navigating global standards — Daryo News

Uzbekistan’s digital transformation and WTO regulations: navigating global standards

On December 24, 2023, President Shavkat Mirziyoyev reviewed plans to develop artificial intelligence (AI) and telecommunications technologies as part of the Central Asian state’s Vision 2030 strategy to become a regional IT hub. This push focuses on expanding digital infrastructure, increasing internet access, and fostering IT education, with over 190,000 people employed in the sector so far.

Leveraging WTO’s General Agreement on Trade in Services (GATS)

The Central Asian state’s development of artificial intelligence (AI) and telecommunications is increasingly in line with international trade standards under the WTO’s General Agreement on Trade in Services (GATS), which aims to liberalize and regulate global services markets.

Uzbekistan’s revised telecom law, signed by President Shavkat Mirziyoyev in December 2024, supports this global alignment by easing restrictions on the telecommunications sector, including the abolition of licensing requirements for data transmission services in sectors like banking and online marketplaces.

Protection of Intellectual Property with WTO’s TRIPS Agreement

As the country builds its digital economy, the protection of intellectual property becomes crucial. By adhering to the WTO’s Trade-Related Aspects of Intellectual Property Rights (TRIPS), Uzbekistan ensures the security of its digital innovations and fosters foreign and local investment in its emerging tech sector. The new telecommunications law also introduces measures for digital labeling of telecom devices, reinforcing the protection of technological assets.

Utilizing the Information Technology Agreement (ITA) for Digital Growth

Uzbekistan benefits from the Information Technology Agreement (ITA), which eliminates tariffs on IT products, reducing the cost of technology imports and supporting the expansion of its tech infrastructure and digital services. The new law also facilitates greater collaboration between operators and providers, enabling the sharing of telecommunications infrastructure and spectrum on a contractual basis, further enhancing the IT landscape in the country.

Aligning Government Procurement with WTO Standards

The government’s modernization efforts are furthered by the WTO’s Agreement on Government Procurement (GPA), ensuring transparency, competitiveness, and non-discriminatory practices in the public sector’s digital transformation. The revised telecom law enhances transparency by transferring the authority for licensing telecom companies from the Ministry of Digital Technologies to an independent regulatory body, which will oversee tariffs, service standards, and consumer protection.

Expanding Digital Exports and Reaching Global Markets

Uzbekistan’s push to expand its IT sector includes a strong focus on boosting exports, with projections for the IT and telecommunication services industry reaching $1.2 billion. This growth is supported by the creation of new digital services, such as cloud data centers and AI labs, as well as favorable trade agreements. The revised telecom law is expected to further support this growth by streamlining services and reducing bureaucratic hurdles in telecommunications.

Integrating into the Global Economy Through Digital Transformation

Uzbekistan’s digital transformation aims not only at technological progress but also at fostering a competitive, open, and innovative economy. By aligning with WTO regulations, the Central Asian state is positioning itself as a key player in the global digital economy. The law also mandates that new buildings be equipped with telecommunications infrastructure, ensuring future-proofing of the country’s digital ecosystem. With an eye on sustainability and global competitiveness, Uzbekistan is ready to integrate more effectively into the international market through regulatory and infrastructural reform.

WTO accession by 2026

On December 27, President Shavkat Mirziyoyev signed a decree to align Uzbekistan’s export support measures with World Trade Organization (WTO) agreements, as reported by the Ministry of Justice. Key changes include the cessation of compensation for air and rail transport expenses for exports starting in 2025, with subsidies for shipments before December 31, 2024, to be paid by February 1, 2025. This aims to enhance the effectiveness of export support.

The decree is part of Uzbekistan’s ongoing WTO accession efforts. In November, agreements were finalized with the US, China, and other countries.

At a December 20 meeting, President Mirziyoyev stated that the country’s WTO accession was entering its final phase. Since April 2023, the government has accelerated preparations, including appointing a special WTO representative and establishing 20 support units across government departments.

Uzbekistan aims to join the WTO before the 14th Ministerial Meeting in 2026.

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