Uzbekistan has been deepening trade integration with neighboring economies over the past five years through joining the Eurasian Economic Union (EAEU) in 2015 and through bilateral deals. Key impacts on the economy include:
Exports get preferential access to major regional markets like Russia, Kazakhstan and Kyrgyzstan, which together account for nearly half of Uzbekistan’s overall trade volumes. This has helped spur export growth in sectors like food products, machinery, technical equipment and chemical products.
Imports from regional trading partners have also risen substantially since 2015 as trade barriers fell. While import competition has intensified for some domestic manufacturers, cheaper imports benefit local consumers through lower prices.
Joining the EAEU boosted foreign direct investment inflows from Russia as firms localized production in Uzbekistan to better access the wider Central Asian consumer market. However, local content requirements on new investments aim to strengthen linkages with domestic suppliers over time.
With trade barriers now eliminated, Uzbek goods and services can freely access a combined market of 183 million consumers across the EAEU. This drives productivity enhancements as Uzbek firms invest to move up the value chain and meet higher quality standards.
Further efforts are underway to reduce non-tariff barriers and develop cross-border transport infrastructure to facilitate trade. More connectivity and integration will likely be an economic priority going forward given Uzbekistan’s landlocked geography.
With trade barriers eliminated—Uzbek goods and services can freely access a market of 183 million consumers across the EAEU. This drives productivity enhancements and investments to meet higher quality standards.
Further efforts are underway to reduce non-tariff barriers and develop cross-border infrastructure to facilitate trade. More regional connectivity will be an economic priority going forward. Uzbekistan has been deepening trade integration with neighboring economies through joining the Eurasian Economic Union (EAEU) in 2015 and through bilateral deals.
