Egamberganov Jahongir Kadambaevich
Tashkent State University of Economics
3nd year student of the Faculty of Corporate Governance.
https://doi.org/10.5281/zenodo.8273176
Qabul qilindi: 22.08.2023
Crossref DOI: 10.24412/cl-37059-2023-08-95-99
UDK: 339.5
Annotation: The article examined such issues as the parameters of foreign trade of Uzbekistan, comparative analysis with neighboring and developed countries and the share of exports and imports in foreign trade in previous years.
Keywords:Foreign Trade, consumer market, macroeconomic analysis, import, export, strategic cooperation, GDP, human capital, innovation, logistics, World Trade Organization.
INTRODUCTION.
Nowadays, the level of development of each country is estimated by its macroeconomic indicators. The main issue in the economic policy of each country is macroeconomic stability. In recent years, significant work has been carried out in our country to carry out macroeconomic analysis in a deep and thoughtful way. Foreign trade issues are considered an important component of macroeconomics, and the effectiveness of this sector does not have a positive impact on the entire economic sector –especially since the increase in the share of exports in foreign trade from year to year is assessed as a positive situation in the economic life of our country. The natural economic development of Uzbekistan is great in particular, the land area of our country is the 3rd largest in Central Asia by population. Uzbekistan is a large consumer market for foreign companies and enterprises due to the large population and cheap labor. In addition, our country is geographically located in the heart of Central Asia and, naturally, has great potential in terms of logistics. Nevertheless, many foreign companies, their branches and international banks and organizations, their headquarters for Central Asia, are located in Kazakhstan. The main reason for this is the advance of the economy of Kazakhstan in the years of independence at the expense of oil drilling (which accounts for 60-72% of GDP) and the negative result of economic crises in Uzbekistan. This trend remains today.
Despite the fact that the population of Uzbekistan is almost 2 more than the Republic of Kazakhstan, its Import volume in foreign trade will be 2.4-7 times less than in our country per year. With these analyzes, we can say that Kazakhstan's domestic consumer market is the largest in Central Asia.
Macroeconomic stability is the result of lower economic policy. Therefore, we can positively assess the current economic and policy being carried out in our country. Especially since the economic liberalization of recent years, in particular, it is not for nothing that the dollar conversion, the introduction of clustering methods in the cotton industry, the decree of our president on the “strategy of action” of February 7, 2017, say a new leap forward in economic reform. But it is also known to everyone that a number of problems still have no solution. For example, the large number of state-owned enterprises in the market and their donations from the permanent state threaten healthy competition and economic stability, monopolies in certain market segments (236 monopolists-enterprises), about 83% of state shares in the banking sector, and a number of similar problems awaiting their solution are post factums that slow down economic growth.
Main part: During 2017-2019 our economy achieved an increase of 5-5.4% on average. Foreign trade also saw significant growth in the share of exports. We pay attention to the volume of foreign trade through numbers.
Uzbekistan's main imports in 2017 were transportation needs (5.1% of total imports), electronic techniques and equipment, medicines and medicine, and various non-ferrous and precious metals. It can be seen from this that the monopolist-enterprise in the automotive industry has established a large share in the import structure. In 2017, the main imports in the Republic of Kazakhstan are almost the same as in Uzbekistan.
At the same time, according to the results of a correlation study between trade barriers and duty payments and economic growth conducted in 150 countries during 1995-2015, trade liberalization, accelerating economic growth. As everyone knows, economic barriers are carried out mainly under the protection of monopolists-enterprises or local producers.
The Ministry of investments and Foreign Trade announced the end of 2019 of Uzbekistan's foreign trade activities. It was noted that at the end of 2019, Uzbekistan's foreign trade turnover- $ 42.2 billion, which is 8.3 billion more than in the same period last year. (growth rate – 26.2 percent).
In particular, the volume of exports of domestic goods and services to foreign countries increased by 3.9 billion dollars or 15 percent compared to 2018 and amounted to 17.9 billion dollars. The main share of exports is products made of precious and rare metals ( the share of gold is increasing) - $ 5.1 billion (the share of total exports is 28.5 percent), services - $ 3.6 billion (19.9 percent), energy carriers - $ 2.5 billion (14.1 percent), textiles - $ 1.6 billion (9.1 percent), food products- $ 1.5 billion (8.5 percent), non - ferrous metals and products made from them - $ 951.3 million (5.3 percent), chemical products and products made from them - $ 876.9 million (4.9 percent), ferrous metals and products made from it - $ 349.6 million (2 percent) in contributions. During 2019, 2,700 new enterprises were involved in export activities, thanks to which more than $ 1 billion of additional exports were carried out. In addition, exports of 206 new types of products were mastered to the markets of 42 countries. The Republican import index grew to $ 4.8 bn during the reporting period to $ 24.3 bn, a 25% increase over 2018. But it is also considered an inappropriate practice to influence imports from the outside.
