BAKU, Azerbaijan, October 24. The UK’s total
trade with Uzbekistan sits at 267 million pounds, in 2022 and over
the first quarter of 2023 combined, British Ambassador to
Uzbekistan Timothy Smart told Trend in an exclusive interview.
“There is huge potential, and the desire from both countries, to
grow this rapidly. Our aim is to double bilateral trade over the
next couple of years and to achieve at least 1 billion pounds by
2030,” he noted.
According to the ambassador, there are numerous sectors with
high potential for growth, including clean energy, transport,
healthcare, education, e-commerce, mining, and financial and
professional services.
“Uzbekistan has a young and dynamic population and lies in one
of the fastest growing regions in the world, offering clear and
tangible opportunities for UK businesses. Moreover, Uzbekistan was
one of the first beneficiaries of the UK’s Enhanced Preference
Developing Countries Trading Scheme (DCTS), which means that at
least 92 percent of all products manufactured in Uzbekistan are
duty free. It also offers much simpler rules of origin requirements
for exporting to the UK,” he explained.
As Ambassador Smart pointed out, the DCTS is the most generous
unilateral preferential trade agreement globally.
“It continues to reduce tariffs and simplify rules for
developing countries, as well as providing a trade bridge to the UK
retail market worth over 441 billion pounds. We are confident that
this will boost our bilateral trade,” the ambassador added.
Further speaking, Smart noted that UK Export Finance – the UK’s
export credit agency – can help mobilize finance and promote the
strengths of UK businesses in priority economic and social
sectors.
“These sectors include clean energy, transport, healthcare,
education, and manufacturing. UKEF’s healthy 3 billion pounds
market risk appetite for Uzbekistan positions the country as one of
the core pillars of the UK’s wider trade and investment offer. Tim
Reid, UKEF’s Chairman and Regional Director, visited Uzbekistan for
the first time ever this year. We also opened a new permanent
position at the Embassy – UKEF Regional Manager for Central Asia –
to further build stronger links with Uzbekistan and to offer
instruments for preferential financing of major investment and
infrastructure projects in Uzbekistan,” he added.
At the same time, a new 18 million pounds worth regional program
to support SME development over a five year period is currently
being designed, the ambassador said.
“It will aim to support 1,800 start-ups and SMEs in Kyrgyzstan,
Tajikistan, and Uzbekistan through providing targeted business
advisory support and offering innovative growth finance to those
with the highest potential, along with offering policy support to
facilitate creation of enabling environment for investment finance.
The program aims also to improve the capability of businesses by
providing access to Business Development Services (BDS) support.
This enables SMEs to innovate, improve management, scale up and
access investment,” he explained.
Ambassador Smart noted that the UK supports the improvement of
economic governance in Uzbekistan through its 25 million pounds
worth flagship regional Effective Governance for Economic
Development program.
“This is designed to provide technical assistance to
partner-governments over five years. The program aims to improve
economic policy performance in Kyrgyzstan, Tajikistan, and
Kazakhstan as well, by embedding evidence-informed processes into
government reform planning and implementation. EGED also supports
civil society in these countries to hold governments to account on
economic policy outcomes, engaging media, non-governmental
organizations, think tanks, business associations, and others,” he
explained.
Areas of engagement that intend to support more stable, open and
transparent delivery of economic policies in Uzbekistan include
such sectors as labor and employment, public procurement,
transformation of State Owned Enterprises (SOEs), decarbonization,
and e-commerce, the ambassador added.
In addition to the bilateral engagement with Uzbekistan, the UK
is also a contributor to wider regional initiatives to support the
generation of green energy through Casa 1,000 project (a $1.16
billion project currently under construction that will allow for
the export of surplus hydroelectricity).
Regarding the support for Uzbekistan’s renewable energy sector
development, the ambassador pointed out that the UK is keen to
support Uzbekistan in this field, including through introducing
British companies and their expertise to this area.
“We continue to work with the Uzbek Government to identify
opportunities for collaboration in renewable energy production.
This area is also of interest to UKEF in terms of providing
financial solutions to support the development of renewable
energy,” he said.
Further speaking, Ambassador Smart noted the 27th annual
Uzbek-British Trade Industry Council (UBTIC) is due to take place
in the UK on November 27-30.
“UBTIC provides a platform for business-to-business engagement
between British and Uzbek companies across numerous sectors,
including transport infrastructure. Senior Political and Business
leaders from the UK and Uzbekistan will highlight areas for further
cooperation and support provided by both Governments,” he
noted.
The UK Government is also highly supportive of Uzbekistan’s aims
to accede to the World Trade Organization (WTO), which will further
boost opportunities for British and Uzbek businesses to work
together.
“In this regard, we assist the Government of Uzbekistan in
providing recommendations on harmonizing legislation with
international agreements and standards, particularly in the area of
intellectual property rights protection. We expect that these
technical assistance projects will accelerate the WTO accession
process and help further boost innovative development in the
country,” he said.
He further noted that the UK is keen to support Uzbekistan’s
ambitious privatization program including through working with the
London Stock Exchange and the UK’s world-leading financial and
business services sector.
“UKEF provides a platform for UK Government support to
large-scale projects in Uzbekistan, that in turn will advance
bilateral trade. Over the next couple of years technical assistance
on effective economic governance and delivery of reforms will
continue to be provided through the Effective Governance for
Economic Development (EGED) program in such policy areas as green
transition, SOE transformation, further development of e-commerce
and the private sector in Uzbekistan, as well gender mainstreaming
and support to labor market reforms,” the ambassador concluded.