Uzbek expert Yuliy Yusupov underlines the significance of regional integration for the Central Asian countries.
In his interview with OpenAsia (Otrkyetaya Aziya Online), he, in particular, noted that the regional integration will allow Central Asia’s nations getting additional profits from participation in the regional division of labor.
The countries of the region reportedly have huge reserves for the mutually beneficial cooperation based on use of advantages of international division of labor and cooperation.
Secondly, the regional integration will make the countries of the region more attractive for foreign investors. First of all, a good business climate and size of market attract foreign investors. The larger market the more interest of investors, said Yusupov.
Thirdly, the regional integration will allow strengthening competition and thereby create preconditions for improvement competitiveness of Central Asian countries’ products.
The exert notes that many markets of the region are strongly monopolized. Development of regional trade, interstate floating of investment and labor resources as well as other forms of economic cooperation between the Central Asian nations will improve competitive environment inside the national economics and thereby create additional impulses for economic development, Yusupov said.
Asked whether the fact of existence of the Eurasian Economic Union and the idea of the regional economic integration are going well together, the expert noted that on the one hand, participation of some of the countries of the region (Kyrgyzstan and Kazakhstan) in the Eurasian Economic Union (EEU) and motion of others (Tajikistan) towards joining this Union promote removing obstacles on the way of expansion of economic cooperation between these countries, but on the other hand, this can hamper the negation process with the countries that are not members of the EEU, because the EEU member nations are not free in their foreign economic policy any more.
Asked about obstacles impeding further economic integration in the region, Yusupov said, “They are, first of all, tariff and non-tariff obstacles of different kinds. For example, Uzbekistan still uses the so-called excise duties on imported goods. Preferences granted by the governments to domestic producers hamper the competitive environment and put enterprises of neighboring countries at a disadvantage.”
“Besides, visa regime (for example Uzbekistan has imposed visa requirements on nationals of Tajikistan and Turkmenistan) and complicated registration requirements, which are typical for all countries of the region, restrict free movement of people.”
Asked about the possibility of the establishment of the regional economic union in Central Asia, Yusupov said that the establishment of such a union is not indispensable condition for development of the regional integration. “It is also possible to develop it [regional integration] on the basis of bilateral and multilateral negotiations and agreements. It appears unlikely that such a union [regional economic union] will be established in a medium-term prospect,” the expert added.
