Country Brief

Uzbekistan is a landlocked, Central Asian nation that shares borders with Afghanistan, Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan. Although relatively well-diversified, exports are comprised mainly of natural resources and low value added goods including cotton, vehicles, copper, petroleum gases, fruits, uranium, fertilizers, and apparel. Moreover, exports are heavily concentrated and the majority of goods are destined for Russia, China, Kazakhstan, and Turkey. The reliance upon natural resources and a few select markets make Uzbekistan vulnerable to volatile price and demand fluctuations.  High value manufactured goods meanwhile are imported, resulting in a large trade deficit. Uzbekistan is not a WTO member, and although it is a CIS member and a party to a few select RTA and PTA agreements, its economic development is hampered by inadequate market access and diversification. In addition, trade is hindered by low productivity, cumbersome regulatory and business environments, limited financial access, and underdeveloped physical and quality infrastructure.