On social media and in the media, we often hear about the significant benefits of joining the World Trade Organization (WTO). So, what kind of organization is this?

The WTO began its activities on January 1, 1995. It is the only universal international body coordinating the multilateral trading system between states. Its main tasks are to regulate the transparency of the global economy, facilitate international trade relations, establish equality among them, ensure the stable development of member countries, and improve people’s livelihoods.

Experts emphasize that the WTO serves as a global platform where the interests of each member state are taken into account. Therefore, strong countries that have confidence in their economies strive to join this organization as soon as possible. This is because the WTO is the sole international organization managing the rules of international trade. Agreements within the organization are aimed at assisting producers, exporters, and importers in successfully operating in the global market.

According to information, today the world’s largest economic organization, the WTO, has 166 member countries, which account for almost 97% of global trade and global GDP.

In this context, Uzbekistan’s accession to the WTO will increase the predictability of economic policy and enhance foreign investors’ confidence, ensure free access to external markets, further develop the production of finished products in our country, and strengthen competitiveness.

Recently, the adoption of the President’s decree “On Accelerating Market Reforms and Aligning the National Legislation of the Republic of Uzbekistan with WTO Agreements” has created an important legal framework for these efforts.

The decree sets out several crucial tasks to realize the existing potential of the national economy, deepen its integration into the global production and value chain, expand the application of free market principles, and accelerate Uzbekistan’s accession to the WTO.

According to the decree, starting from January 1, 2025, subsidies and preferences provided to support exports, including income tax on revenues from the sale of goods for export, turnover tax, and partial compensation of transportation costs, will be abolished.

To align the existing customs duties, fees, and values with the requirements of the WTO’s General Agreement on Tariffs and Trade (GATT 1994), the following measures will be implemented:

• Starting January 1, 2025, customs duties introduced will not be collected for fiscal purposes.
• The Customs Committee will submit a draft regulatory legal document to the Cabinet of Ministers by August 1, 2024, on determining the customs value of goods crossing the border.

The Interagency Commission on Cooperation with the WTO (J. Khujayev) will, by August 1, 2024:

• Review and improve the effectiveness of current legislation on applying customs duties to goods produced in or having an undefined country of origin, where the most favored nation (MFN) regime is not applied.
• Submit a draft resolution to the Cabinet of Ministers to align the existing customs tariffs with the 2022 edition of the External Economic Activity Commodity Nomenclature of the Republic of Uzbekistan to improve the effectiveness and transparency of import customs duties.

Conclusion

The process of joining the WTO is rightly under the close attention and strict control of our leadership. This is because Uzbekistan’s membership in the WTO will improve the standard of living of the population, enhance the competitiveness of our national products in global markets, improve the investment climate in our country, and contribute to the stable development of our economy. It will also play a crucial role in creating favorable conditions for international trade entities to conduct business in our country. In this sense, being a member of the WTO means that our country is “open for business.”

Laziza Sherova, Correspondent of “Uzbekistan Voice”.