Tajikistan

Tajikistan is currently a beneficiary of the EU's Standard GSP but has showed interest in joining the GSP+ arrangement in the near future. With a per capita income of $1,161 (2023), the World Bank classifies the country as a lower-middle income economy. In 2023, total EU imports from Tajikistan amounted to a record €174 million. Imports eligible for GSP preferences stood at €22 million in 2023, of which €13 million actually made use of the preferences.

What is the GSP?

The Standard GSP targets developing countries that are classified by the World Bank as lower or lower-middle income countries and which do not have equal preferential access to the EU market through any other arrangement. Standard GSP beneficiary countries can benefit from duty suspension for non-sensitive products as well as duty reductions for sensitive products across approximately 66% of all EU tariff lines.

Tajikistan flag

At a glance: EU preferential imports from Standard GSP beneficiary countries (2023, € million)

group

10.4M (2023)

Population

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Presidential Republic

Government

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8.3% (2023)

GDP Growth

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3.7% (2023)

Inflation

money

$ 12.1B (2023)

GDP

Facts about Tajikistan's economy

Aluminium Industry

Tajikistan is a landlocked country in Central Asia, for which aluminium production is of high economic importance. The aluminium plant owned by the Tajik Aluminum Company is the largest in Central Asia and is also considered one of the largest aluminium plants in the world.

Export Products

Tajikistan’s main export products in 2023 were metallic ores (for example lead, zinc, antimony, and copper), cotton, and aluminium. Electricity from the country's hydropower plants is being exported particularly in the summer months.

Trade Partners

Tajikistan mainly trades with regional trading partners. Russia is the most important partner, accounts for about 24% of Tajikistan’s overall trade in 2023, followed by Kazakhstan, China and Uzbekistan.

Economic Structure

Industry (35% of GDP in 2023), services (34%) and agriculture (23%) are all important pillars of Tajikistan's economy; the latter two employ about 90% of the population. The cultivation of cotton accounts for the largest share of Tajikistan's limited cultivation areas. Wheat, barley, and rice as well as the raising of livestock are additional agricultural activities. Processing the cotton and producing silk are pillars of the manufacturing sector, which is complemented by food processing and metal working industries. Remittances, mostly from Tajiks working in Russia, are extremely important, accounting for 38% of GDP in 2023.

Usage of GSP Preferences

In 2023, 8% of Tajikistan's exports to the EU used the preferences granted under the GSP. The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, stood at 61%.

Trade with the EU

Total trade with the EU amounted to €572 million in 2023. With a share of 7% the EU is Tajikistan's fifth most important trading partner. About 11% of exports go to the EU market.

Tajikistan and the EU

Imports from Tajikistan by product section (2023, € million)

Imports from Tajikistan over time (€ million)

TAJIKISTAN AND THE EU’s GSP

Economic Impact

15%

About one third of Tajikistan's exports are eligible for GSP preferences

85%

With 85%, Tajikistan has the highest preference utilisation rate among all beneficiaries of the Standard GSP, alongside India.

Preference utilisation and export diversification

Tajikistan's imports to the EU

Preference Utilisation vs. total eligible imports

Tajikistan’s preference utilisation rate showed quite some fluctuations until 2015 and remained relatively stable at about 90% thereafter. Base metals dominate overall EU imports from Tajikistan, however, those are not eligible for duty reductions. Apparel and clothing account for about 83% of preferential imports. More than 92% of these imports use the preference granted under the GSP. Some product sections, including for instance machinery as well as fruits and vegetables could make better use of the duty reductions.

The largest product sections under the GSP

Preferential imports from Tajikistan are highly concentrated on apparel and clothing products. Textile articles and fruits and vegetables play only a minor role. Between 2020 and 2022 overall imports of Copper, nickel, aluminium, lead, zinc, tin and similar articles increased substantially, however, the country does not make use of preferential rates. Overall, imports from Tajikistan still leave room for further diversification.

SUSTAINABLE DEVELOPMENT

As a beneficiary of the Standard GSP, Tajikistan is not obligated to ratify any conventions to be able to benefit from preferential access to the European market. Nonetheless, Tajikistan has ratified all 15 core international conventions on human and labour rights. This includes 7 UN human rights conventions and 8 ILO conventions on labour standards. Additionally, Tajikistan has ratified 8 conventions on environmental protection and 4 conventions on good governance aspects. Recently, Tajikistan has expressed interest in joining the EU's GSP+ scheme for sustainable development, which requires beneficiaries to ratify 27 international conventions on human and labour rights, environmental protection and good governance. With the current status of ratifications, Tajikistan already fulfills this admission criteria.

Core international conventions on human rights and labour standards

Ratified

  • Convention on the Prevention and Punishment of the Crime of Genocide (1948)
  • International Convention on the Elimination of All Forms of Racial Discrimination (1969)
  • International Covenant on Civil and Political Rights (1976)
  • International Covenant on Economic Social and Cultural Rights (1976)
  • Convention on the Elimination of All Forms of Discrimination Against Women (1981)
  • Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
  • Convention on the Rights of the Child (1990)
  • Convention concerning Forced or Compulsory Labour, No 29 (1930)
  • Convention concerning Freedom of Association and Protection of the Right to Organise, No 87 (1948)
  • Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, No 98 (1949)
  • Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
  • Convention concerning the Abolition of Forced Labour, No 105 (1957)
  • Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)
  • Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
  • Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No 182 (1999)

Additional Conventions

  • Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
  • Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
  • Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989)
  • Convention on Biological Diversity (1992)
  • The United Nations Framework Convention on Climate Change (1992)
  • Cartagena Protocol on Biosafety (2000)
  • Stockholm Convention on persistent Organic Pollutants (2001)
  • Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)
  • United Nations Single Convention on Narcotic Drugs (1961)
  • United Nations Convention on Psychotropic Substances (1971)
  • United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
  • United Nations Convention against Corruption (2004)

EU-Tajikistan Bilateral Development Assistance

DG INTPA

Access all info about EU-Tajikistan relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/tajikistan_en

Contact points