Effectiveness of Trade for Landlocked Countries

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include oil, coal, timber, iron ore, lignite, copper, antimony, zinc, tungsten, magnesite, salt, graphite, and hydropower.

Transport

Goods transport in Austria are through its well developed road network, rail, waterway through the Rhein-Mein-Danube canal that enable Austria to transport its goods from the North Sea to the Black Sea. Austria only transport 0.3% of its goods via air freight (AUSTRIA, 2015).

The top exports of Austria are Packaged Medicaments, Vehicle Parts, Cars, Petroleum Gas and Human or Animal Blood, Crude Petroleum, Refined Petroleum (Simoes and Hidalgo, 2011)

Trade Agreements

Switzerland – European Free Trade Association (EFTA) and Bilaterals II Czech Republic – EU member

Germany - EU member Hungary - EU member Italy - EU member Slovakia - EU member Slovenia - EU member

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Austria’s status is similar to that of Hungary in that being an EU member, it enjoys free movement of goods, people, services and capital within its members. Its non-EU member neighbor, Switzerland is a member of the EFTA which has a close trade relationship with the EU as signified by the European Economic Agreement (EEA) as well as the EU-Swiss Bilateral Agreements.

Economic Outlook

Austria is projected to record a mild expansion this year before speeding up next year. Growth in 2016 is expected to benefit from the tax reform to take effect on 1 January, which will lead to an income tax relief and likely spur private consumption. Adding to this, the low interest rate environment will contribute to a turnaround in investment and the ongoing Euro area recovery is expected to lift exports. Focus Economics Consensus Forecast panelists see the economy expanding 0.8% in 2015. For 2016, the panel sees economic growth picking up to 1.4%, which is unchanged from last month’s forecast. (Focus Economics, 2015)

- Uzbekistan

Geography

Uzbekistan is a landlocked Central Asian country which borders Turkmenistan, Kazakhstan, Afghanistan, Tajikstan and Azerbaijan. Its size is slightly larger than California with terrain of mostly flat-to-rolling desert; broad, flat river valleys .

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Government

Uzbekistan is a Republic. But according to Central Intelligence Agency, (2015) Uzbekistan has an authoritarian presidential rule with little power outside the executive branch. Currently in the executive branch, the president is Islom Karimove (since March 24, 1990) and the prime minister is Shavkat Mirziyoyev (since December 11, 2003). The president is directly elected by absolute majority of the popular vote in 2 rounds and if needed for a five year term. The 5-year term was extended by a constitutional amendment to 7 years and reverted to 5 years in 2011. The legislative branch, bicameral Supreme Assembly (100 seats; 84 indirectly elected by regional governing councils and 16 appointed by the president), and the Legislative Chamber (150 seats; 135 members directly elected by constituencies and 15 indirectly elected by the Ecological Movement of Uzbekistan). All parties in the Supreme Assembly support President Islom Karimov. The judicial branch consist of the Supreme Court with 34 judges organized in civil, criminal, and military sections. A constitutional Court with 7 judges and higher Economic Court with 19 judges. Terms of the 3 highest courts are nominated by the president and confirmed by the Supreme Assembly and appointed for 5-year terms. (Central Intelligence Agency, 2015)

Trade

Uzbekistan according to Simoes and Hidalgo, (2011)is the “108th largest export economy in the world and the 90th most complex economy according to the Economic

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Complexity Index (ECI). In 2013, Uzbekistan exported $5.86B and imported $12B, resulting in a negative trade balance of $6.15B. In 2013 the GDP of Uzbekistan was $56.8B and its GDP per capita was $1.88k.” Uzbekistan top export trading partners are China, Russia, Kazakhstan, Turkey and France. Most of its import comes from Russia, China, South Korea, Kazakhstan and Turkey. (Simoes and Hidalgo, 2011)

The economy of Uzbekistan has a Soviet-style command economy with subsidies and tight controls on production and prices, which discourages foreign investment. Uzbekistan’s main export are Petroleum Gas, Cars, Raw Cotton , Refined Copper and Radioactive Chemicals. Its top imports are Vehicle Parts, Package Medicaments, Refined Petroleum, Sawn Wood and Coated Flat-Rolled Iron (Simoes and Hidalgo, 2011). Uzbekistan labor force according to Larrison et al., (2014) “worker skills gaps are hindering employment outcomes in Uzbekistan.” These shortages of skilled workers are causing high wage premiums. Compounding to this shortage of skills problem is that more than half of the Uzbekistan’s workers are in the informal sector where they do not learn new things because their work are predominantly involves repetitive tasks. (Larrison et al., 2014)

Transport

The freight traffic volume in Uzbekistan has doubled since 2005, which is mainly due to the increase of private freight carriers that make up 85% of its transport system. The importance of the transport sector is reflected by its accounting for 9% of Uzbekistan’s GDP as

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well as 4% of total employment. As a result, the transport sector is a leading recipients of investments when $7 billion were allocated for that sector in 2011-2015

(Center for Economic Research, CER, 2015). Railway transport account for the majority or 35% of the export-import and transit cargoes followed by motor roads and air transport.

Economy and Trade / Transportation Network. (n.d.)

Trade Agreements

Turkmenistan – Bilateral FTA Kazakhstan – Bilateral FTA Afghanistan -

Tajikstan