Chapter 4: Accession of Uzbekistan to the WTO
4.5. Agriculture
ucts, is charged at ａ zero rate except for valuable metals, and also countries (Kazakhstan, Kyrgyzstan, Azerbaij Ｍ ｏｌｄｏｖａ）
who have bilateral agreements with Uzbekistan are not charged for export183. Excise tax is not applied to export products. For ex‑
ample, on imported goods the excise tax charge on mineral water is 100%, oil goods 20%, furniture 50%, air conditioner 20%, pet food 70%. Ｔｈｅ VAT rate to all imports is 20%184｡
Customs duty range is between 0% and 30%. For example, clothing is taxed 10%to 30%, furniture 10%to 30%, food 5% to 30% ， etc. Application of customs duties may vary by country of origin
of imported goods180.
particularly to industries engaged in the processing of agricultural products, as well as the mechanical engineering industry and agri‑
cultural chemistry, which, in the domestic market, is largely de‑
pendent on the agricultural sector190｡
Uzbekistan is ａ major exporter of cotton fiber in the world and has ａ natural competitive advantage in the production of fruits and vegetables. Currently, more than 97% of exports of refining products of fruit and vegetable raw materials accounts for the CIS countries, including more than 90% of which go to the Russian market191｡
Uzbekistan uses various types of state support for agriculture, including what is classified under WTO rules as ａ measure of
"green box," that is permitted subsidies, and measures of "amber box," which are reduced subsidies. Measures of "blue box"cover di‑
rect payments and are provided for programs limiting production in the EU （deco ｕpled payments) and the U.S. (deficiency pay‑
ｍｅｎts）.ｌｎ contrast to these countries, in Uzbekistan measures of
"blue box" are not used｡
The agricultural sector of Uzbekistan is regulated by the fol‑
lowing normative legal acts:
Land Code of the Republic of Uzbekistan192 main objec‑
tives of land legislation are the regulation of land relations in order to ensure the benefit of present and future generations of science‑based, rational use ,and protection of lands, reproduction and improvement of soil fertility, preserving and improving the natural environment, creating conditions for equal development of
Impact on Agriculture," 98･
190 http://trade.ecoaccord.org/agc/uzbekistan.htm
191 http://trade.ecoaccord.org/agc/uzbekistan.htm, " CenbCKoe X03HHCTB0 Ｈ YCTOH^HBOe Pa3BMTne. CTpaHOBbie O63opbi Pecny6jiHKa y36eKHCTaH
(Agriculture and Sustainable Development. Country Profiles. Republic of Uzbekistan)
192 Land Code of the沢印 功 劭 ｏﾊﾞJzbekistan, 1998.
４ ７
all forms of economic management, the protection of legal rights and individuals on land, as well as the strengthening of the rule of law in this area｡
Law "On Deh たan Fa Γ尻¨193 − This Law defines the legal basis for the creation, operation, and liquidation of dehkan farms, regulates their rights and duties, and regulates relations with other legal en‑
tities and individuals. Ａ Dehkan farm is ａ small‑scale family farm, carrying out the production and sale of agricultural products on the basis of personal labor of family members in the household
plots provided b ｙ the family, leading to ａ lifelong inherited posses‑
sion｡
Law "On the Protection of Ag パｃ㎡ 加Γal Plants against P･?sts, 工)隔?ases and Weeds"m − The purpose of this Act is to regulate the relations connected with ensuring protection of crops from pests, diseases, and weeds, and preventing the harmful effects of plant protection products on human health and the environment｡
Law "On Qua Γantine ｏ/゛ Plants195 − The main objectives of plant quarantine are the implementation of ａ system of state measures on external and internal plant quarantine aimed ａt: pro‑
tection of the territory of the republic from penetration from for‑
eign countries' quarantine and other dangerous pests, plant diseases, and weeds, which can cause significant economic damage to the national ｅｃｏｎｏｍ ｙ; timely detection, organization of localiza‑
tion and liquidation of quarantine and other dangerous pests, plant diseases, and weeds, as well as preventing their entry into areas of the country where they do not exist; carrying out state control over the observance of the rules and implementation of ac‑
