Imports - The Times Of Central Asia

Viewing results 1 - 6 of 22

Cotton

Uzbekistan Targets Premium Global Brands with U.S. Cotton Imports

Uzbekistan, one of the world’s largest cotton producers, may begin importing cotton from the United States, a move that has prompted public debate. Inomjon Abdurakhmonov, Head of the Foreign Trade Department at the Ministry of Investment, Industry and Trade, explained that the decision is aimed at helping Uzbekistan secure a foothold in premium global markets and boost the reputation of its textile exports. A rapidly growing textile sector Over the past seven years, Uzbekistan’s textile industry has expanded dramatically. Since 2017, cotton yarn output has more than doubled from 412,000 to 970,000 tons, knitted fabric production has risen from 68,000 to 312,000 tons, and ready-made garment output has jumped from 960 million to 3.1 billion pieces. Exports have grown from about $1.1 billion in 2016 to $2.8 billion in 2024. This growth stems from a deliberate policy shift away from exporting raw cotton in favor of domestic processing. Today, 100% of the national harvest is used locally, feeding factories that now export finished goods to more than 50 countries. Why import cotton? Abdurakhmonov emphasized that imports would supplement, not replace, domestic supply. “Uzbek cotton is fully consumed domestically, but our factories still operate at about 75% capacity,” he said. “Premium-grade imports allow us to expand production and meet the strict quality standards of top global brands.” Similar strategies are used by other textile leaders such as Turkey, India, Vietnam, and China, all of which import high-grade cotton to meet market requirements. The U.S. advantage The plan focuses on importing Strict Middling, a high-grade U.S. fiber recognized for its consistency, strength, and sustainability credentials under the U.S. Cotton Trust Protocol. “For major brands like Levi’s, Ralph Lauren, Puma, and Gap, ‘Made with U.S. Cotton’ is not optional, it’s a prerequisite,” Abdurakhmonov explained. Such quality cannot easily be replicated in Uzbekistan’s climate, and producing comparable fiber locally would take at least five years. Financing the imports Purchases will be supported by the U.S. Department of Agriculture’s GSM-102 program, which offers credit guarantees and deferred repayment terms of 12-18 months. This allows Uzbek manufacturers to sell finished goods before paying for the raw cotton, covering up to 98% of the deal value. Long-term benefits While U.S. cotton costs 15-20% more than domestic fiber, it will be used selectively for contracts where premium quality is mandatory, with higher margins offsetting the expense. Beyond immediate production gains, Uzbekistan aims to enhance its global textile reputation and strengthen its position in supply chains. Preferential access under the EU’s GSP+ system has already nearly doubled exports to Europe, from $74 million to $140 million and similar results are expected from U.S. partnerships. “Importing U.S. cotton is not about shortages, it’s about credibility,” Abdurakhmonov said. “This strategy will secure our place in premium markets and create long-term opportunities for our economy.”

Pharmaceutical Business

Tajikistan’s Pharmaceutical Sector Remains Heavily Dependent on Imports

Despite possessing vast reserves of medicinal plants, Tajikistan's pharmaceutical industry remains heavily reliant on imports. Experts are increasingly questioning why the sector has been reduced to a basic "buy-and-sell" model and what is hindering the use of the country’s natural resources. Abundant Resources, Limited Output Tajikistan is home to more than 3,500 species of medicinal plants, including licorice, mint, valerian, chamomile, motherwort, and even rare saffron. However, this natural wealth has not translated into pharmaceutical independence. In the past two years alone, Tajikistan has imported roughly $84 million worth of medicines. Currently, 67 pharmaceutical companies are registered in the country, producing around 600 types of drugs. Still, imported pharmaceuticals dominate the market. According to industry observers, the sector has evolved into a retail-focused trade, rather than a hub for research-based production. During the Soviet era, pharmaceuticals in Tajikistan were closely integrated with scientific institutions. Research institutes flourished, pharmacies compounded custom medications, and both training and quality control were rigorous. Following the collapse of the USSR, this infrastructure disintegrated. The responsible state committee was dissolved, and a previously regulated system was replaced by an unstructured market. Today, training programs are often accelerated, pharmacists’ qualifications are inconsistent, and the emphasis has shifted from treatment to sales. A Pharmacy That Heals Amid this decline, one notable exception is found in the city of Isfara, where a phytotherapy department has been established at the local hospital. Spearheaded by pharmacist Abubakr Faiziev, the department operates out of a restored facility where locally gathered herbs are used to produce traditional infusions and decoctions. Faiziev personally collects about half of the ingredients. “It is important to me that the pharmacy heals, not just sells,” he said. According to Faiziev, approximately 80% of patients return for follow-up treatment, often bypassing conventional doctors due to the perceived effectiveness of herbal therapies, a sentiment echoed even among members of the local elite. A Science in Decline Faiziev laments the erosion of scientific ambition in the country. "People now ask for business plans and guaranteed profits instead of pursuing knowledge. But science doesn’t work that way," he said. Research, he noted, has become sporadic and often relies on outdated data, with little interest from private companies in investing in innovation. Young professionals, too, are increasingly opting for commercial routes. “They prefer to open pharmacies for fast income rather than engage in research,” he explained. “There are many pharmacists now. But we must transform quantity into quality. Without passion for the profession, one cannot become a skilled expert.” The State’s Role and Untapped Potential President Emomali Rahmon has repeatedly stressed the need to develop the domestic pharmaceutical industry and better utilize Tajikistan’s natural resources. Ongoing reforms include updates to medical university curricula, the opening of laboratories, and the training of technologists and quality control specialists. Yet, experts argue that without a comprehensive, systematic strategy and active engagement from the private sector, these measures are insufficient. Faiziev advocates for the creation of a pharmaceutical technology park and the development of both the domestic...

