Measures to ensure economic stability were discussed

Under the chairmanship of President Shavkat Mirziyoyev, a video conference meeting was held on April 18 to discuss measures aimed at reducing the negative impact of global economic fluctuations on our industries country.

It is noted that the country’s economy is an integral part of the global economic system. Thanks to a balanced foreign policy and the creation of a favorable investment climate, new markets are opening up for entrepreneurs, and the range of products is expanding.

According to Harvard University, over the past five years, Uzbekistan’s position in the Economic Complexity Index has improved by 25 points. National products in 162 types are recognized as having a competitive advantage in the world market.

As a result, in recent years, exports have increased 2.2 times, and the share of foreign trade in gross domestic product has reached 57 percent. This indicates a significant connection of the economy with external markets.

However, the global economic situation is currently unstable. The changing situation, new tariffs and restrictions have a ripple effect on other countries, slowing global economic growth and reducing international trade.

For example, in just a few days, international financial markets lost about $10 trillion. Due to high tariffs, global trade is projected to fall by $3.5 trillion, and global inflation could reach 7.5-8 percent.

The main danger is that, as during the pandemic, disruptions in supply chains and production of high-value-added products could occur around the world. Leading industries such as the textile, electrical, automotive and food industries, which have high export potential, are under threat. This will lead to fierce and uncompromising competition in international markets.

The President emphasized that in these conditions it is necessary to move forward boldly and confidently, relying primarily on our own resources and internal capabilities. It was noted that the heads of ministries, departments and regions must have specific action plans and personally deal with issues of production and export.

The state will take the necessary legal, organizational and practical measures. To this end, meetings were recently held with more than 3 thousand entrepreneurs, where their problems were studied. Most of the questions related to the standardization and certification system.

It was noted that more than 25 thousand standards and 41 technical regulations in force in the country do not comply with international requirements. Outdated regulations and bureaucracy hinder entrepreneurs, creating conditions for corruption. Problems with multiple and duplicative certification continue.

Investors note that local laboratories often do not meet international standards, and foreign standards are not recognized in Uzbekistan. Because of this, exporters are forced to send product samples abroad for certification. The presence of a conflict of interest is also of concern, since certification bodies simultaneously carry out supervisory functions.

At the meeting, it was announced that the President had signed a decree aimed at stimulating business activity and increasing the efficiency of trade and industrial policy.

The decree clearly delineates the powers of technical regulation, sanitary and epidemiological supervision, veterinary and quarantine bodies. Multiple and duplicative procedures will be phased out.

Thus, control over the quality and safety of food products will be carried out exclusively by the Committee for Sanitary and Epidemiological Welfare and Public Health. Mandatory technical regulations and standards for food products are abolished. Sanitary rules and regulations for basic food products will be brought into line with the Codex Alimentarius system of international standards. The practice of state registration of products for 7 groups of high-risk goods is also being cancelled.

The list of products subject to mandatory certification will be reduced and the practice of declaring product conformity will be introduced. When importing equipment, raw materials, special equipment and transport, international quality and control standards recognized in Uzbekistan will be applied, and national certificates will not be required.

The need to adopt the Law “On Market Surveillance” was emphasized. The need to improve the quality of personnel training in the field of standardization, sanitary and epidemiological surveillance and quarantine was also pointed out.

At the meeting, special attention was paid to the issues of supporting local enterprises, expanding production and exports.

According to the mentioned decree, the procedure for determining the customs value of imported products will be fully brought into line with international rules.

From July 1, all restrictions on the export of goods will be lifted with the introduction of export duties on 86 groups of raw materials and socially significant products.

In recent years, the share of production of confectionery and soft drinks in the industry has increased significantly. In order to support these industries, the excise tax on sugar will be abolished and restrictions on the import of milk powder will be lifted.

As a result, the annual turnover of enterprises producing confectionery products and soft drinks and providing employment to about 40 thousand people will reach at least 50 trillion soums.

It is noted that local councils have the right to set increasing coefficients for land taxes and rental payments. However, it is important to consider business opportunities and carefully consider the implications of such decisions. If you reduce the burden on entrepreneurs and promote their development, budget revenues will increase. Entrepreneurs will be allowed to pay these taxes during the year in two stages.

Responsible persons have been instructed to prepare proposals for improving tax and customs policy and administration with the involvement of scientists and entrepreneurs.

It is emphasized that the Prime Minister and his deputies, ministers and khokims must be in constant dialogue with producers and exporters, promptly resolve incoming requests and problems.

Official website of the President of the Republic of Uzbekistan