tivities on plant quarantine in the production, procurement, trans‑
193 Law of the 沢印 功lie of Uzbekistan on ￡)ehkan Farm, 1998･
194 Law of the Republic of びこ篩 衍ｓ￡α77 071 ？ｒｏ￡ection of Ag パｃ㎡￡ural Plants agains ￡？ｅｓ￡ｓ，￡disease and Ｗａ?ｄｓ･，2000･
195 Law of the 沢印 功lie of 晩 治･kis￡an on Qua Γantine of Plants, 1995.
portation, storage, processing, sale, and use of agricultural and other products of plant origin｡
Law of the Republic of Uzbekistan "On Seed Culturing 196 − The main objectives of seed production are to create its own database of seed crops; preservation of biological and economic valuable signs of breeds and hybrids of seeds in the process of strain renovation and variety change; provision of agricultural high‑yielding and high‑quality seed; state control over the quality of the seed; and in‑
troduction of the world achievements and experience in seed pro‑
duction｡
Law of the Republic of Uzbekistan ¨０ 箟 Tribal Animal 召reeding"197 − The main objectives of livestock breeding are crea‑
tion, preservation, reproduction, and rational use of breeding re‑
sources in order to improve breeding and productive qualities of the animals; ensure the accuracy of accounting origin, productiv‑
ity, assessment of the type and other qualities of breeding re‑
sources used in the selection process; conducting tests of manufacturers for quality of posterity; obtaining animals with new useful genetic traits; effective use in the selection of the most valuable global gene ｐｏｏ１; preservation of the local gene pool and domestic breeds that are disappearing; and increasing economic ｅ仁 ficiency and competitiveness of the entire livestock industry｡
Law of the Republic of Uzbekistan "On ＦαΓ尻 耳 〇αｓｅんoids:m Farming is an independent economic entity with rights of legal en‑
tities, based on the joint activities of farm members, leading com‑
mercial agriculture with the use of land granted in the long‑term lease. The members of the farm are the head of household, his/her wife/husband, children, adopted children, parents, other relatives, and other persons who have reached working age, jointly leading
196 Law of the 沢印 功 汾 ｏバ ソzbekistan on Seed Cul￡『ing, 1996･
197 Law of the 沢印 功 汾 ｏバ ソzbekistan on Tribal Animal Breeding, 1995 198 Law of the 沢印 功 汾 ｏバ ソzbekistan on Farm Households, 1998.
四
the farm for whom the work on this farm is the main place of work. Also members of ａ farm can't be persons working on the farm under the labor contract.
Among other laws regulating the country's agriculture sector are the Law of the Republic of Uzbekistan "On Forest:m the Law of the Republic of Uzbekistan "On Agricultu ΓαＺ Cooperatiu･?
CShirkat) "m the Law of the Republic of Uzbekistan "About
Ｓ鬲?ction Achu? ａ?merits,1,201 the Resolution the Cabinet ｏ/゛
Ministers ｏ刀 乃npro じing the Organization Work of the Ministry of Agricultur･?and Water Resou Γｃ６ of the R･?public of びｚ＆?kista がo2･
The Resolution defines the tasks, functions, powers, and organiza‑
tional bases of activity of the Ministry of Agriculture and Water Resources of the Republic of Uzbekistan. The objectives of the Ministry ａｒｅ:
口 creation of ａ single agro‑technical policy aimed at the modernization and sustainable development of agricul‑
ture;
口 improvement and introduction of modern technologies in the field of agricultural production;
口 coordination of industries' activities, units and structures serving agricultural producers on the basis of market principles and mechanisms;
口 coordination of works on deepening economic reforms in the agrarian sector, the broad development of the lease, the family contract, farms;
口 development of recommendations to improve farming sys‑
tems and the variety of cropping･
199 200
ｌｎ乙００
ｎ乙ｎ乙
Law cび ￡加 沢印 功lie of Uzbekistan on Forest, 1999.
Law cぴ ￡加 召印 功lie of Uz 加人listan on Ag パaZ ￡Γ αＺ Ｃｏ叩 ｅΓative (Shirka ￡)，
1998.
