Tashkent, Uzbekistan (UzDaily.com) -- Undoubtedly, the recent visit of the President of the Republic of Uzbekistan to Germany creates additional opportunities for expanding bilateral cooperation and once again confirms the openness of our republic to foreign investment and international trade.

To date, Germany is the largest trade and economic partner among the EU countries (26% of total trade with the EU). In addition, about 60% of the total investment received by Uzbekistan from EU countries in 2021 is of German origin. In the list of foreign trade partners, Germany ranks 7th in trade, 19th in exports and 6th in imports. At the same time, Germany is one of the main suppliers of machinery, equipment and vehicles and ranks 4th with a share of 7.2% (after China, Korea and Turkey).

In 2022, trade with Germany increased by 51.4% compared to 2021, reaching a record volume of almost US$1.2 billion. Exports grew by 23.1% and imports by 54.3%. Thus, the goal set in 2019 to bring mutual trade to 1 billion euros was achieved in 2022.

Economic contacts between Uzbekistan and Germany are developing dynamically. There is a most favored nation treatment between the two countries. Within the framework of the status of the beneficiary of the “GSP+” granted by the European Union to Uzbekistan, more than 6,000 items of goods are subject to reduced or zero tariffs when they are imported into the EU countries.

A number of agreements have been signed, including on the protection of investments and the avoidance of double taxation, as well as on financial and technical cooperation.

Positive news from the visit is also expected by German companies operating in Uzbekistan. Today, over 200 companies with the participation of German capital operate in the Republic.

Among the largest joint Uzbek-German projects are the production of trucks with the MAN group, the production of agricultural machinery with Claas and Lemken, the production of cable and wire products with Deutsche Kabel, as well as the opening of new factories of Knauf, Papenburg (production of asphalt concrete pavements) and Falk Porsche (production of fiberglass composites and modern energy-saving devices and systems).

As part of his visit to Germany, the President of Uzbekistan held a meeting with the heads of leading companies and financial institutions of Germany.

Opening the meeting with representatives of the business community, Shavkat Mirziyoyev highlighted the high level of trust and mutual respect achieved in relations with Germany. More than 60 projects totaling 5 billion euros are being implemented with the participation of German partners. In recent years, German investments have amounted to 4 billion euros, and the number of joint ventures has doubled.

The event from the German side was attended by the heads of the Eastern Committee of the German Economy, the German-Uzbek Business Council, the German Energy Agency, the heads of about 30 largest companies and banks, such as CLAAS, Knauf, Siemens Energy, Lasselsberger, Aurubis, Linde Group, Gunter Papenburg, Falk-Porsche-Technik, Mangold Consulting, DB Engineering, Landesbank, Commerzbank, KfW Bank, Deutsche Bank and others.

President Shavkat Mirziyoyev noted the readiness of Uzbekistan to become an effective and reliable platform for German business in the new realities of large-scale and serious shocks in the global economy.

We are talking about large-scale projects in the areas of green energy, development of transport infrastructure, metallurgy, water supply, agriculture, chemical, mining, automotive, textile, electrical industries and other areas.

Also, it is planned to expand cooperation in the banking and financial sector, in particular on project financing with such major German banks as Deutsche Bank, Commerzbank, KfW and Landesbank.

In total, as a result of business events, trade contracts and investment and technological agreements were concluded in the amount of more than 9 billion euros.

It should be noted that the potential for further expansion of economic cooperation between Uzbekistan and Germany is far from exhausted. Uzbekistan seeks to attract investments and develop cooperation ties to integrate its manufacturing sector into the global value chains of large German transnational corporations that are creating their production bases abroad.

At the same time, forms of cooperation can exist both in the form of an exchange of experience and technical assistance, as well as the opening by German companies in Uzbekistan of their production facilities, especially in energy, chemical, electrical engineering, construction, automotive, agriculture, food industry and, finally, in transport and logistics.

In this vein, it is important that Uzbekistan is interested in technical support from German partners in expanding Uzbekistan’s export opportunities, as well as in the negotiation process for joining the WTO.

President Shavkat Mirziyoyev noted “Uzbekistan should be associated with a foreign investor, first of all, with stability, reliability and predictability. We are ready to create all conditions for every German businessman to feel free and confident in our country. By combining the advanced developments and innovative technologies of Germany with the resources and human potential of Uzbekistan, we will be able to achieve great results.”

Undoubtedly, the implementation of the agreements reached during the visit contributes to the further expansion and strengthening of bilateral relations, and will also make a significant contribution to the implementation by Uzbekistan of the ambitious tasks of transforming the national economy, taking into account the accumulated practice and experience of Germany.

Chief Researcher

International Institute of Central Asia

V.Shavkiev