On 6th November, US President Donald Trump hosted the leaders of the five Central Asian nations (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan) for the 10th annual C5+1 summit at the White House. The summit resulted in several agreements across a number of priority areas, including the business environment, trade and investment, critical materials, innovation, the digital economy, as well as trans-regional connectivity. Kazakhstan, Uzbekistan and Tajikistan also signed a number of bilateral agreements with the US (and subsequently with several US companies).

Central Asia’s high expectations for the latest C5+1 summit were also underlined by legislative amendments recently introduced to the US Congress to repeal the so-called Jackson-Vanik Amendment, a Cold War-era addition to the US Trade Act, which formally restricts trade with the countries of the region. The amendments are aimed at granting Central Asian countries Permanent Normal Trade Relations (PNTR) status.

If approved by Congress and signed by President Trump, the repeal of the amendment would provide Central Asia with simplified access to the US market and the possibility of concluding bilateral investment protection agreements. An inflow of US investment and technology into the energy, logistics, agriculture and green economy sectors is also likely to follow, while the region’s status as an equal trading partner would be strengthened.

While the amendment’s repeal would open a new era in bilateral economic and trade relations, the process may be selective in nature. If only selected regional economies (such as Kazakhstan and Uzbekistan) receive PNTR status, US engagement with the region would become more differentiated, and Central Asian states would compete for Washington’s attention and resources. Furthermore, the repeal may trigger a negative reaction from Russia and China, whose leaders could view this step as an attempt to weaken their influence in the region.