Law of the Republic of Uzbekistan About Selecび０７１ Achievements, 1996.
Resolu びon of the Cabinet of Ministers on ,加iproving the Organiza ぴ０７７ Work o/
the Minis ￡ry Ag パculture and Wa ￡er Resources of the 沢印 功 汾 ０/ 晩 心ekistan, 2003.
In accordance to the assigned tasks, the Ministry per‑
forms the following functions:
口 introduce to the Cabinet of Ministers proposals on the main directions of the state policy in the field of Agriculture, Water and Forestry, and strategies and mechanisms for their implementation;
口 develop sectoral and regional programs of development of agriculture, water, and forestry;
口 participate in attracting foreign and domestic investment into the agriculture, water, and forestry, provide efficient and targeted use of budgetary funds;
口 organize training and professional development of man‑
agers and specialists in the field of plant protection, etc.
4.6. The impact of inadequate Intellectual Property Rights Protection in Uzbekistan
In recent decades the role of intellectual property in the world economy has grown significantly. But the high level of
infringement of intellectual property rights (IPR) protection in Uzbekistan causes unemployment, uncollected taxes for budget
revenue, lack of investment from developed countries, the suspen‑
sion of the creation of IPR and their integration in economic turn‑
over, and the undermining of state authority. The importance of the protection of IPR is due to the negative impact of counterfeit goods on the country at both international and national levels. The turnover of all counterfeit goods in the Uzbek market is around 4‑6 billion soms per year (U.S. $2‑3 million 尸. For example, the state budget loses ａ significant part of the revenues from the hiding of received profits by "pirates," and as ａ result is forming the shadow
203 Ahmedova L., "y6bITKM y36eKHCTaHa OT KoHTpa φaKUHH (The Losses From the Counterfeiting Products for Uzbekistan) in Russian language," 12.
j7
sector of economy. Furthermore, this reduces the international prestige of the country and the inflow of investments and pro‑
motes the appearance of organized criminal groups204｡
Lack of IPR protections causes an additional disadvantage for developing countries that seek to join the World Trade Organization (WTO). This is because the advent of the WTO Agreement on 7 Γade R･?lated Aspects ｏ/匸yy泊?llectual Property Rights200 means that aspiring members from the developing world must reform their IPR regimes. As ａ result, problems have arisen in the implementation and enforcement of the TRI1:*S Agreement206･
7呪 耳)S is the "first international agreement to link IPR with trade and to comprehensively incorporate the protection of IPR into the WTO system."20' With the exception of "moral rights," 7呪IPS cov‑
ers all aspects involved in the protection of IPR, from patents, trademarks ,and copyright laws to the proper adjudication of dis‑
putes. TRIPS provides for the systematic resolution of disputes ac‑
cording to its Dispute Settlement Understanding ①SU) pｒｏｖisｉｏｎｓ208. Consequently, the TRIPS Agreement provides WTO members with security and predictability, and establishes IPR pro‑
tection as an integral part of the WTO multilateral trade system209･
TRIPS requires WTO member countries to enact substantive legis‑
lation to protect against counterfeiting and ensure that critical en‑
204 Ibid.
205 Agreement on Trade‑Related Aspects of Intellectual Property Rights, Apr. 15 ， 1994, Marrakesh Agreement Establishing the World Trade Organization, Annex 1C[hereinafter TRIPS Agreement], World Trade Organization and Uruguay Round, The Legal Te?xts, 320.
206 Carlos Ｍ Correa, 'Implementing TRIPs in Developing Countries', Third World Economics, July 16 ， 1998, available at http://ｗｗｗ･grain.ｏｒｇ/article/entries/
1942‑implementing‑trips‑in‑developing‑countries･
207 A. Evans, "Taming the Counterfeit Dragon: The WTO, TRIPS, and Chinese Amendments to Intellectual Property Laws," Geor,がa Journal of International and Comparative Law 31 (2002):600.
208 K. K Athanasakou, "China IPR Enforcement: Hard as Steel or Soft as Ｔｏｆｕ?
Bringing the Question to the WTO under TRIPS," Georgetown Journal o/
International Law 39 (2007):217‑693.
