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Economy 07/11/2023 Germany supports the development of trade in Central Asia
Germany supports the development of trade in Central Asia

Tashkent, Uzbekistan (UzDaily.com) -- The 10th regional meeting of National Trade Facilitation Committees (NTFCs) of Central Asian countries began in Tashkent on 7 November.

The two-day meeting is organized by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) as part of the GIZ regional project "Trade Facilitation in Central Asia."

The regional project "Trade Facilitation in Central Asia" is implemented by Deutsche Gesellschaft für internationale Zusammenarbeit (GIZ) GmbH in Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The main goal is to improve measures for trade facilitation in the region by providing consulting support. The project supports the acceleration of cargo control procedures at the border and in transit, making them more efficient and transparent.

The Network of National Trade Facilitation Committees (NTFCs) began its activities in 2019 as an important platform for consultations with balanced participation from the private and public sectors. It serves to coordinate the planning and implementation of trade facilitation reforms in the spirit of cooperation among its members in Central Asia.

Key representatives involved in the regulation and implementation of trade facilitation measures from Central Asia are participating in the regional meeting. This includes the Ministry of Investments, Industry, and Trade of the Republic of Uzbekistan, the Customs Committee under the Ministry of Economy and Finance of the Republic of Uzbekistan, as well as representatives from relevant national authorities and the private sector from Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. The delegation of the EU, the German Embassy in Uzbekistan, international organizations, and development partners are also participating in the event.

It was noted that over the last 20 years, thanks to the partnership with national government agencies, the share of Central Asian countries in the foreign trade turnover in 2022 amounted to almost 15% of the total.

A comparison of the indicators of 2004 and 2022 shows a multiple growth in Uzbekistan’s foreign trade turnover with the countries of the region: with Kazakhstan - almost 11 times, with Kyrgyzstan - 18.5 times, with Turkmenistan - almost 6 times, with Tajikistan - almost 4 times.


Shukurullo Muminov

Shukurullo Muminov, Deputy Head of the Department of Strategic Planning and Trade Facilitation of the Customs Committee of the Republic of Uzbekistan, emphasized the results of progress in simplifying trade procedures:

"If previously it took 2-3 hours to register a cargo customs declaration, then as a result of automation of this process, it now takes 2 minutes. The customs clearance period has been reduced from 3 three days to 1 working day. Customs inspections, which previously took 2-3 days, now require 10-15 minutes. In general, customs inspections have been reduced by 1.7 times, efficiency increased by 1.3 times."

During the meeting, experts from Central Asian countries discussed the results of GIZ’s study on the progress in implementing trade facilitation measures in Central Asia over the past 20 years as part of the GIZ regional project "Trade Facilitation in Central Asia." They also shared their experiences in trade development, simplification, and digitization of customs procedures.

Participants also visited the Customs Committee under the Ministry of Economy and Finance of the Republic of Uzbekistan to learn about the achievements in introducing innovative methods of customs administration, simplification, and digitalization of trade procedures at the Customs Declaration Center.

Participants also got acquainted with the achievements within the GIZ project "Trade Facilitation in Central Asia."

It was noted that the project, in collaboration with national partners, supported the implementation of trade facilitation measures in the region, including:

- Implementation of a risk management system in customs and other border agencies.

- Digitization of trade and transit procedures, including the Single Window system for export-import operations to simplify vehicle control, the international digital TIR system, which ensures the secure exchange of data about the international transit of goods in accordance with the provisions of the TIR Convention between national customs systems and allows customs to manage data on guarantees, the electronic phytosanitary certificate (e-phyto), allowing national regulatory authorities to exchange certificates electronically and reduce time and improve the reliability of documentation for the import and export of plant products, and more.

- The development of public-private dialogue in the field of trade facilitation and the creation of National Trade Facilitation Committees in the region.

The average trade facilitation indicators (cooperation of internal border agencies, cooperation of external border agencies, information availability, involvement of the trade community, trade procedures) have improved by more than 10% over the last 3 years in four Central Asian countries (Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan).

Special attention at the meeting was given to the results of the analysis of mapping digital solutions for trade facilitation in Central Asia, data protection, and privacy aspects.

Additionally, one of the main highlights of the event was a session on how to use artificial intelligence to access information about cross-border trade. Participants also discussed further priorities and initiatives to strengthen regional cooperation in the field of trade facilitation and mechanisms of implementation.

Felicitas Siek, Manager of the GIZ project "Trade Facilitation in Central Asia," noted that the government of Germany and GIZ have been supporting the countries of Central Asia in trade facilitation for nearly 20 years.


Felicitas Siek

According to her, cross-border trade is by definition a topic that requires the involvement of more than one country. By initiating the regional platform of National Trade Facilitation Committees back in 2019, GIZ facilitated the cooperation of the Central Asian countries on this important topic for the economic prosperity and stability of the region.

Regional dialogue among the countries of Central Asia is a very important tool for implementing trade facilitation reforms and removing barriers to trade development at the regional level, she added.

Felicitas Siek also noted that in April 2023, a "Statement on cooperation between the National Trade Facilitation Committees of Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan in the field of trade facilitation" was signed to take cooperation between National Trade Facilitation Committees to a new level, promoting the exchange of information, consultations, and joint implementation of measures to promote and facilitate regional trade.

Thanks to collaborative efforts with key stakeholders involved in regulating and implementing trade facilitation measures, as well as consultations with representatives from the private sector at regional meetings, the implementation of trade facilitation measures in Central Asian countries has been improved. Members have studied and implemented experiences and best practices in the region, advanced joint solutions, and strengthened the potential in the field of trade facilitation, removing trade and transit barriers between Central Asian countries at both bilateral and regional levels, she added.

According to her information, in October 2023, the successful and effective experience of the National Trade Facilitation Committees (NTFCs) in Central Asia was proudly presented at a meeting of the World Trade Organization (WTO) Trade Facilitation Committee as one of the unique examples in the world.

During the meeting, it was noted that Germany and GIZ will continue to support the countries of Central Asia in trade facilitation. A new phase of the project "Trade Facilitation in Central Asia" will be implemented from 2024 to 2026.

Felicitas Siek noted that the new phase of the regional GIZ project "Trade Facilitation in Central Asia," commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ), will focus on:

- Further implementation of digital solutions for trade facilitation.

- The use of the regional platform to develop and monitor a joint roadmap of measures for trade facilitation.

- Providing assistance to transport and logistics companies using air transport to expand their capabilities in order to improve service quality through new alternative corridors, such as the Trans-Caspian corridor, for access to the European market.

- Conducting specialized training for national partners to train them in the independent development of digital solutions for regional interaction.

 

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