Uzbekistan exports its products to 115 countries

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Export is a key driver of the economy, enabling the development of production, the creation of new jobs, and the growth of GDP. For this reason, every state seeks to support enterprises aiming to expand their exports to international markets. This article explores the comprehensive measures of direct support for exporters in Uzbekistan.

Export support in Uzbekistan is carried out systematically, strictly adhering to the goal set in the Uzbekistan 2030 Strategy — increasing the share of the private sector in exports to 60%.

Here are some indicative figures: from 2017 to 2023, Uzbekistan’s total exports reached $120 billion. In 2023 alone, export volumes amounted to $24 billion, marking a 64% increase compared to 2017.

Over the past six years, Uzbekistan has expanded its export geography to 33 new countries, bringing the total number of foreign markets to 115. For the first time, Uzbek products have entered markets in countries such as Peru, Panama, Mexico, the Dominican Republic, Argentina, Albania, Serbia, Finland, Luxembourg, and others.

In recent years, the national export support system has focused on involving businesses in export activities.

For example, last year, around 3,000 local companies joined export activities. Meanwhile, from January to October of this year, 2,450 enterprises entered foreign markets for the first time, exporting goods worth a total of $1 billion.

Another component of this comprehensive effort is the creation of a favorable regulatory environment.

In recent years, Uzbekistan has introduced significant regulatory changes aimed at simplifying and incentivizing export activities.

In particular, the Presidential Decree “On Measures for Implementing Tasks Identified at the Fourth Open Dialogue Between the President of the Republic of Uzbekistan and Entrepreneurs,” dated August 30, 2024, focuses on supporting small and medium-sized businesses and includes measures to improve financial conditions for entrepreneurs.

Under the Decree, banks are now permitted to issue unsecured microloans of up to 300 million sums (approximately $24,000), expanding access to capital. For catering businesses, tax incentives have been introduced, including a 50% reduction in corporate income tax from 2025 to 2028 and the reimbursement of part of the VAT for non-cash payments. Additionally, the procedure for VAT refunds for exporters has been simplified through the use of customs data, fostering export development and reducing administrative barriers.

The Presidential Decree “On Measures to Accelerate the Development of the Factoring Services Market,” dated August 12, 2024, aims to expedite the growth of factoring services in the country. It expands opportunities for non-bank financial institutions, allowing them to engage in factoring activities. The decree also broadens operations with monetary claims, including re-factoring and the ability to work in foreign currencies. Moreover, it includes the establishment of an electronic platform for automating application processing and document verification, integrated with state systems. These measures enhance the accessibility of factoring services for businesses, improve liquidity, and simplify trade and financial processes in the country.

The Presidential Resolution “On Measures to Further Enhance the Role of Entrepreneurial Associations in Developing Foreign Trade and Regional Industry,” dated March 14, 2024, is aimed at strengthening the role of business associations in advancing foreign trade and regional industry. The document provides for support and stimulation of exports and industrial production through tools offered by the JSC “Trade Development Company,” the creation of technoparks, improvement of infrastructure, and expansion of financial instruments for entrepreneurs. It also includes measures to strengthen partnerships between the public and private sectors to enhance competitiveness in international markets and improve domestic industrial policy.

The Presidential Decree “On Additional Measures to Ensure Food Security in the Republic,” dated February 16, 2024, aims to strengthen the country’s food security.

The Decree provides measures to support domestic food producers through preferential loans, subsidies, and tax benefits aimed at expanding the production and processing of agricultural products. Additionally, it emphasizes the promotion of food exports, including financial support through the Trade Facilitation Fund and simplification of certification processes. These steps will help improve the quality and competitiveness of Uzbek food products in foreign markets while ensuring the stability of the domestic food market.

The Resolution of the Cabinet of Ministers of the Republic of Uzbekistan, dated February 29, 2024, outlines measures for streamlining the export of fruit and vegetable products.

