American-Uzbekistan Chamber of Commerce
Week in Review:
October 12, 2012 - October 19, 2012

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In This Issue:
Ministerial Meeting Held in Almaty During TIFA
Uzbekistan plans to increase cotton-fiber processing up to 70% by 2015
Uzbekistan to supply 3,300 automobiles to Azerbaijan
Uzbekistan, U.S. to discuss supply of goods to Afghanistan
China starts work on third West-East gas pipeline

Established in 1993, the American-Uzbekistan Chamber of Commerce (AUCC) is a private, non-profit trade association representing interests of U.S. businesses ranging in size from small private enterprises to large, multinational corporations conducting business in Uzbekistan.

Our Mission: To advocate the views of the business community to ensure that private sector positions are considered during the development of key policies that impact American businesses and the future of U.S.-Uzbekistan relations.

Our Objective: To serve the needs of its members by strengthening commercial relations between the United States and Uzbekistan.   


A ministerial meeting within the Trade and Investment Framework Agreement (TIFA) is taking place in Almaty on Thursday, the Kazakh Ministry of Economic Integration press service reported.
'Discussion of trade bodies, investment activities, transit in Central Asia and Afghanistan and TIFA working group issues as well as Kazakhstan's joining the WTO is planned within the meeting', the report says.
The Kazakh delegation is headed by the Minister of Economic Integration Zhanar Aitzhanova, the American delegation is chaired by US Trade Representative for South and Central Asia Michael Delaney, Turkmen Republic by the Economy and Development Minister Bashimmurad Khodjamammedov and Kyrgyzstan, Tajikistan and Afghanistan are represented by their deputy ministers of economy and trade. The head of Uzbek delegation is the First Deputy Minister of Foreign Economic Relations, Investments and Trade Akmal Kamalov.
Bilateral meetings between the US and Central Asia delegations took place in advance of the meeting. A decision on the creation of a working group on trade and investments for further strengthening trade and economic cooperation was made during the meeting of Minister Zhanar Aitzhanova with the US delegation.
Moreover, the American delegation supported Kazakhstan's joining the WTO and gave assurances that the negotiations will be completed by the end of the year.
The Trade Investment Framework Agreement was signed in 2004 in Washington between the USA and Central Asia states.
TIFA provides a forum to enhance the trade and investment relationships between the US and five Central Asian nations: Uzbekistan, Kazakhstan, Turkmenistan, Kyrgyzstan and Tajikistan. The agreement is designed to build trade and investment ties both with the United States and across the region.
The main goals of TIFA are the development of trade-investment policy at bilateral and regional levels and the broadening of member states private sector participation in the development of trade-investment cooperation and action plans for the settlement of practical issues, such as acceleration the passage of goods through the customs border, valuation of goods, removal of trade barriers, tariff policy issues and the protection of intellectual property.

Uzbekistan is planning to increase the volume of internal cotton-fiber processing up to 70% in next three years, Prime Minister of Uzbekistan Shavkat Mirziyayev said at the opening the Eighth International Uzbek Cotton and Textile Fair in Tashkent.

The Eighth International Uzbek Cotton and Textile Fair started its work in Tashkent on 17 October. Over 1,000 foreign companies, working in cotton and textile industry, from 38 countries are participating at the event.

Shavkat Mirziyayev said that Uzbekistan produces 3.5 million tonnes of raw cotton in average and 1.1 million tonnes of cotton-fiber, as well as 1.7 million tonnes of cotton seeds. Main buyers of the Uzbek cotton are Bangladesh (39%), China (13%) and South Korea (7%).

He said that over 2,200 enterprises registered in light industry of Uzbekistan. He said that over 280 enterprises on processing cotton fiber with capacity of over 400,000 tonnes work in the country. He said seventeen enterprises were launched in the past period of 2012.

Mirziyayev said that Uzbekistan develops such industries as silk-weaving, carpet production, knitwork and ready-made garments production, ready fabrics, and hosiery along with launching new cotton-fiber processing capacities.

According to him, total sum of attracted foreign investments to development of textile industry of Uzbekistan made up about US$2 billion. This year, foreign investments for US$100 million were attracted. The investment helped to organize production of high quality products, including yarn, fabrics, silk, knitwork, which are highly demanded in the world market.

