CENTER FOR ECONOMIC RESEARCH

The Transport Sector: Tariff Reductions as a Means to Economic Growth (2013/13)

The shipping costs of entities involved in Uzbekistan’s foreign economic activities range from 15-20 to 60-70% of the value of the cargo for ex-ports (depending on the type of goods), as opposed to 5-7% in the EU countries. The shipping component in the price of the bulk of Uzbekistan’s consumer goods exports is 2.5-2.6 times higher than the world averages.

Given Uzbekistan’s remoteness from international seaways, the costs for shipping exported and imported goods are a critically important factor in securing a competitive position. The second half of the 2000s saw a significant increase in tariffs for trucking and freight rail transportation, and after 2010 there was a sharp jump in the cost of shipping services. High shipping costs, by impacting the final price of goods, may become one of the main obstacles to attracting investments, diversifying the economy and expanding exports.

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