Over the past 30 years, U.S.-Uzbekistan trade relations have evolved from modest beginnings to a dynamic partnership marked by significant economic reforms and mutual interest in strategic sectors. As Uzbekistan opens its economy and pursues World Trade Organization (WTO) membership, the United States is stepping up to support this transformation, setting the stage for a new era of economic collaboration. In a recent interview with Daryo, U.S. Trade Representative Ambassador Katherine Tai emphasized the strategic importance of deepening these ties and unlocking new opportunities for growth.
The bilateral relationship has been characterized by a steady increase in trade volume, reaching $426.3mn in 2021, $493.2mn in 2022 and reaching $657.3mn in 2023. This growth reflects a broader trend of economic engagement driven by Uzbekistan's ongoing reforms and the United States' commitment to fostering stronger trade links.
Ambassador Tai highlighted Uzbekistan's clear political will to reform its economy, making it more market-oriented and providing broader economic opportunities. "We talked about the clear political will that Uzbekistan has demonstrated to reform the economy to make it more market-oriented and his vision for a new Uzbekistan that will be more connected, more modern and that will provide more economic opportunities for Uzbekistan's people," Tai said. Under President Shavkat Mirziyoyev's administration, significant strides have been made in areas such as intellectual property rights enforcement and the elimination of forced labor in the cotton sector. "We see really significant progress, important progress in the cotton sector to change the entire economy, to try to eliminate forced labor and child labor in a system that has existed for so long," she added.
Uzbekistan's efforts to join the WTO have also accelerated, with a new chief negotiator leading the charge. This move is seen as a positive step towards deeper integration into the global economy, and the United States has expressed strong support for this process. Tai underscored the U.S. commitment to assisting Uzbekistan in meeting the necessary requirements for WTO accession, saying, "The United States and USTR, my agency, stands ready and committed to continue to work with Uzbekistan on this WTO accession."
However, the journey is not without challenges. Geographic and geopolitical obstacles continue to pose significant hurdles to trade expansion. Uzbekistan's double landlocked status and its location in a complex regional neighborhood create logistical and strategic difficulties. "When you look at Uzbekistan, you appreciate that this is a double landlocked country and then you look at the neighborhood where all of you live, it's a tough neighborhood. There are many challenges, logistical and also geopolitical," Tai explained. Despite these challenges, the Uzbek government is strategically diversifying its trade relationships, seeking to overcome these barriers.
The potential for growth in sectors such as tourism, services, and critical minerals is substantial. Uzbekistan's rich history positions it well for tourism development, while its abundant natural resources offer opportunities for strategic supply chain collaborations. "I think that the region has a very deep and rich history, and that's certainly an area that we can look at. I also know that the region is very blessed in natural resources like critical minerals," Tai noted. The U.S. recognizes these opportunities and is exploring ways to enhance trade relationships to build resilience in critical supply chains.
Ambassador Tai also addressed the broader geopolitical climate, including the impact of the war in Ukraine and the importance of adhering to sanctions. While acknowledging the historical trade relationships in the region, she emphasized the positive engagement with Central Asian countries and their commitment to respecting Western sanctions. "Our engagement with the region has been positive. The desire to diversify trading relationships means that the challenge for the countries in this region will be to try not to violate sanctions," Tai stated.
In discussing trade logistics, Tai noted the significance of creating rules and frameworks to facilitate safe trading routes, particularly through the Middle Corridor and potentially through Afghanistan. "While my agency focuses on trade rules, we understand the strategic need for logistical pathways," she said. "The U.S. government is working with Uzbekistan to develop logistical capabilities."
The Jackson-Vanik Amendment, which regulates U.S. trade with former Soviet countries, remains a critical issue as Uzbekistan progresses toward WTO accession. Tai explained that Congressional action would be necessary to address the amendment, indicating ongoing engagement with both Uzbekistan and the U.S. Congress. "As we work with Uzbekistan on the requirements for WTO accession, the question will eventually be presented to the U.S. Congress," she noted.
Ambassador Tai underscored the importance of deepening the strategic bilateral relationship between the U.S. and Uzbekistan. "The world is becoming more complicated, and we need agile, strategic and honest relationships with our trading partners," she said. "I am excited to be here, to learn about the region and its history, and to explore how we can unlock new strategic opportunities."
Watch the full interview:
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