An analysis of the dynamics of Uzbekistan’s external trade shows that it retains a number of problems that in the long run undermine goals of sustainable economic development. This is expressed not only in the negative rates of its growth in recent years, but also in the negative trade balance net of energy, devaluation waves that swept the main trade partners, low world prices for the main export commodities, weak degree of product and geographical diversification of exports, as well as the existence of institutional problems. For these reasons, it can be argued that Uzbekistan’s export sector remains vulnerable to external shocks.

In these uneasy conditions it seems relevant and timely to pinpoint key directions for reforming the external trade sector.The targeted liberalization of external trade which is already underway, the elimination of the numerous problems associated with export and import procedures, taking into account the world’s best practices, the combination of these efforts with an effective policy of attracting foreign direct investment, mainly to the manufacturing industries, are the key policy priorities in this regard. This research is devoted to a detailed statistical analysis of the abovementioned problems of Uzbekistan’s external trade, the remaining policy space in this direction, the possibilities to increase the share of non-primary goods in its structure, and the development of effective steps and measures for further diversification of the geography and product structure of the country’s exports, taking into account foreign experience and results of empirical research. With effective implementation of these and other steps, the country can create new industries with high competitiveness in the world market, thereby ensuring the diversification of production and exports of industrial goods with a high degree of processing.