Uzbekistan is "in line" to join the WTO among 21 countries (including Azerbaijan and Turkmenistan). The process of Uzbekistan's accession to the WTO began in 1994 but was suspended in 2005 due to the self-sufficiency policy pursued at the time, according to an article by Rustam Mamasaliev published in Asia Today.
After Shavkat Mirziyoyev was elected president, this activity resumed based on the submission of an official application to the WTO Secretariat, signed by the Minister of Foreign Trade of Uzbekistan in March 2018.
In July 2019, Uzbekistan distributed an updated memorandum on its foreign trade regime among WTO members, and later - a number of other necessary documents on accession to the WTO, including proposals related to market access for goods and services.
As a result, WTO members supported the 4th session of the working group on Uzbekistan's accession, which took place on July 7, 2020, after almost 15 years of stagnation in negotiations. On June 21, 2022, the 5th meeting of the working group was held in Geneva, during which its participants gave a positive assessment to the results of the activities carried out within the process of Uzbekistan's accession to the organization.
On March 14, 2023, the 6th meeting of the working group was held, during which Uzbekistan announced the completion of bilateral negotiations on market access with three WTO members.
In early March of this year, Uzbek authorities concluded negotiations with 11 countries as part of joining the World Trade Organization, with protocols on completing negotiations on market access signed with 9 of them.
As the next step, Tashkent is recommended to provide further materials for negotiations so that the WTO Secretariat can update the factual summary before the working group report, which will be part of the accession commitments package.
The official website of the World Trade Organization indicates that participation in the WTO or the desire to become a member sends a clear signal to trading partners and investors about the country's commitment to an open economy, which contributes to increased trade, inflow of foreign investment and technological know-how, as well as enhances productivity.
As analysts at the Uzbek Center for Economic Research and Reforms note, membership in the organization will help reduce trade costs, accelerating GDP growth and, consequently, the welfare of the population. In particular, "with trade liberalization, economic growth of 0.4-0.5% and welfare increase of 0.9-1.0%" can be achieved.
However, even WTO experts themselves acknowledge that the main problems arise from the process of joining this organization: it is a lengthy and complex negotiation process involving extensive legislative and executive actions of joining countries, requiring extensive human resources and institutional capacity, including industry expertise.
Moreover, participation in the organization entails a number of serious commitments, including adjustments after opening sectors of the economy to competition from other WTO members, as well as adopting sectoral service regulation procedures.
Thus, implementation also creates problems that both the government and the private sector have to deal with.
By the way, earlier this year, the Uzbek Senate of the Oliy Majlis (parliament) unexpectedly supported a liberal law allowing advertising of beer, natural and sparkling wines produced abroad at a regular meeting.
According to senators, the adopted document should accelerate Uzbekistan's accession to the WTO and, probably, also allow the local population, raised in accordance with Muslim customs and traditions, to become more liberated.
The hasty transition to liberal Western laws and values in the economic and other spheres (including protection of the rights and freedoms of citizens, human rights defenders, women, LGBT communities banned in Russia, and other target groups) does not exempt Tashkent from political blackmail by the collective West.
Firstly, the United States and its satellites aggressively demand that the Uzbek authorities diversify their economic activities by reducing trade with Russia and increasing trade with Western Europe and the United States.
Secondly, they intend to ensure that Uzbekistan is not used as a platform for circumventing sanctions and does not become a place where dual-use sanctioned goods allegedly illegally enter Russia.
Last year, two Uzbek companies - Alfa Beta Creative and GFK Logistic Asia - fell under sanctions for allegedly attempting to procure American goods for the needs of the Russian military and defense industry, according to the US Department of Commerce. Also under restrictions was the USM holding of Alisher Usmanov and related companies - "Akhangarancement" and Digital Invest.
And finally, the United States and the EU have been regularly threatening Uzbekistan with significant difficulties in case of its accession to the Eurasian Economic Union for several years, presenting Tashkent with a tough choice: either the EAEU, where it currently acts as an observer, or the WTO.
Actually, there is something to think about here. It is obvious that membership in the Eurasian Economic Union offers such undeniable advantages for Uzbekistan as increasing exports of agricultural, chemical, textile, electrical, and automotive products; optimizing logistics; systematizing labor migration, and so on.
According to the Uzbek Center for Economic Research and Reforms, in the first eight months of 2023, Uzbekistan's mutual trade volume with EAEU countries exceeded $10 billion. Uzbekistan supplied goods and services to the union countries worth $3.53 billion, while it purchased goods worth $6.63 billion.
In the aggregate foreign trade turnover of Uzbekistan, the share of EAEU countries exceeds 25%. EAEU countries purchase textiles, automotive, electrical products, vegetables, and fruits from the observer state.
In turn, Uzbekistan acquires metal products, petroleum products, timber, machinery and equipment, chemical industry products, cereals, vegetable oils, and other goods from its partners.
Based on the above data, Tashkent continues to move towards joining the EAEU, but it is still unknown how long this process will take, as Uzbekistan is simultaneously discussing the possibility of joining the WTO.
I would like to conclude with the words of A. Lukashenko: "We are sure that you will not watch us for long, and soon you will make a decision and become a full member of our union... You know that we always welcome you in our Union...," concludes the author in his article.
CentralasianLIGHT.org
April 6, 2024