CERR: New opportunities for France in cooperation with New Uzbekistan

The conditions created in Uzbekistan through reforms open new opportunities for the diversification and accelerated development of trade and economic relations with France, as emphasized in an analytical article submitted to Dunyo IA by Obid Khakimov, Director of the Center for Economic Research and Reforms (CERR).

"The visit of President of Uzbekistan Shavkat Mirziyoyev to France in November 2022 marked an important milestone in the development of mutually beneficial cooperation between the two countries. The negotiations held at the Élysée Palace, dedicated to the 30th anniversary of the establishment of diplomatic relations, demonstrated a strong commitment to deepening economic collaboration.

The Uzbek-French dialogue continues to gain momentum, with a steady strengthening and expansion of ties in various areas, including economy, culture, and education, opening new opportunities for bilateral cooperation.

The Center for Economic Research and Reforms (CERR) conducted an analysis of Uzbekistan’s trade and economic cooperation with France over the past eight years, as well as an assessment of the potential for further development in this sphere.

The CERR analysis shows that over the last eight years, following the launch of economic reforms in Uzbekistan, trade turnover between Uzbekistan and France has increased 4.4 times, from $257.2 million in 2017 to $1.13 billion in 2024.

After Uzbekistan obtained GSP+ beneficiary status from the European Union in 2021, there has been moderate growth in exports to France of fruit and vegetable products, textiles, carpets, and certain types of electrical goods.

As of 2024, compared to 2023, trade turnover increased by 13.7%, reaching $1.13 billion, with exports totaling $795.1 million and imports amounting to $336.2 million.

Positive dynamics are also observed in French investments in Uzbekistan’s economy. The number of French companies operating in Uzbekistan has almost quadrupled. Currently, about 50 enterprises with French capital are active in Uzbekistan, primarily in the mining and manufacturing industries, energy, construction, agriculture, tourism, and other sectors.

In 2024, the volume of French investments and loans amounted to $36.3 million, while from 2017 to 2024, total FDI and loans from France reached $654 million.

Notably, with French investment, Uzbekistan has implemented a 100 MW solar photovoltaic power plant project in the Samarkand region in cooperation with Total Eren.

Additionally, in partnership with the French Development Agency (AFD), three projects have been successfully completed, while five more are currently under implementation. These include projects within the Green Economy program, aimed at developing the livestock sector and modernizing solid waste management in Samarkand.

Joint geological exploration is also being conducted in promising uranium extraction sites, alongside the construction of a 1,600 MW combined-cycle gas power plant in the Syrdarya region. For example, the French company Orano plans to invest up to $500 million in uranium mining and processing in Uzbekistan.

The reforms undertaken in Uzbekistan have created a favorable environment for the expansion of trade, economic, and investment cooperation between France and Uzbekistan.

Uzbekistan’s economy has become more open and diversified, with a significantly expanded domestic market, active growth in high value-added production, and an expanding private sector, making the country increasingly attractive to foreign partners, including French investors.

The conditions created in Uzbekistan through ongoing reforms open new avenues for diversification and accelerated development of trade and economic relations between Uzbekistan and France. In accordance with the "Partnership and Cooperation Agreement between the Republic of Uzbekistan and the European Union," the most-favored-nation (MFN) trade regime has been established in bilateral trade.

It is crucial to continue efforts to implement the signed agreement with the French side on financing projects under the French Development Agency (AFD) in the livestock sector, waste processing, public utilities, and green energy. Additionally, the Action Plan for the implementation of agreements with representatives of MEDEF International member companies aims to intensify economic cooperation.

One of the key areas of collaboration is the expansion of French business operations in Uzbekistan, particularly in the textile industry and agricultural product processing. There are promising investment opportunities in the food and pharmaceutical industries, agriculture, winemaking, and the development of Uzbekistan’s tourism infrastructure.

Uzbekistan has the potential to increase exports to the French market in key product categories that France imports in large volumes from foreign markets. These include metallurgical, chemical, and textile products, fruits and vegetables (including processed goods), polymers, and specific types of electrical equipment.

The Uzbek side is also keen to attract major French fashion brands such as Chanel, Louis Vuitton, and Kiabi to establish local production facilities and place manufacturing orders in Uzbekistan.

Additionally, there are collaboration opportunities for Uzbekistan’s Textile Technopark with the National School of Textile Engineering (ENSAIT) and the Gemtex Textile Research Laboratory. A new form of economic cooperation between Uzbekistan and France could involve industrial partnerships with French companies such as Michelin, SNF Floerger, Imerys, and Eramet.

Uzbekistan, a country with immense tourism potential and a historical crossroads on the Great Silk Road, continues to attract a growing number of European tourists, with French citizens leading in visitor numbers. There is further potential to increase this flow.

Summing up, it is clear that trade and economic cooperation with France has been expanding and diversifying in recent years, covering an increasing number of sectors. However, despite this progress, there remains vast untapped potential for further growth.

Uzbekistan’s pragmatic foreign policy and economic diplomacy, supported by its status as one of the most stable economies in the region with a promising future, is focused on further strengthening ties with international partners, including France, across all economic sectors".