Seeing the foreign trade deficit as a major problem, the policy aimed at restricting imports to lower it is equivalent to the emergence of a problem for the economy that does not actually exist. Because having a deficit does not affect the living standards of society members, but limiting imports directly reduces the living standards.
The composition of imports is mainly equipment - $ 5.6 billion (23.1 percent of the share in total imports), vehicles and spare parts - $ 2.6 billion (10.8 percent), services - $ 2.4. billion dollars (10 percent), ferrous metals and products made from them - $ 2.2 billion (9.1 percent), electrical equipment - $ 1.3 billion (5.5 percent), food- $ 1.2 billion (5.2 percent), energy carriers - $ 928.1 million (3.8 percent), pharmaceutical products - $ 926.8 million (3.8 percent), wood and products made from it - $ 903.7 million (3.7 percent), chemical products - $ 843.5 million (3.5 percent), plastic and products made from it - $ 811.7 million (3.3 percent), etc.
The number of foreign trade partners of Uzbekistan amounted to 178 during the reporting period. Currently, China ($7.6 billion or 18.1 percent), Russia ($6.6 billion or 15.7 percent), Kazakhstan ($3.3 billion or 8 percent), the Republic of Korea ($2.7 billion or 6.5 percent), Turkey ($2.5 billion or 6 percent), Germany ($980 million or 2.3 percent), Kyrgyzstan ($829 million or 2 percent), Afghanistan ($618 million or 1.5 percent) and the United States ($596 million, or 1.4 percent) are the leaders in turnover.
Trade with CIS countries in January-December 2019 amounted to $ 12.2 billion, which is 20 percent more than last year. Russia (54 percent of the total trade with the CIS countries), Kazakhstan (27 percent), Kyrgyzstan (6.7 percent), Turkmenistan (4.4 percent) are the main trading partners. Also, the volume of foreign trade with neighboring countries has grown significantly and amounted to $ 5.8 billion (an increase of 25% compared to 2018), with exports of almost $ 3.2 billion and imports of $ 2.6 billion. During this period, a positive saldo remained in foreign trade.
As the main problems in foreign trade, the restrictions on foreign trade and the numbers that state-owned enterprises in the market have large shares are also confirming. Today, for example, the commodity and financial markets are dominated by state-owned companies 90% of monopolistic-owned enterprises belong to the state share). It is noted that state companies in the form of a State Unitary Enterprise and a subsidiary are forming their own substructures, and they are more than 4 thousand todays. To overcome these problems, several important economic reforms are considered necessary.
To join the World Trade Organization, our country submitted a document to this organization in 1994, but the intended goal has not yet been achieved, although 2 years and 8 months have been enough for the neighboring Kyrgyz Republic to join this organization.
Removal of trade barriers (duties, tariffs, subsidies for local businesses).
Establishment of a reliable law base for attracting foreign investment.
That said, among the 20 major partner countries in foreign economic activity, there is a positive trade in foreign trade turnover (foreign trade balance) with 5 countries - Kyrgyzstan, Afghanistan, Tajikistan, Iran and France. But due to the conditions of the pandemic this year, the volume of foreign trade in January-August 2020 is $ 24.54 billion, which is 3.55 billion less than last year.
CONCLUSION.
Our country is country rich in rich natural resources, human and historical capital. The effective use of these capital will significantly accelerate the development of the economy of our country. As we have seen above, the foreign trade of our country has experienced growth in recent years, and the share of exports in foreign trade is increasing from year to year. But it is no secret to anyone that the problems that are still waiting for their solution are fraught. Liberalization of the economy the removal of obstacles in it (bureaucracy, duties, tariffs) in its place will be an impetus to further revive foreign trade and increase the volume of exports. Our task is to expand the consumer market of our country, create healthy competition in it and limit monopolistic actions. To do this, it is advisable to ensure the rule of law, as well as to properly maintain the economic policy of our country.
REFERENCES.
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https://www.gazeta.uz/oz/2020/04/09/gdp-growth-reduction/
https://kun.uz/uz/news/2019/03/15/ozbekistonda-monopolist-korxonalar-soni-oxirgi-5-yilda-2-barobarga-kamaydi