CERR analyzes how Uzbekistan’s economy will change upon joining the WTO
Tashkent, Uzbekistan (UzDaily.com) -- Obid Khakimov, the Director of the Center for Economic Research and Reforms (CERR), spoke at a briefing in the United States about the assessments of foreign trade liberalization and the impact of Uzbekistan’s accession to the WTO.
According to the CERR estimates, after joining the WTO, a reduction in trade costs can be expected, resulting in a significant increase in GDP and the well-being of the population. This was stated by the Director of the Center for Economic Research and Reforms (CERR) Obid Khakimov during a briefing held at the UN headquarters in New York.
"In particular, with trade liberalization, economic growth at the level of 0.4-0.5% and well-being at 0.9-1.0% can be achieved," said Obid Khakimov.
The head of the CERR emphasized the importance of continuing the course of ongoing reforms, noting that today Uzbekistan is working on diversifying trade partners, confirming its commitment to joining the WTO.
"I would like to especially note the ongoing liberalization of import duties, which is very important for increasing the well-being of the population. Reforms are taking place in the field of technical regulation, where Uzbekistan is adapting to WTO norms and standards, including reviewing non-tariff trade barriers," said Khakimov.
Speaking about the results of Uzbekistan’s open foreign economic policy, the director of the CERR spoke about the breakthrough results achieved.
As Obid Khakimov noted, the reforms carried out in Uzbekistan have aroused interest and approval in the world. Thus, in 2017, the "textile protocol" with the European Union entered into force, in 2021, Uzbekistan became a beneficiary country of GSP+, in 2022, the "Cotton Campaign" lifted the boycott of Uzbek cotton, reflecting the effectiveness of large-scale reforms in all areas.
"Thanks to favorable macroeconomic conditions, over 6 years, the economy of Uzbekistan has grown from US$53 billion to US$82 billion in 2022, GDP per capita has increased from US$1604 in 2018 to US$2255 in 2022. Open foreign economic policy has allowed to increase the inflow of investments threefold - from US$3.3 billion in 2017 to US$9.8 billion in 2022," emphasized Obid Khakimov, speaking at a briefing at the UN.
As a result of the liberalization carried out, the turnover of foreign trade is growing rapidly, increasing export opportunities.
According to estimates, the measures taken have allowed increasing exports from US$12.6 billion in 2017 to US$19.3 billion in 2022. The nomenclature of exported goods has expanded from 1.5 thousand to 3 thousand, the geography from 139 to 164 countries, and the export of finished products has doubled.
At the same time, one of the new priorities of the reforms carried out is the vector for the development of closer, mutually beneficial relations and economic ties with the countries of Central Asia, believes Khakimov. According to calculations, mutual trade between Central Asian countries has grown 2.6 times, from US$4.2 billion in 2016 to US$11 billion in 2022, the number of joint ventures has increased 5 times.
In conclusion, Khakimov emphasized that "the reforms carried out speak of a commitment to reforms, and the results speak of a high potential for economic development."
Director of the CERR Obid Khakimov spoke at the briefing "Current Issues of the Global and Regional Agenda: Uzbekistan’s Perspective," which was held on 4 December at the UN headquarters in New York. The briefing was dedicated to the speech and initiatives of the President of Uzbekistan, voiced during the 78th session of the UN General Assembly in September.