Tajiks to Face Stiff Competition in Common Market

The emergence of a new trading network in Central Asia will help regulate commercial relationships, open up new markets and develop a common transport network, but NBCentralAsia commentators say Tajikistan could crumple under stiffer competition if major domestic producers are not protected.



Associations of market owners, commercial firms and service industries in Kazakstan, Kyrgyzstan, Tajikistan and the Xinjiang- Uighur Autonomous Region of China signed a trans-Asian cooperation agreement in Dushanbe last week, the Asia Plus new agency reported. They plan to set up a shared network for transporting and marketing goods and to create a centre to encourage better management of manufacturing industries. In the future, they may set up a common freight transport corporation.



NBCentralAsia analysts say joining the new grouping would be good for Tajikistan as it could boost exports, especially of fruit and vegetables. Tajik entrepreneurs could learn new business methods from colleagues in other countries.



Mansur Akramov, deputy director of the state-run Dushanbe Agricultural Services firm, says market owners and large trading centres in the Tajik capital have already made positive noises about the agreement.



“This is something new for our republic. It is a very serious association, with the potential to introduce legislation that works in the interests of its members, the manufacturers,” said Akramov.



An expert with Tojikmatlubot, a consumer union, believes the agreement will give Tajik businesses access to new markets.



“Signing this agreement is a good start. It means we will be able to exchange goods without hindrance. Unfortunately, our republic produces a lot of wool but has no way of processing it, so why don’t we sell it?” he said.



Experts warn, however, that Tajik producers could become uncompetitive in the country’s own markets, especially if there is a flood of cheap goods from China.



According to Nuriddin Kaumov, director of the economics institute, Tajikistan’s poorly structured economy means local producers are not even able to meet domestic needs, and their goods are expensive. Fierce competition from outside may cripple some domestic businesses.



“If the agreement is put into practice, we will have an open market and open competition. We have to think about this seriously so as not to wipe out our local producers,” he said.



NBCentralAsia observers say that because Uzbekistan is the main transit hub for most Tajik goods, participants in the new regional trading network should work on getting that country on board.



(News Briefing Central Asia draws comment and analysis from a broad range of political observers across the region.)