Uzbeks Withdraw From Regional Grouping

Uzbeks Withdraw From Regional Grouping

Tuesday, 18 November, 2008
By leaving a regional economic grouping, Uzbekistan is showing its neighbours it would rather go it alone than make compromises in the name of greater integration, NBCentralAsia observers note.



On November 12, the Russian news agency Regnum reported that Uzbekistan had served notice of its withdrawal from the Eurasian Economic Community, EurAsEC, whose other members are Russia, Belarus, Kazakstan, Kyrgyzstan and Tajikistan.



“Round about October 16 or 17, the Uzbek foreign ministry sent an official note to the EurAsEC Secretariat, and Tashkent is now expecting to receive the organisation’s reply as to the procedure for withdrawal by November 25,” said the report.



EurAsEC was set up in 1995 as an initiative by Kazakstan, whose oil wealth makes it Uzbekistan’s chief rival in the struggle for regional leadership. The grouping aims to create the conditions for free trade between member states, set up a Customs Union, and create a common market. The Uzbeks joined EurAsEC in 2006.



NBCentralAsia analysts note that in defiance of agreements signed by EurAsEC members, Uzbekistan has kept strict border-control regulations in place, maintains customs rules that are barriers to free trade, obstructs the free flow of funds, goods and people, and refuses to ratify many of inter-governmental agreements.



Uzbek president Islam Karimov has often said EurAsEC is not a viable structure, and has failed to attend a number of its regional summits.



In mid-September, all the Central Asian members of EurAsEC reached verbal agreement that they would use the region’s water and energy resources to mutual advantage and share out the costs. But the finalised agreement was never approved because of Uzbekistan’s reluctance to do so. For many years, the Uzbeks have rejected a multilateral agreement on the use of water resources that transcend national boundaries.



A month later, on October 10, Central Asian leaders discussed the matter again at a summit in the Kyrgyz capital Bishkek of the organisation. Once again, the Uzbeks ducked out and the agreement remained unsigned.



Commentators say the reason why Uzbekistan is pulling out from EurAsEC is that it finds itself unwilling or unable to fulfil the obligations that come with membership. Domestic factors like the high level of government control, the lack of free market competition, and obstacles to business development make it hard for the country to be part of regional integration.



Tashpulat Yoldashev, an émigré Uzbek political analyst, said that the Bishkek summit saw some tough talking, with other presidents telling Karimov in no uncertain terms that he must open up his country’s borders, take part in joint water and power projects, ensure the free movement of capital, and introduce a unified system of customs duties and taxes.



Yoldashev said there was no way the Uzbek leader could accede to such terms – the economy is so inflexibly managed by the state that it cannot bend to the needs of regional integration.



“For that reason, Uzbekistan found it preferable to isolate itself,” said Yoldash.



Other NBCentralAsia observers see a kind of logic in Uzbekistan’s decision to abandon EurAsEC. Tashkent was never a keen member at the best of times, it has always been suspicious of regional associations and it has preferred to deal with other countries on an individual basis.



One analyst in Tashkent believes that Uzbek authorities were emboldened by the European Union’s decision in mid-October to ease the sanctions it imposed after the 2005 Andijan massacre.



“Recently, Karimov has started to talk about [Uzbekistan’s] energy resources and has indicated he would like to be part of western projects to create alternative pipelines,” said the analyst.



On November 6, for example, the Uzbek president told local journalists that gas exports were to increase from 17 to 25 billion cubic metres a year, adding that the international view of the country’s future as an exporter of fuel was positive. He was speaking during a visit by Bulgarian president Georgi Parvanov, the first European leader to come to Tashkent after sanctions were eased.



Orozbek Moldaliev, who heads the Central Asian Centre for Politics, Religion and Security in Bishkek, argues that the Uzbek decision makes sense since the EurAsEC resembles a political talking-shop more than an effective partnership.



“For instance, there is an impending financial crisis, yet nothing specific has been proposed or approved within the framework of EurAsEC,” said Moldaliev. “So Uzbekistan’s stance is justified.”



Observers recall that Uzbekistan suspended its membership of another former Soviet grouping, the Collective Security Treaty Organisation, in 1999, arguing that it had its own political and security interests to look after. The Uzbeks rejoined that grouping seven years later.



In 2005, Uzbekistan withdrew from a different grouping known as GUUAM, leaving the remaining members – Georgia, Ukraine, Azerbaijan and Moldova – to spell out GUAM.



NBCentralAsia is an IWPR-funded project to create a multilingual news analysis and comment service for Central Asia, drawing on the expertise of a broad range of political observers across the region. The project ran from August 2006 to September 2007, covering all five regional states. With new funding, the service resumed in 2008, covering Uzbekistan and Turkmenistan.)

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