Uzbekistan to retain right to protect certain economic sectors as part of WTO
TASHKENT. Jan 27 (Interfax) - Uzbekistan, in accordance with the World Trade Organization (WTO) agreements, retains the right to protect certain sectors of the economy in case of certain difficulties, Uzbek Special Presidential Envoy for WTO Affairs Azizbek Urunov told reporters.
WTO membership pursues two key goals as part of a strategic plan for Uzbekistan - export development and attracting investment, he said.
"It is almost impossible to ensure long-term and sustainable economic growth without an active export policy and joining global value chains. The domestic market's potential is objectively limited, and as it becomes saturated, further development is possible only by expanding its presence in foreign markets," he said.
It is crucial not only to raise capital, but also to ensure its technological, institutional and managerial value, Urunov said. WTO membership is a message to the international community that the country's economy operates in line with transparent and predictable rules, he said.
Urunov added that this creates additional conditions for developing the industry and the service sector. Currently, around half of Uzbekistan's GDP is generated in the services sector, which, as he said, indicates major potential for further growth.
Urunov also drew attention to the country's geographical location. Uzbekistan is surrounded by rapidly developing markets such as China, the Middle East, and India. The active development of the economies of Saudi Arabia, the United Arab Emirates, Qatar, Kuwait and other countries brings steady demand for agricultural and industrial products, as well as services, which creates favorable conditions for the country's integration into global value chains.
Speaking about the long-term effects of WTO membership, Urunov said that, according to World Bank estimates, joining the organization could provide an additional approximate 17% increase in the country's GDP in the next five to seven years. International surveys showed that developing WTO member countries on average would yield an additional GDP growth of 1-1.5 percentage points per year in the longer term compared to non-WTO member countries.
Urunov also elaborated on the WTO's legal mechanisms that will be used to protect the interests of Uzbekistan and domestic businesses. This primarily refers to protecting export interests.
"Partners are often willing to purchase raw materials from us, but react negatively to the supply of processed products with high added value. In such cases, discriminatory measures are applied that restrict exports," he said.
WTO membership will enable Uzbekistan to challenge such actions in Geneva as part of mechanisms to address trade disputes, as well as on a bilateral basis, based on the organization's universal rules, he said. This will protect the country from unilateral and unjustified trade restrictions.
The key tools on the domestic market will be so-called trade remedies - anti-dumping, countervailing and protective measures. Currently, corresponding bills have been drafted in the country.
Uzbekistan adopted 30 WTO-related legal acts last year, and 29 more draft documents encompassing customs regulation, export duties, trade protection measures, intellectual property protection, technical regulation, as well as sanitary and phytosanitary measures and technical barriers to trade are currently being drawn up, Urunov said.
He said that Uzbekistan has made "significant progress" on the schedules of commitments for goods and services and has moved on to the stage of their consolidation. Final discussions on export duties, freedom of transit, and trade facilitation have begun, and the country remains a party to WTO sectoral agreements.
Urunov said earlier that Uzbekistan is in the final stages of completing bilateral negotiations, with agreements having been reached with 33 countries and protocols already signed with 30 of them.
The remaining bilateral and multilateral negotiations are scheduled to be completed in 2026, the working group's report will be drafted, national legislation will be finally aligned with WTO requirements, and decisive steps will be taken to complete the WTO accession process.
Uzbekistan obtained observer status in the General Agreement on Tariffs and Trade in June 1994, and a working group on WTO accession was established in 1998. Negotiations were then suspended. In 2017, Uzbekistan's leadership resumed its WTO accession efforts. In July 2019, the Uzbek side submitted an updated memorandum on its foreign trade regime to the WTO for consideration of its application. Negotiations between Uzbekistan and WTO countries on the terms of accession began in late June 2022.
