a journey towards global integration — Daryo News

Uzbekistan’s WTO accession: a journey towards global integration

At the heart of Uzbekistan’s push for greater integration into the global economy is its bid to join the World Trade Organization (WTO). In an interview with Daryo, Jean-Sébastien Roure, Head of Trade Policy & Investment Facilitation Unit at the International Trade Centre, shed light on how Uzbekistan’s accession to the WTO could open new avenues for economic growth and development.

Roure who has been actively involved in Uzbekistan’s WTO accession process for the past four years, highlighted the country’s rapid transformation: “Every time I come, things have changed. You see investment coming in… Things are getting smoother, better. So you see a lot of improvement happening, and that makes things easy.” His observation reflects Uzbekistan’s ambitious reforms to modernize its economy and infrastructure, creating a more favorable environment for business and trade.

When asked about the specific benefits of joining the WTO, Roure emphasized the importance of regulatory and institutional predictability for micro, small, and medium-sized enterprises (MSMEs). He noted, “For MSMEs, what is critical about the WTO accession and agreement is the predictability, regulatory and institutional predictability… If we look at the private sector… regulatory changes, fragmentation, obstacles, will increase their cost. And many times, this cost cannot be borne by those MSMEs.”

Roure further explained that WTO membership would provide Uzbekistan with three levels of predictability. First, it would offer “predictable conditions to access markets in trading partners.” He cited the example of Vietnam, which saw its export restrictions lifted upon joining the WTO: “Before Vietnam became a member of the WTO, they were subject to a limit in terms of increase of exports for textile and clothing products… Once they became a member, this limitation was scrapped.”

Second, WTO membership would shield Uzbekistan from unilateral trade measures imposed by other countries for geoeconomic reasons. “The WTO provides predictability against any unilateral measures that may impact those conditions based on geoeconomic reasons,” he said. This protection is especially vital in a world where global supply chains are being reshuffled and investors are increasingly seeking stable environments.

The third level of predictability comes at the domestic level. As Roure noted, “By joining the WTO, you are locking in reforms… especially in a time where the country wants to diversify its economy.” This means aligning with international standards, such as sanitary and phytosanitary regulations and technical barriers to trade, which are essential for participation in global value chains. “If you don’t go by those standards… it’s very difficult for you to become one segment of this value chain,” he pointed out.

He also spoke about the ITC’s role in supporting Uzbekistan’s WTO accession. He mentioned that the ITC has been active in Uzbekistan for four years, assisting the country in four key areas: negotiating the accession process, preparing the necessary documentation, guiding domestic reforms, and sensitizing the private sector. “We have been working with the chief negotiator of this country and his team quite actively in four different fronts,” he explained. “We provide technical input… inform the decision… negotiate.”

However, the journey is not without its challenges. Roure acknowledged the complexity of the process, stating, “The negotiation process is complicated… because it requires the mobilization of different stakeholders… it’s not always perfect.” Despite these hurdles, he praised the Uzbek government’s strong political will, noting, “There is a very strong political will here to make this happen… which is not a given and is one of the critical keys for success in the process.”

He added that Uzbekistan has made significant progress, citing the four working party meetings held over the past 14 months as “very important milestones” in the accession process. “These are meetings between Uzbekistan and all WTO members who recognize the work, the progress that the country has made in this accession,” he said.

Looking ahead, Roure stressed that WTO accession is “not an end in itself,” but rather “the start of the journey.” He explained, “The WTO accession will not resolve all problems… It is one element of the overall strategy… There are many other issues that need to be addressed in terms of developing the skills of entrepreneurship, specific sectors, supply-side issues in value chains.”

In closing, he reiterated the importance of sustained efforts: “You have to keep going. Just like riding a bike, you cannot stop pedaling.” Uzbekistan, he believes, is well on its way to achieving its goal of becoming a full WTO member by 2026, provided that the necessary reforms continue to be implemented effectively. 

As Uzbekistan accelerates its efforts to join the WTO, it is clear that the country is poised to play a more significant role in the global trade landscape. With a strong political will, ongoing reforms, and the support of international partners like the ITC, Uzbekistan is taking confident strides towards a more integrated and prosperous future.

Watch the full interview:

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