US-Uzbekistan cooperation

The advantageous geographical location of Uzbekistan, its high intellectual potential and rich natural resources, and a stable economy and investment opportunities all work tofacilitate active cooperation between Uzbekistan and some of the most developed states in the world, including the United States.
The United States recognized the independence of Uzbekistan on Dec. 25, 1991, and opened an embassy in Tashkent in March 1992.
Since the dawn of Uzbekistan’s independence, the U.S. administration haspursued five main priorities in the Central Asian region and in Uzbekistan specifically:
•    expand cooperation with Central Asian states to assist coalition efforts in Afghanistan;
•    increase development and diversification of the region’s energy resources and supply routes;
•    encourage political liberalization and respect for human rights;
•    foster competitive market economies and economic reform; and
•    increase the capacities of states to govern effectively.
Trade and Investment
Legal Framework
Trade-economic and investment spheres are considered among the most important areas of strategic partnership between Uzbekistan and the United States. The legal framework of cooperation between Uzbekistan and the United States consists of more than 50 documents, including the Declaration of Strategic Partnership signed in March 2002. The declaration covers not only security and economic relations but also political reform, economic reform and human rights. Uzbekistan has Central Asia’s largest population and is vital to the United States’ regional and international efforts to promote stability and security.
Trade relations, in particular, are regulated by a bilateral agreement which was entered into force on Jan. 14, 1994. The agreement provides for an extension of the most-favored-nation trade status between the two countries. The United States additionally granted Uzbekistan exemption from many U.S. import tariffs on Aug. 17, 1994, under the Generalized System of Preferences (GSP status).
A Bilateral Investment Treaty was signed on Dec. 16, 1994; it was ratified by Uzbekistan and received advice and the consent of the U.S. Senate in October 2000. Economic reforms in Uzbekistan are one of the most important conditions of the treaty’s viability; the country is taking steps to minimize bureaucratic restraints on the nascent private sector.
As a party to theTrade and Investment Framework Agreement (TIFA), Uzbekistan participates in its annual forums. The most recent one was held in Washington, D.C. in late September 2011.
How to Be Partners
Russia and China still stand as Uzbekistan’s most influential trading partners, but trade with the United States is also significant. In 2008, the United States ranked as Uzbekistan’s 10th largest export market and 9th largest source of imports.
The range of goods exported to Uzbekistan include civilian aircraft, aircraft engines and related parts, pharmaceutical preparations, laboratory testing instruments, industrial engines, industrial rubber products, agricultural machinery and equipment, industrial machines, and specialized mining, drilling and oilfield equipment.
In its turn, Uzbekistan exports to the United States uranium, zinc, pharmaceutical inputs, radioactive elements and isotopes.
US-Uzbekistan Business Activity Expands
The past several years have seen a significant expansion of the U.S. and international business activity in Uzbekistan.Examples include General Motors with its assembly plant in Asaka and the newly-built Powertrain facility in Tashkent. A memorandum of understanding has been signed between Honeywell and Uzbekneftegaz. Also, representatives from 3M, General Electric, Hewlett-Packard, Microsoft and a number of other well-known U.S. companieshave had negotiations with officials in Uzbekistan.

Some of the 2011 examples of partnership look encouraging, too. In January theState Property Committee of Uzbekistan issued a license to Ernst & Young to carry out valuation activity in the country. The company carefully followed reforms of the valuation market and came to the conclusion that current legislation in this sector complies with international standards, thus enabling respectable international companies to work in the market of Uzbekistan.Ernst & Young became the first company from the Big Four to open its subsidiary on valuation in Uzbekistan, specifically Ernst & Young Valuation, LLC.

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