The Senate at its fourth plenary session on May 11 backed Uzbekistan’s joining the Eurasian Economic Union (EAEU) as an observer-state.

In total, 91 out of 100 senators gave their vote, 71 senators voted “in favour”, 16 - “against”, 4 abstained.

The Senate Chair Tanzila Norboeva stated that this important issue had been discussed for two years.

The Chairman of the Committee on International Relations, Foreign Economic Relations, Foreign Investment and Tourism Ravshanbek Alimov noted that the EAEU ranks first in the world in oil and gas production, second in the production of mineral fertilizers, third in the total length of railways, fourth in electricity generation. According to him Uzbekistan’s EAEU joining will help expand export markets, develop cooperation ties, create industry clusters and industrial and trade zones, develop inter-provinces cooperation and facilitate external labor migration.

While he also noted the are disadvantages for the economic sectors of Uzbekistan. “That is due to unpreparednes of a number of our industries, which could lead to a decrease in production, less competitiveness of some of Uzbek products. In addition, there is a risk that this will worsen the trade balance, the balance of payments of the country, and the loss of jobs.

He presented a draft Senate decree approving Uzbekistan’s joining the Eurasian Economic Union (EAEU) as an observer state.

The Chairman of the Committee on Budget and Economic Reforms Erkin Gadoev backed participation as an observer state, in order to better familiarize himself with and analyze all the risks of a possible joining the union, while noting that measures should be worked out to prevent the reduction of customs duties due to the unification of customs legislation and the movement of goods within the EAEU, as well as support for local entrepreneurs, especially small businesses, taking into account the worsening of their financial condition and the negative impact of imported goods on domestic competition.