Gov’t plans to reduce import of dozens types of goods

In 2021, the government of Uzbekistan approved a new form of import restriction – the quota procedure. According to it, tariff quotas can be applied to imported goods from March 3, 2022.

According to the regulation, reduced or current rates of import duty may be applied to goods imported to Uzbekistan in the specified volume within the tariff quota. The size of the tariff quotas, their validity period and the rate of import customs duty are determined by the Cabinet of Ministers.

Tariff quotas can be understood as setting annual (monthly or quarterly) quantitative limits for goods imported into the country.

At the time, economists said the order was a new tool to restrict trade and that the poor would suffer the most.

“One ministry distributes the specified quota amount to importers. In other words, it is up to the government to decide who to grant import rights to. And this by itself will cause further escalation of corruption not only in our country, but also in any country,” Mirkomil Kholboyev said.

“For almost 30 years, we have not been able to enter the WTO, we have been sharply cut off from the world market and have been engaged in “protection of the local market”. Since then, this trade philosophy has justified itself neither here nor anywhere else,” Bekhzod Khoshimov said.

“Behind the goal of supporting domestic manufacturers is actually using a group of domestic favorites,” Otabek Bakirov said.

Former Minister of Investments and Foreign Trade, currently Head of the Presidential Administration Sardor Umurzakov said that this does not mean that tariff quotas will be introduced for all goods.

“This is a mechanism that exists in all countries. This should not be misunderstood. There is no such thing as a quota for all products, it is given only for familiarity, and there is no such thing as a monopoly,” Umurzakov said.

In response, economist Mirkomil Kholboyev said that “it is not necessary to transfer bad experience”.

Uzbekistan was again reminded that it should remove trade barriers

At the economic forum of Uzbekistan held in Samarkand on November 3-4, World Bank experts reminded that trade barriers should be removed during the WTO membership discussion.

“If we talk about the policy of protectionism, if we protect some industry, we prevent the development of other sectors,” Antonio Nutsifora, manager of the World Bank's trade and regional integration practice, said.

It should be noted that Uzbekistan applied to become a member of the World Trade Organization in 1994.