In the process of Uzbekistan's accession to the World Trade Organization (WTO), a reduction in import tariffs is expected, but transition periods of up to eight years are being discussed for 'sensitive' sectors of the country's economy. This was announced on February 17 by the President's Representative on WTO Issues, Chief Negotiator Azizbek Urunov, in a conversation with journalists. He emphasized that while tariff reduction is a general trend, liberalization in areas such as agriculture, light industry, and the automotive sector will be implemented gradually.

Focusing on changes in the automotive market, Urunov noted that significant liberalization has begun in this sector over the last eight to nine years. "Previously, on the streets of Tashkent, we mainly saw our cars of two or three models. Now there is no model that doesn't exist. This indicates two things: the process of liberalization in this sector has begun, and our people's purchasing power has increased," he said. It was also noted that the average price of cars purchased by the population has risen from $10-12,000 to around $20,000.

Regarding non-tariff restrictions, Urunov acknowledged that some of them served a protectionist function, but part of the measures was abolished as early as September last year. He also stressed the need to make certain functions of modern cars (e.g., the requirement for a Chinese SIM card in Chinese vehicles) more convenient for Uzbekistan's population: "Why should we buy a Chinese SIM card and have our people pay $50-60 a year to use that system?"

On tariff policy, Urunov stated that import duties have halved over the past eight years, with the previous average duty of 30% and engine volume-based payments significantly reduced. He also noted that Uzbekistan aims to maintain some flexibility in tariff policy upon WTO accession, but this is not protectionism. "If we take major states—China, India—their average import tariff level at the time of joining the World Trade Organization was four to five times higher than ours," he said.

Concerning harmonization with WTO requirements, Urunov pointed out that it is difficult to hide regulatory specifics in the negotiation process, and partner countries are closely studying market conditions. Regarding subsidies to state enterprises, he highlighted WTO transparency demands: "Subsidies can only be provided within the framework of agreed obligations."

According to a KPMG Uzbekistan report from October 2024, tariffs in Uzbekistan reached up to 70% or more of the price of foreign cars, with certification and fuel issues hindering market development. From January 1, 2026, preferential customs payments for small-engine cars will be discontinued, and from May 1, 2025, the utilization fee for electric vehicles will increase, which could further raise prices for foreign cars.

Source: www.gazeta.uz