In recent years, cooperation between Uzbekistan and the European Union has been steadily developing, creating new economic, political, and cultural opportunities. Trade preferences within the framework of the “GSP+” system are opening the way for Uzbek products to enter the European market, contributing to the country’s export potential growth.

The European Union supports the reforms in Uzbekistan in green economy, education, and innovation, aiming to strengthen long-term strategic partnership.

How is trade and economic cooperation between Uzbekistan and the EU developing? In which areas has interaction intensified in recent years? The EU Ambassador to Uzbekistan, Toivo Klaar answered these and other questions.

– Trade relations between the European Union and Uzbekistan have been demonstrating dynamic growth year by year, – says Toivo Klaar. – Against the backdrop of the country’s rapidly growing economy, both exports and imports are increasing. In particular, the introduction of the EU’s ‘GSP+’ system has opened up additional opportunities for Uzbek exporters. As a result, in 2023, Uzbekistan’s exports to the European Union amounted to about 1 billion euros, while imports reached 4.5 billion euros. Among the goods exported from the EU to Uzbekistan, machinery and high-tech products occupy an important place. The range of goods exported from Uzbekistan to the EU has also expanded. Whereas textile products used to be the main export, now pharmaceutical products are also being supplied to the European market. This is the result of the successful implementation of the ‘GSP+’ system, which allows Uzbek products to enter the European market duty-free.

– How does the European Union support economic reforms in Uzbekistan? What are the priority areas in this regard?

– I would highlight three main priorities: first, good governance; second, the transition to a green economy; and third, the agro-industrial sector.

Good governance comes first because it is the foundation of all processes. By good governance, I mean the rule of law, transparent procedures, and a healthy investment climate. Such an environment attracts new investments and gives investors confidence that their assets are protected. That’s why it is the most essential factor. Of course, fighting corruption is also an inseparable part of this process. President Shavkat Mirziyoyev recently emphasized the importance of this issue, and we fully support Uzbekistan in its anti-corruption efforts. This will help bring even more investment into the country.

As for the green economy, water and energy are critical issues. On one hand, Uzbekistan needs to develop new sources of energy. We’ve often heard that this is one of the key priorities of the President’s policy. On the other hand, water is a scarce resource that must be preserved and used efficiently. The European Union is actively cooperating with the Government of Uzbekistan in this area.

Naturally, the agro-industrial sector is also of great importance. Although linked to the two previous areas, it primarily focuses on producing high-quality goods. This matters not only for export but also for domestic consumers. The products they consume should be both high-quality and safe.

– On March 27, a meeting of the ministers of the European Union and Central Asia was held in Ashgabat. The first “Central Asia – European Union” summit was held on April 4 in Samarkand. How did these international events influence regional cooperation in Central Asia?

– This clearly shows how actively our relations are developing. A meeting of the ministers of the European Union and Central Asia was recently held in Ashgabat. At the same time, the EU High Representative for Foreign Affairs and Security Policy, Kaja Kallas, visited Uzbekistan and held an important meeting with the President.

The first “Central Asia – European Union” summit demonstrated the expansion and deepening of our relationship. The EU and Central Asia share common interests on issues such as upholding international law and fulfilling commitments within the framework of the United Nations.

Furthermore, it is important to enhance relations between the two regions, particularly by promoting trade and people-to-people connections. That is why I consider this progress extremely important. We see that the leaders of Central Asia, including President Shavkat Mirziyoyev, are paying close attention to strengthening cooperation among the five countries of the region. We support this and especially emphasize the importance of such regional cooperation.

In Europe, we have many years of experience in developing regional cooperation among countries. Now, we see growing interest in this direction in Central Asia as well. This will increase opportunities for attracting investment to the region. Moreover, it will allow for more efficient use of scarce resources such as water and energy, which I have already mentioned. We aim to share our experience and build on the long-standing cooperation between the European Union and Central Asia.

– In which areas is political and economic cooperation developing within the framework of the strategic partnership between the European Union and Uzbekistan? Could you tell us about new initiatives and projects?

– The most important development is that this year we expect the signing of the Enhanced Partnership and Cooperation Agreement (EPCA) between the European Union and Uzbekistan. This agreement may be signed during President Shavkat Mirziyoyev’s upcoming visit to Brussels. This would be a historic milestone for our bilateral relations.

As I have already mentioned, this agreement will serve as the foundation for a new and expanded partnership. That is the first key point I would like to highlight. The second is Uzbekistan’s accession to the World Trade Organization (WTO). This is a significant goal for the country, and the European Union fully supports this process. Recently, active negotiations on this issue were held in Brussels, and we will continue these discussions to help ensure that Uzbekistan becomes a WTO member as soon as possible.

Of course, I also mentioned the GSP+ system and its benefits for Uzbekistan. Thanks to such agreements, new opportunities are being created across various sectors. I believe these are the directions in which we need to continue working.

– What are the practical results of Uzbekistan’s participation in the GSP+ system? What measures does the European Union propose to support this process more effectively?

– First and foremost, the GSP+ system allows Uzbek producers to export more than 6,000 types of goods to the European market without paying customs duties, which is a significant advantage. However, this opportunity is currently not being fully utilized. Therefore, we need to work closely with Uzbekistan and its government. Only through such cooperation can we ensure that Uzbek entrepreneurs gain the maximum benefit from this system.

Recently, to assess the progress, we discussed this issue not only with government bodies but also with representatives of Uzbekistan’s civil society. The GSP+ system provides a strong platform for the development of the private sector in Uzbekistan and for increasing the export of Uzbek goods to the European Union.

– What specific projects are being implemented within the EU-Uzbekistan cooperation in education, science, and innovation? How would you assess their results?

– The European Union supports many educational institutions in Uzbekistan. Currently, we are working with three agricultural colleges, one college specializing in irrigation, and four teacher training colleges. We are helping to train educators who will possess the knowledge and skills necessary to teach a new generation of students. I believe this is an important area not only for Uzbekistan but for us as well.

In addition, student exchange programs and university collaboration through the Erasmus+ program play a vital role. This program is very popular in Uzbekistan. I have visited various colleges and universities and held meetings with representatives of higher education institutions and ministries. The Erasmus+ program, supported by the European Union, is highly valued, and we hope to further expand our cooperation in the future.

Collaboration in the field of education is a strategically important area for both sides. We are proud to be making significant efforts to support the educational sector in Uzbekistan.

– In your opinion, in which areas would further cooperation between Uzbekistan and the European Union be mutually beneficial?

– The European Union and Uzbekistan are cooperating in several areas. Recently, I visited the Agency for Statistics, where we discussed how the European Union can support the agency and its activities. In addition, we are paying particular attention to issues such as the use of hazardous pesticides, efficient use of energy and water, hydropower, integrated planning, effective urbanization, and spatial development. These are all essential for efficient governance in Uzbekistan.

In the coming years, one of the key areas of EU–Uzbekistan cooperation will be the development of infrastructure that meets the needs of the population – for example, ensuring a synergistic effect between water supply systems, the transport network, road infrastructure, and other critical infrastructure elements. We are ready to cooperate with the Government of the Republic of Uzbekistan in this direction, taking into account its strategic importance for the country’s socio-economic development.

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Interviewed by Nasiba Ziyodullayeva, UzA