Shavkat Mirziyayev said Uzbekistan plans annually increase the volume of production of textile products by 20% and exports - by 10%.

He said that in next three years it is planned to increase cotton processing volume up to 70% due to launch of new capacities.

Uzbek Prime Minister noted that the country also pays attention to increasing exports geography along with expanding processing capacities. He said that Uzbekistan plans to increase exports to those countries, where there is high demand for the Uzbek cotton-fiber.

According to the Ministry of Foreign Economic Relations, Investment and Trade of Uzbekistan (MFERIT), the country plans to decrease exports of cotton-fiber from 620,000 tonnes in 2011/2012 season to 600,000 tonnes in 2012/2013 season due to increasing internal processing.

MFERIT said that the capacity of cotton-fiber processing will grow by 50,000 tonnes till the end of 2012 to 450,000 tonnes.

In 2011-2015, Uzbekistan plans to attract US$1.7 billion to textile industry and implement 55 investment projects, which will allow to increase the volume of internal processing of cotton-fiber from 40% in 2012 to 70% in 2015.   


Uzbekistan will export 3,300 automobiles to Azerbaijan in next several years. This was announced at the Uzbek-Azerbaijani business forum, which was held in Baku on 11 October 2012.

According to official data, some 100 representatives of Azerbaijani companies participated at the business forum.

At the forum, it was stated that modern cars of GM Uzbekistan, produced under Chevrolet brand, are highly demanded in Azerbaijan.

It was noted that 4,500 cars of Uzbek plant were sold in Azerbaijan in last five years and agreement was reached to deliver 3,300 more cars to the country in next three years.

It is also planned to hold a presentation of Cobalt, new model of GM Uzbekistan, in Baku in near future. Negotiations on holding of the presentation are underway.   


General William M. Fraser III, current Commander of the United States Transportation Command (USTRANSCOM) will hold consultations with government representatives in Tashkent on Oct.17, U.S. Embassy said.

The visit's schedule envisages a meeting with Foreign Minister Abdulaziz Kamilov and Defence Minister Kabul Berdiyev, during which there will be discussions of issues relating to the Northern Distribution Network, through which goods are transported through Uzbekistan to Afghanistan.

In March this year, Uzbekistan and the United States signed an intergovernmental agreement on the air transit of U.S goods and personnel across Uzbek territory as part of the efforts to ensure Afghanistan's security and restoration.

In June, the Legislative (lower) Chamber of the Uzbek parliament and in August - Uzbek Senate (upper chamber of parliament) ratified the agreement.

According to the agreement, the transit is implemented using Uzbek special air corridors for this purpose without making intermediate stops in the country unless under an emergency situation on board and, or a force majeure preventing the transit.

The agreement will remain in force for one year and is automatically renewed for a subsequent one-year period.

China National Petroleum Corp (CNPC) started on Tuesday construction of a third cross-country gas pipeline, the Xinhua news agency said, a project estimated to cost 125 billion yuan ($19.93 billion) and aimed at boosting gas imports from central Asia.
The third West-East pipeline, which will span more than 5,000 km starting from the northwestern border in Xinjiang to Fujian province in the southeast, will have a capacity to transport 30 billion cubic meters (bcm) per year.
Construction of the pipeline, which will be linked to the central Asia pipeline, is due to be completed in around 2015 using gas pumped in from central Asia, local media said.
Construction progress of the gas pipelines are closely watched by industry participants, as they play an important role in China's ability to boost its gas consumption in its overall energy mix.
The surge in gas imports from central Asia has also contributed to an impasse in gas pipeline talks between Russia and China, through which Moscow had hoped to sell 68 bcm of gas per year.
China's first West-East pipeline has an annual capacity of 17 bcm and the second West-East pipeline has a capacity of 30 bcm.
China, the world's largest energy consumer, will secure around 30 percent of its natural gas consumption from imports this year, up from just 5.85 percent in 2007, Liu Tienan, head of China's National Energy Administration (NEA), was quoted by local media quoted as saying. $1 = 6.2707 Chinese yuan)

The American-Uzbekistan
Chamber of Commerce
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Washington, DC 20005
phone: 202.509.3744
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