Uzbekistan Joins CIS Free Trade Zone

by Tatiana Smolenska, Tax-News.com, Moscow

09 January 2014

Uzbek President Islam Karimov has ratified a treaty which makes Uzbekistan the ninth member of the free trade area of the Commonwealth of Independent States (CIS).

Aside from Uzbekistan, the free trade agreement (FTA) includes Russia, Ukraine, Belarus, Kazakhstan, Armenia, Kyrgyzstan, Moldova, and Tajikistan. Kyrgyzstan and Tajikistan have signed but not yet ratified the agreement.

Under the FTA Uzbekistan will not have to pay import duties and tariffs on goods from other CIS countries. The terms of the agreement stipulate that areas of dispute should be resolved through bilateral talks.

Uzbekistan previously resisted joining CIS treaties and has twice withdrawn from the CIS Collective Security Treaty Organization.

However, Uzbekistan's economy is expected to benefit greatly from the FTA as the CIS members are key trading partners. Uzbekistan's trade with Russia alone exceeded USD7bn in 2012.

TAGS: Russia | free trade agreement (FTA) | Kyrgyzstan | tariffs | Armenia | Belarus | Kazakhstan | Moldova | trade | Tajikistan | Ukraine | Uzbekistan