Uzbekistan is planning to increase customs duties for imported products. This is indirectly confirmed by experts and the Asian Development Bank (ADB).

Reportedly, the point of view is widespread among officials, according to which in order to obtain more advantageous positions in negotiations on accession to the WTO, it is necessary to raise customs duties where it is possible.

“Then it will be possible to bargain for more favorable conditions by agreeing to lowering them,” an economist Yuli Yusupov writes.

An expert on WTO issues Umida Khaknazar explained in detail why the increase in tariffs as a “lever for bargaining” in negotiations on tariff concessions in the WTO is unpromising:

“Choosing a strategy of “minimal liberalization” in the negotiation process will not bring the expected concessions, but will only delay time. Uzbekistan officially filed an application to resume the process of accession to the WTO exactly a year ago. The first stage in the negotiation process is the submission of a memorandum on foreign trade regime. The memorandum has not yet been filed, which means that negotiations have not yet been resumed,” Umida Khaknazar writes.

The Asian Development Bank also learned about the desire to increase customs duties, which was mentioned in its recent report.

According to the organization, inflationary pressure in Uzbekistan will continue due to the further rise in prices for electricity and natural gas in June 2019, the subsequent adjustment of wages and pensions and the revision of import customs duties upwards.

Entrepreneurs were encouraged to send their proposals on the rates of import customs duties. It is assumed that in this way it is planned to create conditions for development of export-oriented industries in the country.

Besides, another argument in raising fees is the influx of investment. Supporters of isolationism believe that foreign companies are more willing to invest in Uzbekistan if they know that there are high import duties that restrict competition.

At the time of publication, the final decision regarding fees has not yet been made. Nevertheless, a number of experts have already warned that a possible increase will not lead to anything good.