Successive rapid and bold reforms in all spheres of public and state life continue in Uzbekistan. One of them is the country’s openness to dialogue and the phased integration of Uzbekistan into the world community. One of the indicative moments is the interaction of Uzbekistan with the Eurasian Economic Community (EAEU) based on a thorough analysis and consideration of all relevant factors.
In general, one can single out the large geographical area of the EAEU, proclaimed by the market of "four freedoms": free movement of people, funds, services and goods. The use of a single territory and economic space facilitates internal, partner (within the free zone) and international trade for participants, since taxes, duties and costs are streamlined and reduced. Taking into account the steadily growing demand, for example, for fruits and vegetables, textiles and knitwear, etc., in the EAEU, interaction with this organization can contribute to an increase in product exports.
Another important aspect is the factor of labor migration. Today, the situation of labor migrants from Uzbekistan is aggravated by the presence of so-called bans on professions for citizens from visa-free countries that are not members of the EAEU. Thus, Uzbek migrants are prohibited from working in pharmacies, non-stationary retail trade facilities and markets, as well as in trade outside shops, stalls and markets. Interaction with the EAEU will allow the citizens of Uzbekistan to enjoy all the advantages and benefits of the common labour market within the organization and, if they have an employment contract, they will be able to stay in Russia indefinitely.
Also, legal employment for citizens of visa-free CIS countries that are not members of the EAEU requires the acquisition of a patent. With the abolition of labour patent fees, the cumulative direct benefits for migrants will be more than US$3 billion a year. In addition, six months after arriving in the countries of the organization, they will be transferred to the category of taxpayers, identical to the national ones, and, for example, only in Russia they will begin to pay 13 percent of personal income tax instead of 30 percent.
Almost all diplomas received in Uzbekistan will be recognized throughout the entire EAEU. This will lead to the removal of restrictions and simplification of procedures for employers in relation to citizens of Uzbekistan, which will increase their competitiveness in the labor market of partner countries. This also applies to issues of unconditional recognition of diplomas of higher and secondary education, protection of intellectual property and scientific and technical integration. Access to financial services of the organization’s banking system for citizens of Uzbekistan, including loans, credits and pension savings, will be facilitated.
As possible topics for a thorough analysis of possible consequences, one can single out the fact that close interaction with the EAEU can lead to increased competition in the domestic market, where domestic producers will compete with products from other countries, so weak industries and enterprises can incur significant losses. Moreover, an influx of cheap goods to Uzbekistan is expected, including through re-export, from the EAEU countries, in particular, engineering products, ferrous metallurgy, food, meat and dairy, fat and oil industries and household goods.
This predetermines the importance of the preventive development of tactics, which provides, on the one hand, measures to strengthen the competitiveness of industries, and on the other hand, to take into account the need for a transition period for certain sectors of the economy for more successful adaptation to the framework conditions of activity in the EAEU. In these conditions, competent diversification of the domestic economy, foreign trade and migration flows will allow for a pragmatic and balanced policy of interaction with the EAEU.
So, even in a pandemic, Uzbekistan’s trade with the countries of this organization is steadily growing. In this regard, it is important to support the initiative of the head of state regarding the development of a joint "Road Map" to eliminate existing barriers, harmonize technical regulations and standards, digitalize customs procedures in mutual trade.
We also highlight the fact that Uzbekistan is interested in expanding cooperation in creating interregional value chains by deepening industrial cooperation. In particular, this work can be carried out at the site of the annual industrial forum Innoprom - Central Asia in Tashkent.
Of undoubted interest is the importance of improving the network of transport corridors and logistics infrastructure as a key factor in the sustainable development of national economies. In this regard, we, as a political force reflecting the opinion of entrepreneurs, welcome the proposal to join the Agroexpress project launched by Uzbekistan jointly with Russia and Kazakhstan, designed to ensure the rapid mutual delivery of goods in demand.
In general, the next participation of the country’s leader in the meeting of the Supreme Eurasian Economic Council is another step towards establishing effective cooperation with the EAEU, promoting mutually beneficial cooperation and close cooperation with member countries of the organization.
By Aktam Khaitov for the Uzbekistan Daily.
