BAKU, Azerbaijan, Mar. 18
By Klavdiya Romakayeva - Trend:
According to preliminary calculations, the volume of imports to Uzbekistan may generally grow by five percent upon joining the WTO (World Trade Organization), Trend reports with reference to the CERR (Center for Economic Research and Reforms).
On March 16, 2021, Deputy Director of the Center for Economic Research and Reforms (CERR) Umid Abidkhodjaev took part in the International Conference on Export Development and Support in Uzbekistan country.
Providing an analysis of the comparative advantages in the economy and the prospects for the growth of the export potential of Uzbekistan, he noted that during 2016-2019, the volume of Uzbekistan's exports increased from $12.6 billion up to $17.9 billion or 42 percent.
“However, in 2020, the coronavirus pandemic had a negative impact on export performance, which was down 15 percent,” he said.
Taking into account the priorities outlined by the president of Uzbekistan in his address to the Oliy Majlis (Parliament), Abidkhadzhayev noted that the government was tasked with increasing the volume of exports of goods and services by at least 20 percent this year.
In addition, the further integration of Uzbekistan into the world economy will facilitate the entry of domestic products into new export markets. In this regard, the following measures are being taken, including active negotiations on joining the WTO, reception of the status of an observer country in the EAEU. Also, cooperation is underway with the European Union, which contributed to the adoption by the European Commission of a positive decision on the application of Uzbekistan for obtaining the status of the beneficiary GSP +.
The analysis carried out by the CERR using the methodology of the International Trade Center shows that for certain types of products, Uzbekistan has significant unused export potential, in particular, fruit and vegetable products for $986.7 million, textile products for $686.6 million and electrical products for $56.6.
In addition, a preliminary assessment of the consequences of Uzbekistan's accession to the WTO was carried out according to the methodology for calculating Trade Creation Effect and Trade Diversion Effect.
“According to preliminary calculations, with the entry into the WTO and the reduction of import customs duties by 50 percent, the volume of imports to Uzbekistan may generally grow by 5 percent, and for the products of certain industries from 2 percent to 13 percent,” CERR reports.
The CERR also said that the impact on exports from Uzbekistan's accession to the WTO will generally be positive since the WTO member countries will apply to Uzbekistan the rates of import duties agreed upon within the WTO and these rates may be lower than those currently applied to Uzbekistan.
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