Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth

Figure 5.9: Weighted Average Import Tariffs, Selected Central Asian 
Countries, 2006–2014 
Percent
Uzbekistan
Kazakhstan
Kyrgyz Republic
Tajikistan
0
5
10
15
20
2006
2007
2008
2009
2012
2013
2014

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Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth
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As a result of negotiations under the WTO, the average level of applied tariffs 
has fallen by one-third during 1998–2014 (Table 5.3). Uzbekistan misses the 
opportunity to trade freely with other economies. In addition to tariff cuts, 
WTO members (developed and developing), have implemented duty-free 
and quota-free market access to goods from least-developed economies. 
Table 5.3: Decline in Global Applied Most-Favored Nation Tariffs,
1998–2014 
(%)
Category
Applied Most-Favored Nation Tariffs
Average: 2012–2014
Decrease from 1998*
Agricultural
14.9
2.9
Nonagricultural
8.1
4.1
All
9.0
3.9
Source: WTO (2016).
In addition to high import tariffs, Uzbekistan imposes import-exclusive excise 
taxes and nontariff barriers such as foreign exchange controls, convertibility 
delays, and conformity assessments, all of which interfere considerably with 
trade. While tariffs clearly inhibit cross-border trade, nontariff measures often 
also function as serious impediments to trade. For example, Kee et al. (2009) 
found that in 34 of 78 studied countries, the contribution of nontariff measures 
to the overall level of barriers was higher than that of tariffs. 
Entrepreneurs’ perception of nontariff measures in Uzbekistan is not reported 
in the literature. However, the World Bank (2018) undertook a firm-level 
survey of state support measures demanded by manufacturers. Some of 
the measures include introducing free convertibility for import of inputs, 
abolishing restrictions for firms selling their output to anyone in domestic 
and foreign markets, reducing time and simplifying procedures for issuing 
licenses and permits, and reducing the time needed for getting foreign
exchange convertibility.
5.3.2. Investment and business climate 
Per the World Investment Report (UNCTAD 2018), Uzbekistan attracts the 
least FDI inflows among Central Asian economies (Figure 5.10). The foreign 
exchange, banking, and profit repatriation restrictions, together with the overall 
tough business environment, have caused a number of foreigners to cut back 

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