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 TurkicWorld 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.
