The last bastion of protectionism in Central Asia: Uzbekistan’s auto industry in post WTO accession

Abstract

This paper examines the auto industry of Uzbekistan and the legal and economic implications of Uzbekistan’s World Trade Organisation (WTO) membership. Uzbekistan’s historically ultra-protected auto industry will eventually face immense pressures from economic actors within and outside its market. Consequently, the State’s only car manufacturer, Uzavtosanoat, may go bankrupt. Therefore, Uzbekistan’s auto industry is in a very precarious position in the prospect of WTO accession. While the WTO accession may give rise to static effects in the short run, it may also result in dynamic effects in the long run. It is vital that the Uzbek government steps into the WTO cautiously in order to avoid any unintended and undesirable economic, social, and/or legal consequences of a WTO membership. This paper argues that smart negotiations require a longer phase-out period for the Uzbek auto industry to remain competitive, at least regionally.