By Diplomacy Journal Lee Kap-soo

The following article was contributed by the Embassy of Uzbekistan in Seoul to Diplomacy Journal for publication. –Ed.

In recent years, Uzbekistan and the European Union have been steadily expanding their trade, economic, investment, and financial-technical cooperation. The most active bilateral engagements across various levels have taken place over the past eight years, driven by the focused policy of the President of the Republic of Uzbekistan, Shavkat Mirziyoyev.

Strengthening political dialogue and supporting reforms have become key pillars of both bilateral and multilateral cooperation. Today, both sides grant each other most-favored-nation status, covering customs duties and fees, direct and indirect taxes on imports, and the rules regulating the sale, purchase, transportation, distribution, and use of goods in domestic markets.

Uzbekistan is deepening ties with both EU institutions and key EU member states. In recent years, high-level engagement with major EU countries has increased significantly. President Mirziyoyev has paid official visits to France, Germany, Hungary, and Italy. Comprehensive cooperation programs have been adopted, involving the implementation of major joint projects with leading companies from these countries.

Under these agreements, active work is underway in areas such as automotive manufacturing, agriculture, the chemical industry, exploration and extraction of mineral resources, green energy, pharmaceuticals, aviation, the production of building materials and electrical equipment, education, IT, and many others.

High-level initiatives are becoming reality.

In November 2024, Tashkent hosted the European Economic Days, organized by the European-Uzbek Association for Economic Cooperation (EUROUZ). The event brought together over 300 representatives from the government and business communities of Uzbekistan and the EU to strengthen partnerships and create new business opportunities. Discussions focused on increasing trade turnover, developing cross-border transport corridors, and launching joint projects across various sectors.

On November 6, 2024, as part of the European Economic Days, Uzbekistan and the EU signed a Roadmap for implementing the Memorandum of Understanding on a Strategic Partnership in Sustainable Supply Chains for Critical Raw Materials. The document outlines the integration of production and supply chains, attracting investments, and developing environmentally sustainable sources of raw materials.

Uzbekistan and the EU have also begun joint work on projects aimed at improving internet connectivity across Central Asia. Initiatives such as “Connecting Central Asia” (C4CA) and “Satellite Connectivity for Remote Communities of Central Asia” aim to enhance digital infrastructure, provide high-speed internet access to remote areas, and reduce the digital divide in the region.

Trade

Trade relations between Uzbekistan and the EU are based on a thorough analysis of production capacities and a joint effort to harness existing potential. On April 10, 2021, the European Union granted Uzbekistan beneficiary status under the Special Incentive Arrangement for Sustainable Development and Good Governance (GSP+) as part of the Generalised Scheme of Preferences (GSP). This removed customs duties on 6,200 product categories, opening up new opportunities for boosting exports and attracting additional investment into the country’s economy.

As a result, the EU has become Uzbekistan’s most significant trade partner. While bilateral trade stood at around $2 billion in 2016, it has shown steady annual growth since 2017: reaching $4.4 billion in 2022, $5.8 billion in 2023, and already hitting $6.4 billion in 2024.

Uzbekistan’s main EU trading partners include Germany, Lithuania, France, Italy, the Netherlands, Poland, Latvia, the Czech Republic, Spain, Hungary, and Austria.

Investment Cooperation

In recent years, engagement between the business communities of Uzbekistan and the EU has intensified, along with the participation of EU companies in large-scale investment projects within the country.

Today, over 1,000 enterprises with European capital operate in Uzbekistan, implementing an extensive portfolio of investment projects worth more than €30 billion.

These include world-renowned companies such as EDF, Total Energies, Voltalia, Airbus, Suez, Orano, Linde, Siemens Energy, Knauf, OTP Group, MOL Group, and Lasselsberger Group. These companies are actively involved in major projects, bringing new technologies, expertise, and innovation to a wide range of industrial sectors in Uzbekistan.

The EU also provides technical support for Uzbekistan’s accession to the World Trade Organization, further integrating the country into the global economy.

The pace of cooperation continues to accelerate. In 2024, Uzbekistan and the EU signed a Roadmap on Strategic Partnership in the Sphere of Critical Raw Materials. The document outlines the integration of production and supply chains, investment attraction, and the promotion of environmentally sustainable sources of raw materials.

The significance of this partnership is underscored by high-level attention. For instance, during the European Economic Days in Tashkent, President Shavkat Mirziyoyev addressed the participants, expressing confidence that the conference would make a meaningful contribution to developing trade and investment ties with Europe.
The event brought together over 300 representatives from government and business in both Uzbekistan and the EU, aiming to identify key areas for further strengthening partnerships and creating new opportunities for direct business cooperation.

Prospects for Signing the Enhanced Partnership and Cooperation Agreement (EPCA)

In March 2025, it was announced that Uzbekistan and the EU plan to sign a new Enhanced Partnership and Cooperation Agreement (EPCA) in the first half of the year. This new agreement is expected to replace the 1999 Partnership and Cooperation Agreement, reflecting the shared ambition of both sides to deepen and broaden their bilateral relations.

Once the agreement enters into legal force, economic ties between Uzbekistan and the EU will reach a qualitatively new level. This will be reflected in the number and scope of joint trade and investment projects, further contributing to Uzbekistan’s sustainable integration into the international community.

Outlook and Future Prospects

The partnership between Uzbekistan and the European Union goes far beyond traditional economic cooperation. It serves as a real platform for innovative growth, sustainable development, and regional stability. Given their shared values, strategic interests, and the dynamic nature of political dialogue, it is safe to say that Uzbekistan and the EU are in step with the challenges of the times — and are gradually building a strong foundation for long-term collaboration based on mutual interest.