Imports

Kazakhstan Limits Duty-Free Smartphone Imports to Two Per Person Annually

Kazakhstan's Ministry of Finance plans to amend regulations governing the volume of goods citizens may import for personal use without paying customs duties. According to a draft order published on the Open NPAs (Normative Legal Acts) website, individuals will be allowed to bring in no more than two new smartphones and two new tablets per year, duty-free, from outside the Eurasian Economic Union (EAEU). The proposed changes, open for public discussion until April 22, also cap duty-free imports at one new laptop, one new bicycle, one baby stroller, and one car per person annually. All restrictions apply exclusively to newly manufactured goods in factory packaging. Used versions of these items, except for cars, will not be subject to quantity limits. Additionally, individuals may import up to five pieces of jewelry and one item of fur clothing (including headwear) per year, provided each item differs by name, size, or style. These restrictions are part of a broader effort by authorities to curb the illegal import and resale of consumer goods, especially smartphones. As The Times of Central Asia reported earlier this year, Kazakhstan intensified efforts in March to clamp down on the smuggling of smartphones into the domestic market. The new limits on personal-use imports are a key part of this crackdown. However, questions remain as to why the regulations do not cover used smartphones, which are also commonly trafficked through unofficial channels.

U.S. Tariffs

Trump’s Tariff Blitz Targets Global Imports, Kazakhstan Faces Harshest Impact in Central Asia

U.S. President Donald Trump has announced sweeping new tariffs on all goods imported into the United States, citing the need to protect American industry and jobs. Speaking at a White House press conference, Trump outlined a base tariff rate of 10% that will apply to 185 countries. However, several nations and blocs face significantly higher rates: China will see a 34% tariff, the European Union 20%, Switzerland 31%, and Israel 17%. The steepest tariffs were imposed on Vietnam (46%), Cambodia (49%), and Laos (48%). Notably absent from the list are Russia, Belarus, Mexico, Iran, Canada, and Belarus. Ukraine, however, will face the base 10% rate. Kazakhstan Hit with 27% Tariff The new U.S. duties also target Central Asian nations. According to a comparative chart published by the White House, Uzbekistan, Turkmenistan, Tajikistan, and Kyrgyzstan will face 10% tariffs on their exports to the U.S. Meanwhile, Kazakhstani goods will be subject to a much higher rate of 27%. The White House document notes that Kazakhstani imports currently face a 54% tariff in Kazakhstan, figures that surprised local analysts, who have questioned the methodology behind the calculations. The rationale for the elevated rate on Kazakhstan remains unclear. However, the country's Ministry of Trade and Integration has initiated consultations with his U.S. counterparts to explore options for exempting certain goods. According to a preliminary analysis, many of Kazakhstan’s key exports fall under exceptions outlined in U.S. regulations. “In 2024, trade turnover between Kazakhstan and the United States amounted to $4.2 billion,” the ministry stated. “Kazakhstan's primary exports to the U.S. - crude oil, uranium, silver, and ferroalloys - constitute 92% of total exports and are included in the exemption list under the U.S. President’s decree on reciprocal tariffs.” Turning Tariffs Into Opportunities Despite the steep new tariffs, some experts believe the impact on Kazakhstan will be limited. Financial analyst Rasul Rysmambetov argues that Kazakhstan’s marginal role in global trade dynamics shields it from major economic fallout. “The real battle is between the U.S. and the world’s largest economies, China and the EU,” Rysmambetov wrote on his Telegram channel. “Our trade with the U.S. accounts for less than 1% of Kazakhstan’s total foreign trade. Even with a 27% tariff, the effect will be negligible.” Rysmambetov noted that Kazakhstan exported over $2 billion worth of goods to the U.S. in 2024, while imports totaled $1 billion, maintaining a trade surplus for the tenth consecutive year. “We’re on the tariff list, but it’s mostly symbolic,” he added, emphasizing that Kazakhstan’s exports largely consist of strategic materials. Rysmambetov also sees potential upsides: countries facing new duties may seek alternative markets, possibly offering Kazakhstan better terms on imports such as equipment, metals, vehicles, and construction materials. “Global trade tensions can open windows of opportunity, for strategic borrowing, better equipment deals, and expanded exports. But quick action is key,” he concluded. International Backlash The U.S. move drew swift condemnation from European Commission President Ursula von der Leyen, who called the policy a “severe blow to the global economy.” “Uncertainty will...