Uzbekistan is accelerating efforts to join the World Trade Organization (WTO), sparking discussions on the potential gains and losses associated with membership. Economic analyst Nodirbek Rasulov sheds light on the implications in an exclusive interview with "Daryo."
Understanding the WTO: Principles and Functions
Rasulov explains the World Trade Organization as a global entity that sets rules for international trade, promoting the liberalization of trade, transparency in agreements, and fostering an environment of international competition. He emphasizes the role of the WTO in curbing monopolistic practices and protectionism.
"In 2017, the president did not raise the issue of membership in the World Trade Organization for nothing. The consequences of not joining this organization on time are being seen today."
Aligning with WTO Principles: Challenges for Uzbekistan
Discussing the suitability of the WTO for Uzbekistan, Rasulov cites the challenges faced due to cold weather affecting fuel delivery, linking it to energy reforms. He highlights the consequences of delayed membership, echoing the importance of aligning with WTO principles.
To become a WTO member, a country must open its economy to the world market, minimize state intervention, and regulate monopolies. Rasulov underscores the need for legal adaptations, referencing recent constitutional reforms, including Article 67, aimed at creating a favorable investment environment, regulating monopolistic activities, and ensuring open mutual trade.
Timeline for Entry: Breaking Records or Facing Delays?
Rasulov compares the timelines of countries joining the WTO, with Kyrgyzstan taking three years and Russia holding the record at 23 years. Uzbekistan, having applied in 1994, faces sensitive requirements related to market economy issues, making predictions challenging. He emphasizes that earlier entry would benefit the nation.
"Wherever there is a monopoly, there is an abundance of low-quality products. In a monopoly, the demand is set by the producer."
Historical Delays and Current Reforms
The analyst reflects on why Uzbekistan's WTO membership process took decades. He attributes it to a closed economy, protectionist policies, and challenges in money exchange. While the issue was closed in 2005, recent reforms under the "Uzbekistan-2030" strategy aim to reduce state-owned companies and eliminate monopolies.
"Today, there are more than 2,300 state-owned companies in Uzbekistan. It is intended to reduce the number of these companies by 6 times by 2030."
Impact on Ordinary People: Opportunities and Downsides
Rasulov envisions a different lifestyle for Uzbeks if WTO membership had occurred earlier, emphasizing the potential for affordable, high-quality products entering the market. He explains how competition ensures lower prices and improved living standards, using the example of electric cars.
However, he acknowledges downsides, such as increased competition in agriculture.
"There are some downsides to joining the World Trade Organization. If we become a member of the organization, agricultural products will come to us. This, in turn, affects our agriculture."
Geographical Advantage: Economic Opportunities
Highlighting Uzbekistan's strategic location, Rasulov envisions lower logistics costs with WTO membership, particularly in dealings with Kyrgyzstan and Kazakhstan. He emphasizes the need for a balanced approach to maintain economic stability.
As Uzbekistan steers toward WTO accession, the interview provides valuable insights into the nation's economic transformation, underscoring the delicate balance required to navigate challenges and seize opportunities.
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