The Europe-Uzbekistan annual business meeting recently took place in Brussels, marking a significant milestone in the growing partnership between the European Union (EU) and Central Asia’s most populous country. This gathering brought together influential figures from the realms of business and politics, creating an opportune moment for collaboration between these two regions. With the recent signing of a roadmap for Europe and Central Asia, it is clear that the EU is dedicated to fostering a bond with Uzbekistan, one focused on peace, growth, and stability.
Central Asia has taken center stage in the eyes of Europe, as it offers a market of over 80 million people, ripe with potential for mutually beneficial economic opportunities. Klaus Mangold, the chair of EUROUZ (Europe-Uzbekistan Association for Economic Cooperation), emphasized the vital role Uzbekistan plays in this equation. German exports to Uzbekistan have already doubled over the past two years, particularly in the machinery and industrial sectors.
Mr. Mangold astutely pointed out that Uzbekistan holds the necessary raw materials and possesses an educated population, rendering it a prime candidate for industrialization. Drawing a parallel to the success of textile workers in Baden-Württemberg, he encouraged German businesses to explore the Technopark in Tashkent to witness firsthand the positive transformations happening within Uzbekistan’s manufacturing sector.
In light of Europe’s aging workforce, Mr. Mangold advocated for young people from Central Asia, like Uzbekistan, to be granted opportunities to train within the EU for a period of four to five years. Ultimately, these individuals would return to their home countries, equipped with invaluable skills and knowledge. He stressed that this is not a problem for Europe but rather a unique opportunity that EU migration policy should adapt to accommodate.
Dietmar Krissler from the European External Action Service reaffirmed the significance of EU-Uzbekistan relations, extending beyond their economic implications. In terms of stability and security, Uzbekistan holds a strategic position as a vital partner. Open to international collaboration, the country recognizes the importance of maintaining historical relationships with countries including Russia and China. Mr. Krissler emphasized the EU’s commitment to upholding human rights and the rule of law.
European Commissioner for International Partnerships, Jutta Urpilainen, expressed admiration for Uzbekistan’s efforts to enhance cooperation and transport connections within its region. These initiatives align with the EU’s focus on the Middle Corridor trade route network, which aims to optimize trade between Asia and Europe. Uzbekistan aims to improve its railway network and has seen a three-fold increase in freight shipment by truck over the past two years. Enhancing customs cooperation and digitization are areas of prioritization to further streamline trade.
Kodirjon Norov, from the Avesta Investment Group, highlighted Uzbekistan’s unique position as one of the few remaining countries ripe for privatization. With 620 government-controlled enterprises, many opportunities for privatization remain untapped, extending beyond small-scale enterprises like retail pharmacies.
Esfandyar Batmanghelidj, representing the Bourse and Bazaar Foundation, labeled Uzbekistan as a “frontier market,” attracting investments from a range of regions. While EU businesses are not yet the most active investors, others, including those from post-Soviet states and the Middle East, are capitalizing on the opportunities available within Uzbekistan. Golib Kholjigitov, part of the Foreign Investors Council, highlighted the growing international interest in Uzbekistan, with a particular emphasis on Europe and China.
Despite ongoing issues related to enforcement of sanctions against Russia, EU-Uzbek trade relations remain strong. The EU’s Generalized System of Preferences ensures that nearly two-thirds of Uzbekistan’s exports to the EU are tariff-free. However, there is still progress to be made, as only one Uzbek wine has been granted protected geographical status in the European market.
Market Capital Research 