This document introduces initiatives to enhance control and regulation of external trade in agricultural goods, including the creation of effective mechanisms to ensure high product quality and compliance with sanitary standards and regulations. The resolution is designed to boost the competitiveness of Uzbek fruit and vegetable products in international markets while improving logistics and coordination for export deliveries.

The Presidential Resolution “On Measures to Introduce a Resilience Rating for Business Entities,” dated January 23, 2024, focuses on implementing a resilience rating system for businesses in Uzbekistan.

The primary goal is to establish a framework for evaluating business entities based on key indicators such as profitability, tax compliance, financial stability, and other factors affecting business sustainability. Depending on their resilience level, businesses will be classified into high, medium, or low rating categories, which will influence their access to benefits and subsidies. Businesses with high ratings will receive special support measures, including tax relief and expedited VAT refunds. The system also includes mechanisms for appealing evaluation results and monitoring business performance, aimed at increasing transparency and fostering trust between entrepreneurs and the state.

As highlighted above, these initiatives are part of a systemic approach: strategic goals and objectives have been set, and the necessary regulatory framework has been established.

Concrete practical measures have been implemented to increase the export potential of the republic through active support for exporting enterprises.

In Uzbekistan, a mechanism for providing practical financial support to exporters operates, including:

- introduction of international standards and certification,

- registration of national products abroad,

- participation in international exhibitions and fairs,

- conducting presentations, advertising campaigns, and promotion of national products and brands in promising markets.

Moreover, according to the Presidential Resolution dated March 15, 2024, "On measures to further increase the role of entrepreneurial associations in the development of foreign trade and regional industry," the Export Promotion Agency was transformed into the Joint Stock Company "Trade Development Company."

The main tasks of the new organization are defined as:

- increasing the efficiency and effectiveness of state financial support measures for participants of foreign economic activity based on the Resilience Rating of Business Entities,

- ensuring the allocation of state funds to enterprises exporting high value-added products and entering new markets.

The company also provides informational and advisory support to business entities on issues of transport logistics, certification, standardization and quality control, tax and customs administration, implements the "Made in Uzbekistan" program to promote national brands and products abroad, participates in the organization and financing of national, industry-specific and regional exhibitions, as well as trade fairs.

The company provides active financial support measures for exporters, including compensation for covering the insurance premium when using insurance services, for the implementation of international standardization and certification systems and registration of national products and brands.

Part of transportation costs, expenses for implementing reporting based on international standards, part of expenses related to opening and maintaining trade houses and warehouse premises, conducting advertising campaigns, expenses for attracting qualified designers, technologists, marketers, quality controllers and agronomists, attracting prestigious international brands, implementing international standards are compensated.

Commercial banks are allocated resources for financing pre-export and export-related trade operations.

Alongside supporting local exporters through direct financial mechanisms, the government is improving access to international trade networks and facilitating entry into leading global markets.

On April 10, 2021, Uzbekistan was granted beneficiary status under the "GSP+" system. This system provides preferential customs tariffs for goods exported by developing countries to the European Union, covering over 6,200 types of goods, including industrial and certain agricultural products. In 2023, Uzbekistan exported $426 million worth of goods under the GSP+ framework.

The primary growth in export volumes to Europe was driven by increased supplies of several key products: finished knitwear (growth of 104%, +$1.1 million), urea (109%, +$2.2 million), ammonium nitrate (173%, +$3.9 million), copper products (tripling, +$14 million), petroleum and gas products (111%, +$4 million), and cellulose (141%, +$2.3 million).

In 2023, 235 exporting enterprises received support for implementing 575 international standards and certifications, including ISO, Global GAP, Organic," "GOTS, REACH, LWG, GRS, RSC, and SEDEX. The total value of this support amounted to 39.3 billion sums, enabling Uzbek goods to be exported to seven major European markets in 2023: France, Lithuania, Latvia, Poland, Germany, Belgium, and Romania.

Overall, the ongoing export support reforms in Uzbekistan confidently pave the way for achieving the targets set in the National Strategy by 2030.

 

Press Service of the Ministry of Investments,

Industry, and Trade of the Republic of Uzbekistan