209 Ibid, p.226.
forcement procedures will be available in each member country to safeguard IPR210｡
The accession process for the Republic of Uzbekistan (Uzbekistan) to join the World Trade Organization has already been in train for around 20 years. More and more countries join the WTO, and none leave. The harmonization of nationa 囗aws to conformity with the WTO norms is ａ challenge for all aspiring members, and this is no different for Uzbekistan. Certainly, the ac‑
cession of Uzbekistan to the WTO, as some Uzbek scholars noted, has its advantages and disadvantages. From the advantage side, the level of foreign investments to the country will be increased211, consumers will no longer be faced with low quality products, and local manufacturers will have incentives to produce better quality products for entering to international markets. From the disad‑
vantages side, the small Uzbek manufacturers of low quality prod‑
ucts will be faced with strong international competitors in the market, in which the high quality products replace the ones from smaller manufacturers, and as ａ result unemployment levels ｗ111 1ncｒｅａse212｡
Uzbekistan's WTO entry is likely to be realized in the coming years, but the country is plagued by difficulties caused by inade‑
quate IPR protections. In particular, entry to the Uzbek market of low‑quality counterfeit goods at a price lower than the cost of similar goods of domestic producers is ａ chronic issue, ruining do‑
mestic industry. Moreover, Uzbekistan's domestic film and music
210 Evans, "Taming the Counterfeit Dragon," 600.
211 S.Ch. Jalalov, A. Hamdamov 厂'AHajiHTHwecKan ^acTb : BcTynn eHue y36eKHCTaHa Ｂ ＢＴＣ）Ｈ Ee BjIHHHMe Ha CenbCKoe Xo 3 H M C T B Q Analytical Part: Accession of Uzbekistna to WTO and Its Impacts on Agriculture,"
Economical Review cｿ びこbekistan, 2009.
２ １２ Hasan Islamhodjaev H.S., "Op ΓaHM3aiIMOHHO ripaBOBbie AcneKTbi BCTynneHMH Pecny6jiMKM y36eKMCTaH BO Be eMup Hyio ＴｏｐΓｏ Ｂ yio ＯｐΓa h h 3 a u Mio (Organizational‑Legal aspects of accession of Uzbekistan to WTO)," 48.
j3
industry loses revenues from piracy, and this stifles incentives for creativity213. Despite the signing of ａ bilateral Agreement on 71Γαde Relations 加tween the? び㎡ ￡,?d Stati?ｓ of Ami?rica and the Republic ｏバ ソzbekistan in 1993, the United States (U.S.) continues to oppose Uzbekistan's accession to the WTO on the basis of its poor record in IPR protection.
Figure 5: Participation of Uzbekistan in International Intellectual Property Agreements:
China Uzbekistan
WIPO 1980 1991
Paris Convention for the Protection of Industrial Property1985 1991 Treaty on Intellectual Property in Respect of Integrated
Circuits 1989
Madrid Agreement Concerning the International Regist‑
ration of Marks 1989
Berne Convention for the Protection of Literary and
Artistic Works 1992 2005
Convention for the Protection of Producers of Phono‑
grams Against Unauthorized Duplication of Their Phono‑
grams.
1993 Nice Agreement Concerning the International Classifi‑
cation of Goods and Services for the Purposes of the Registration of Marks
1994 2002
Patent Cooperation Treaty 1994 1991
Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure
1995 2002
Protocols of the Madrid Agreement Concerning the Inter‑
national Registration of Marks 1995 2006
Locarno Agreement on Establishing an International
Classification for Industrial Designs 1996 2006 Strasbourg Agreement Concerning the International
Patent Classification 1997 2002
International Convention for the Protection of New Varie‑
ties of Plants （UPOV ） 1999 2004
Source: Author214
213 214
Ahmedova, 'The Loses From the Counterfeiting Products for Uzbekistan', 12･
Author's compilation from WIPO database in 2016.
