What is the GSP+?
The GSP+ is a special incentive arrangement for Sustainable Development and Good Governance that supports vulnerable developing countries. Next to fulfilling the eligibility requirements of the Standard GSP, GSP+ countries are required to ratify 27 international conventions on human rights, labour rights, environmental protection and climate change, and good governance. In order to ensure effective implementation of the conventions as well as compliance with reporting obligations, the EU engages in monitoring activities with the GSP+ countries. GSP+ beneficiaries can benefit from complete duty suspensions for products across approximately 66% of all EU tariff lines.
At a glance: GSP+ beneficiaries' preferential imports to the EU
35,65 M
Population
Presidential Republic
Government
5.70%
GDP Growth
10.00%
Inflation
$ 80,39 B
GDP
Facts about the Uzbek economy
Cotton Producer
With a production of 621,000 tons (2023), Uzbekistan is the world's 6th largest cotton producer.
Export Products
Uzbekistan's most important export products are gold, refined copper, petroleum gas as well as cotton and other apparel and clothing articles. The most important agricultural products for export, next to cotton, are fresh and dried grapes, apricots, and peaches.
Joining the WTO
In June 2019, Uzbekistan expressed new interest and commitment to join WTO in near future. Uzbekistans Trade with China and Russia accounts for a share of 40,8% of Uzbekistan's total trade, rendering important partners.
Economic Structure
Services account for about 41.5% of Uzbekistan's GDP, followed by industry with a share of 33.4%. Besides the production of cotton and the related textile industry, the food processing industry, metallurgy, machine building and mining are important industries in Uzbekistan.
Preference Utilisation
Uzbekistan has a high preference utilisation rate of 93%.
Trade with the EU
Total trade with the EU amounted to € 4,613 million in 2022, which makes the EU the 4th most important trading partner for Uzbekistan. The EU accounts for a share of 9.4% of Uzbekistan's total trade. More important are regional partners such as China and Russia.
Uzbekistan and the EU (2022)
Imports from Uzbekistan by product section
Imports from Uzbekistan over time (in € m)
UZBEKISTAN AND THE EU’s GSP
Economic Impact
Uzbekistan’s exports of manufactured products such as textiles, chemical products and food products have significantly increased in the last 20 years, indicating increasing export diversification. Nonetheless, commodities remain important for the economy, making it prone to price shocks on international markets.
68%
A very large share of about 68% of EU imports from Uzbekistan is eligible for preferential market access under the Standard GSP.
93%
Uzbekistan has a high preference utilisation rate of currently 93%. In fact, Uzbekistan has the highest preference utilisation rate among all GSP+ beneficiaries, alongside Pakistan.
Preference utilisation and export diversification
Uzbekistan's imports to the EU
Preference Utilisation vs. total eligible imports
Uzbekistan’s preference utilisation rate shows some fluctuations which can be traced back to fluctuations in overall eligible imports. Part of this variability in the usage of preferences can be explained by variations in the use of GSP preferences for mineral imports (S05).
The largest product sections under the GSP
Since 2022 the largest product sections under GSP are chemical products. Fibres and fabrics made of silk, wool, and cotton as well as articles of plastics also represent a great portion of all eligible products. Product sections in which preferences are currently underutilised are mineral products. In these sections, not even 15% of products eligible for preferential market access are imported using GSP preferences. This is also valid for animal and vegetable fats and oils, where currently no preferences are used.
SUSTAINABLE DEVELOPMENT AND MONITORING PRIORITIES
The Republic of Uzbekistan (Uzbekistan) is the newest GSP+ beneficiary. The significant opening and reform efforts since 2016 have had overall a positive effect on compliance with international standards. The Uzbek authorities have positively engaged with GSP+ and the commitment to effectively implement the relevant international conventions. Shortcomings, nonetheless, remain and worrying backtracking has been noted particularly in civil and political rights. These issues will have to be addressed to ensure Uzbekistan continues to comply with GSP+ requirements.
Monitoring priorities during the reporting period 2024-2025
Civil society space, freedom of expression and association
Eliminating torture and ill-treatment
Aligning criminal code to international norms
Non-discrimination
Addressing gaps in the Labour Code
Child and forced labour monitoring
Labour inspection
Environment and climate conventions
Combatting corruption
For the reporting period 2024-2025, the EU has focussed its monitoring activities on nine priority areas. Civil and political rights issues will have to be addressed to ensure Uzbekistan continues to comply with GSP+ requirements.
EU-Uzbekistan Bilateral Development Assistance
DG INTPA
Access all info about EU-Uzbekistan relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/uzbekistan_en
Opportunities in Uzbekistan
- The IMF projects continued economic growth with rates of about 6% in the medium term
- The overall export business substantially increased in recent years. From 2018 to 2019, overall exports from Uzbekistan increased by 80%
- Uzbekistan in centrally located in Central Asia and functions as a transport hub for the wider region.
- Uzbekistan possesses large reserves of natural resources including minerals and has untapped potential in the agricultural sector
- Uzbekistan is the most densely populated country in Central Asia which implies a large supply of local workforce and, at the same time, suggests potential on local markets.
- There is growing demand for environmental technology, including water, wastewater, energy efficiency and renewable energy technologies.