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A significant aspect of assessing the current state of Uzbekistan’s exports is the diversification
of the geographical focus of exports. An analysis of the geography and concentration of goods export
markets shows a high concentration of Uzbekistan’s export markets for almost all goods. Uzbekistan
today has trade relations with 198 countries of the world. The largest volume of turnover was recorded
with China (21.9%). Next comes Russia with 15.8%. Almost 50% of exports go to the main 4 markets.
This trend may have negative consequences for the country's sustainable economic growth.
Uzbekistan’s foreign trade turnover with the CIS countries reached $20.6 million. Of this, the
export volume amounted to $8.1 billion, and the import volume amounted to $12.4 billion. The basis
of exports of manufacturing products in Uzbekistan are textiles and chemicals. According to World
Bank
research for Uzbekistan, industries that can benefit the economy include such as electrical
industry, renewable energy, and the packaging materials industry. The following sectors were also
identified as priority sectors: the food industry and the building materials industry.
As President Sh. Mirziyoyev during the video conference meeting on priority tasks in the field
of investment, export and industry for 2024 pointed out that in order ‘to take our country's economy
to a new level, it is necessary to increase exports by at least 30 percent annually.
Uzbekistan has joined the GSP+ system and has the opportunity to import 6,200 types of
goods into Europe duty-free. In 2024 only 384 types of goods were exported. Phytosanitary permits
from foreign countries were obtained for the export of fruits and vegetables, but this opportunity was
not fully used as well.
There are 24 special economic zones in regions of Uzbekistan. Unfortunately, not all of theses
SEZs are used effectively and in this regard, it was decided by head of the government to implement
a new experiment for the development of SEZ and increasing by this production, employment and
exports. In particular, 240 hectares of land in special industrial zones in Bukhara, Navoi and Tashkent
regions will be outsourced to foreign companies.
As an example, it was mentioned to adopt a program for the development of the food industry
in the regions. In particular, the tasks have been set to establish the production of 25 types of processed
food products that are in great demand in our country, and also to introduce international standards
at food enterprises. Proximity to large markets such as Russia and China can be noted as the main
driver for the development of food industry for export. The main sources of competitiveness in this
industry for Uzbekistan are the relatively low cost of labor and electricity for production.
The main problem in this sector is the lack of knowledge on the proper storage of fruits and
vegetables for their further processing. Increasing Uzbekistan's strategic storage capacity and
introducing regulations that facilitate the production of high-quality food products in accordance with
the rules and standards of large demand centers such as the EU is an important
condition for this
sector of the industry and further exports.
Such opportunities also exist in the leather industry. For example, there is a strong demand
for car covers, sporting goods, shoes and handbags. Based on this, it is recommended to industry
leaders to form industry projects in the regions. The most promising direction for solving the problem
of negative trade deficit is the accelerated growth of production of competitive finished products and
diversification of the national economy through the accelerated development of small industrial
business, more efficient use of rental income to strengthen the potential of state institutions and
human capital, creating the necessary prerequisites for the redistribution of investments in favor of
the
manufacturing industry, resource conservation, transition to a unified technological politics.
Increasing the share of finished products in the structure of exports will increase the elasticity of
exports at the exchange rate and create other conditions for increasing the efficiency of monetary and
fiscal policy. Scholars point out that countries capable of producing and exporting more
technologically advanced goods usually experience higher rates of economic growth. This is because
high-tech goods typically have higher added value, which contributes to increased income and
investments in research and development. Another point for increasing industrial exports is that
exporting products with a high level of technology requires innovation and
continuous technological
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progress. This can stimulate innovation within the country and enhance its competitiveness in global
markets.
Underestimating technological development and promoting low-tech products can lead to the
displacement of countries from markets for more technologically advanced products. This can limit
the potential for economic growth in the country and reduce its competitiveness in the long term.
Decreased opportunities for economic growth and a decline in quality of life can pose threats to the
economic security of the country. This can lead to social and economic problems such as
unemployment, social tension, and instability.
Thus, maintaining and developing the export of high-tech goods plays a crucial role in
ensuring sustainable economic development and ensuring the economic security of the country. Also,
export diversification has a positive effect on the rate and sustainability of economic growth.
Therefore, it is necessary to continue to support exporting enterprises, and also create conditions for
growing small sectors of the economy that can further increase export potential and diversify the
range of the export basket. An important feature of export-oriented industrial development is a
properly formulated and aggressive marketing and export strategy of the businesses, developed taking
into account the needs of the customer and the presence of potential competitors.
On a regular basis, it is essential to provide comprehensive information about the produced
and offered products on the websites for international trade like Alibaba.com,
conduct marketing
research on external suppliers, buyers, and competitors, and participate in international exhibitions,
among other activities. Additionally, it is important to promote the products of domestic
manufacturers in potential buyer countries through trade intermediary links, trading houses, and
representations of industrial enterprises. The decrease in competitiveness of domestic goods in the
markets of major trading partners due to events in the currency markets of these countries and their
overall economic situation provides Uzbekistan with a good reason to pursue a policy of diversifying
export markets and opening up new opportunities for creating export-oriented goods in new markets.
Undoubtedly, diversifying external markets reduces the risks of the influence of financial and
economic crises in individual countries on the economy of Uzbekistan.
