Toll Fee Waiver: Making Small Amends For Long-Term Gains

Uzbekistan has abolished a toll fee on vehicles imported into the country from Russia and Ukraine, in a move BMI believes is broadly aimed at improving trade ties with its neighbours. Relations between Uzbekistan and its trade partners went sour in 2011 following Uzbekistan's imposition of 5% and 69% import duties on vehicles produced in Russia and Ukraine respectively. We are sceptical about any significant short-term benefits from the reversal in policy, although in the longer term we expect such moves to benefit Uzbekistan's domestic autos manufacturers by possibly giving local carmakers greater access to the high-potential Ukrainian and Russian

To read the full article, please choose one of the following options: