Newsletter Issue 03 | November – December 2019

Export potential for Uzbek textile and apparel

The manufacture of textile and apparel is among the key sectors of the Uzbek economy. In 2018, it ac-counted for 17% of manufacturing and provided 11% of goods exports. The main destination of Uzbek exports are neighbouring countries. Russia, China, Kazakhstan, Kyrgyzstan and Iran absorb 81% of the sector’s exports.

Against this background, we assess the export potential for Uzbek textile and apparel and identify the most promising products and export destinations. The analysis revealed that Top-5 products with the highest export potential are bed and table linen, woven cotton fabrics, not tufted or flocked carpets, knitted women’s or girls’ suits, and T-shirts.

Under the current trade regime, Russia has remained the most promising export destination, followed by selected EU members, Vietnam, China, India and Ukraine. However, if we assume duty-free access for Uzbek exporters worldwide as a counterfactual sce-nario, we see the increased attractiveness of EU countries. These findings confirm the importance of reforms needed to obtain the GSP+ status in the EU to capture the export potential of Uzbek textile and ap-parel in full.

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