4.7. Some problems in Uzbek IP Legislation
Duplication of norms are inherent in the Civil Co 心 呪For ex‑
ample, the provisions of the Civil Code of the Republic of Uzbekistan duplicate almost half of the Law "On Ｃ叩yright and Related Rights 216 with absolute identity. Besides the norm the law in some formulation is also repeated in the Law "On legal pro‑
tection of compute ΓμΓograms and databases."211 1n many cases, the latter refers to the Law "On Copyright and Related Rights."218
4.8. The absence of ａ clear system in the legislation
Since the Ｇ 詞Ｚ Code contains ａ lot of norms, which is repeated in special laws, there has been some confusion in the law. The leg‑
islator from the one side tried as far as possible in detail to settle the intellectual property rights in the Ｇ 詞Z Cod･?, and on the other hand it adopted special laws for each object of intellectual property for more clear settlement. Many special laws were enacted after the adoption of the Ｇ 詞Z Cod･?. Therefore, special laws adopted many functions of the corresponding provisions of the Ｇ 詞Z Cod･?･
Consequently, such norms could be excluded from the Ｃｏｄｅ; how‑
ever, it still is not done and the reason is not known. It can be as‑
sumed that the legislature is afraid to open large scale reform of the civil law. An example of the Law "On Legal Protection of Ｃｏ瓜ﾌﾌ瓧･?ｒ Programs and Databases 219 also shows that it does not perform an important regulatory function in the system of legisla‑
tion. With the same success, it was possible to formulate norms of
215 Civil Code of￡加 沢印 功lie of Uzbekis￡an, 1996.
216 Law of the沢印 功lie of Uzbekistan ｙ ０. 272‑1 of Aug us￡郛 ，四 何 回Copyright and Rela￡ed Rights･
217 Law of ￡加 沢印 功lie of Uzbekis ￡an No. 1060‑X 耳of May 6, 1994 on the Legal Protection of Computer Programs and ￡databases･
218 "Law of the Republic of Uzbekistan Ｎ０. 42 0f July 20， 2006 0n Copyright and Related Rights."
219 Law of ￡加 沢印 功lie of Uzbekistan No. 1060‑XII of May び, 1994 on the Legal Protection of Computer Programs and ￡databases.
j ５
this law as ａ subordinate act because the law contains mainly pro‑
cedural norms on registration of software products and many ｒｅ仁 erences to the Law ¨Ｏｎ Copyright α肌/ 召･?Zd ㎡ Rights rm Historically, the law "On Legal Protection ｏ/゛ Comput･?ｒ Programs and Databases 221 was initiated by the State Patent Office of the Republic of Uzbekistan and this law was adopted before the
Copyright Law. Therefore, both laws were developed separately from each other｡
Some norms of Uzbek Laws, are not complying with the WTO
7￣でRIPS Agreement . Paragraph l of Article 6 0f Uzbek law on ¨ 一岳 詢?ntions, び￡消 印y Ｗ(姐els and Indus ひial Designs 222 does not com‑
ply to paragraph l of Art.27 0f the 7 貎 がAgreement 223, under which:"Subject to the provisions of paragraphs 2 and 3 ， patents shall be available for any inventions, wheth 卯 夕Γoducts ｏｒ μΓoc‑
･?sses, in all fields of technology, provided that they are new, in‑
volve an inventive step and are capable of industrial application･
Subject to paragraph 4 0f Article 65 ， paragraph 8 0f Article 70 and paragraph 3 0f this Article, patents shall be available and patent rights enjoyable without discrimination as to the place of inven‑
tion, the field of technology and whether products are imported or locally produced."224
The Law of I乃 加kistan on "Inventions, び￡汲 印 Ｍ(辺･?Is and Industrial Designs"
Article び. Conditions of patentab 消 印states that "The subject, which claimed as invention is granted legal protection if it is new, involves an inventive step and are capable of industrial application."220
220 "Law of the Republic of Uzbekistan Ｎ０. 42 0f July 20， 2006 0n Copyright and Related Rights."
221 Law of the 沢印 功lie of Uzbekis ￡an No. 1060‑X ∬of May び, 1994 on ￡he Legal Protection of Computer Programs and Databases.
222 Ibid.
223 World Trade Organization and Uruguay Round, The Legal Tex ￡ｓ， 332.
224 Ibid.