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Economy 04/02/2020 Uzbekistan delegation holds negotiations on duty free trade in US
Uzbekistan delegation holds negotiations on duty free trade in US

Tashkent, Uzbekistan (UzDaily.com) – On 30-31 January 2020, a delegation of the Republic of Uzbekistan headed by Minister of Employment and Labor Relations Nozim Khusanov paid a working visit to Washington to participate in public hearings on Uzbekistan’s compliance with the requirements of the General System of Preferences (SHG) held at the Office of the United States Trade Representative.

According to the Embassy of Uzbekistan in the United States, SHG is a duty-free regime for importing goods into the United States, established in accordance with the 1974 Trade Act in relation to imports from developing countries. Uzbekistan was granted the beneficiary status of SHGs (the right to duty-free supplies to the United States) in August 1994.

On 25 October 2019, the US Presidential Administration decided to end the hearing on the criterion of ensuring the protection of intellectual property rights, initiated in 1999 on the petition of the International Intellectual Property Alliance (IIPA). At the same time, the practice of hearing on the criterion of ensuring the rights of workers (the termination of forced labor), initiated by the human rights organization International Forum for the Rights of Workers (ILRF) in 2012, is still ongoing.

The hearing was chaired by Deputy Assistant Trade Representative Laura Bufo, the SHG Subcommittee in charge of the case included representatives from the Department of State, US Department of Commerce, Finance, Labor, and Homeland Security.

During the hearings, representatives of relevant US departments were informed in detail about the institutional and legal reforms being undertaken in the country aimed at the complete elimination of forced labor. The activities of the National Commission and the institution of the National Rapporteur on combating trafficking in persons and forced labor were explained. Tightening of administrative responsibility, as well as the introduction of criminal liability for violation of the requirements on the inadmissibility of the use of labor by minors and administrative coercion to work was reported. The country’s systematic reforms in agriculture within the framework of the adopted new Strategy for the Development of Agriculture of the Republic of Uzbekistan for 2020-2030, aimed at significantly reducing government involvement in the cotton sector and its pricing, as well as strengthening farmers’ rights in land use, were separately emphasized.

The representatives of the SHG subcommittee were interested in the process of implementing the “roadmaps” regarding the abolition of the system of state orders for cotton, the specifics of the clusters being created in Uzbekistan, the further plans of the state for subsidizing farm activities and other issues.

U.S. Deputy Trade Representative Christopher Wilson praised Uzbekistan’s ongoing reforms to ensure international standards and protect workers’ rights. “Participation in the hearings of such a representative Uzbek delegation once again testifies to the strong political will and commitment of the leadership of Uzbekistan to eliminate factors of forced and child labor. In this regard, we are well aware and support the efforts of your country,” he stressed.

Stating the readiness of the United States to support the aspirations of Uzbekistan to join the WTO, Christopher Wilson noted that the reform processes associated with joining this organization also contribute to the long-term, sustainable development of the labor market of the republic.

As part of the working visit, the delegation of Uzbekistan also held a number of meetings and negotiations in Washington.

The State Department held a meeting with First Deputy Assistant Secretary of State for South and Central Asian Affairs Alice Wells. She praised the continued commitment of the leadership of Uzbekistan to eradicate the problems of human trafficking and forced labor. Welcoming the progress made, she emphasized the importance of enhancing law enforcement and holding perpetrators accountable.

The American diplomat welcomed Uzbekistan’s cooperation with the Cotton Campaign international coalition and active cooperation with civil society institutions, as well as the adoption of the Strategy for the Development of Agriculture for 2020-2030 and measures aimed at phasing out state participation in the cotton sector.

An agreement was reached on the joint implementation of the new financial and technical program "Activities for the Development of Agribusiness" in Uzbekistan, taking into account the main directions of development of the private sector provided for in the Agricultural Strategy.

At a meeting with US Deputy Secretary of Labor Martha Newton, the US side welcomed plans to end the practice of setting mandatory cotton picks, the privatization process, and expanding cluster production in the sector.

Martha Newton noted that her ministry recognized the achievements of Uzbekistan in solving the problem of forced labor. Evidence of this is an improvement in the country’s position in the department’s reports on the worst forms of child labor and the removal of Uzbek cotton from the “list of goods produced using child labor”.

The American side expressed its readiness to provide technical and consulting assistance in the implementation of international standards in the field of labor, as well as advanced training of labor inspectors. The particular relevance of these areas of cooperation in connection with the ratification by Uzbekistan of the ILO Conventions for Labor Inspection in Industry and Trade (No. 81) and in agriculture (No. 129), as well as the development of a new Labor Code of the republic, was emphasized.

Kevin Cassidy, director of the International Labor Organization’s Washington bureau, discussed issues of interaction in the framework of the Decent Work program, as well as the launch of a joint ILO and IMF pilot project to increase social protection of the population.

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