Uzbekistan and the EAEU: Prospects and Potential Impact of Economic Integration

Abstract

This report assesses the potential effects of integration of the Republic of Uzbekistan with the Eurasian Economic Union (EAEU), and lists the most promising areas of cooperation between the current Union member countries and Uzbekistan. The authors have examined the key indicators of social and economic development of Uzbekistan and the main areas of trade and investment cooperation between the republic and the EAEU, and have presented an in-depth review of two sectors that are critical for Uzbekistan and for Central Asia as a whole: transport and the water and energy complex. The authors have concluded that, inasmuch as Uzbekistan is a large and strategically positioned Central Asia player, resolution of regional development issues without its participation will not make much progress. Deeper economic integration between Uzbekistan and the EAEU may become a major driver of investment and trade cooperation.

Keywords: Uzbekistan, Eurasian Economic Union, integration, economic effects, mutual trade, investments, infrastructure, water and energy complex, transport, labour migration

JEL Classification: F15, F21, F22, O11, O18, O47, O53