Georgia. Russia continues to trade with Turkmenistan in much the same way as in the Soviet era, although by 1992 trade with the other republics was curtailed by difficulties in collecting payments and other factors. Central Asian republics traditionally traded more with Russia than with each other; the conditions of the 1990s promote even less regional trade because several of the republics specialize in similar products. For example, cotton and gas are the chief export products of both Turkmenistan and Uzbekistan. Because of its specialization in cotton and natural gas, Turkmenistan imports a large percentage of the food it consumes. In 1991 the republic imported 65 percent of its grain consumption, 45 percent of its milk and dairy products, 70 percent of its potatoes, and 100 percent of its sugar--a profile typical of the Central Asian republics. In 1991 the trade deficit was 684 million rubles in food goods, compared with a deficit of 1.25 billion rubles in non-food goods. Turkmenistan's cotton exports follow the pattern of other Central Asian republics. Governments of these countries have raised the price of cotton for trade with their Central Asian neighbors nearly to world market levels while discounting their cotton on the world market because of its relatively poor quality and less reliable delivery. Since 1991, Central Asian countries have more than doubled their exports of cotton to countries outside the CIS, accounting for 70 percent of West European cotton imports. Exports to the Far East and Mexico also...
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