Measures to ensure economic stability were discussed

On April 18, a videoconference was held under the chairmanship of President Shavkat Mirziyoyev to discuss measures aimed at reducing the negative impact of global economic fluctuations on the industries of our country, the press service of the head of our state reports.

It was 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 grown by 2.2 times, and the share of foreign trade in the gross domestic product has reached 57 percent. This indicates a significant connection of the economy with foreign markets.

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

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

The main danger is that, as during the pandemic, supply chains and production of high-value-added products may be disrupted around the world. Leading industries such as textile, electrical engineering, automotive and food industries, which have high export potential, are at risk. 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 should have specific action plans and personally deal with production and export issues.

The state will take the necessary legal, organizational and practical measures. For this purpose, meetings were recently held with more than 3 thousand entrepreneurs, where their problems were studied. Most of the questions concerned 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 meet international requirements. Outdated regulations and bureaucracy hinder entrepreneurs, creating conditions for corruption. Problems with multiple and duplicate certification continue.

Investors draw attention to the fact 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 a 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 entrepreneurial activity and increasing the effectiveness of trade and industrial policy.

The decree clearly delineates the powers of technical regulation bodies, sanitary and epidemiological supervision, veterinary medicine and quarantine. Multiple and duplicate procedures will be gradually abolished.

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. The mandatory nature of technical regulations and standards for food products is abolished. Sanitary rules and norms for basic food products will be brought into line with the Codex Alimentarius international standards system. The practice of state registration of products for 7 high-risk product groups is also abolished.

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 there will be no need to obtain national certificates.

The need to adopt the law ‘‘On Market Supervision’’ is emphasized. The need to improve the quality of personnel training in the field of standardization, sanitary and epidemiological supervision and quarantine is also indicated.

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

According to the aforementioned 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 canceled with the introduction of export duties on 86 groups of raw materials and socially significant products.

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

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

It was noted that local councils have the right to set increasing coefficients for land tax and rental payments. However, it is important to take into account the capabilities of the business and carefully study the consequences of such decisions. If the burden on entrepreneurs is reduced and their development is promoted, 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 was 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.