A delegation from Uzbekistan’s Ministry of Investments, Industry and Trade visited the United States to promote Uzbek products, expand export opportunities and develop bilateral trade and economic relations, the ministry press service said.
At a meeting with the US Department of Agriculture and the US Cotton Association, the sides discussed the supply of American cotton under the GSM-102 program, a US export credit guarantee scheme.
Discussions included both increasing the credit limit and launching the “Made from U.S. Cotton” initiative, under which products made from the American cotton would be exported from Uzbekistan to global markets.
Why Uzbekistan needs American cotton
Uzbekistan is a country that has been known for decades as one of the world’s largest cotton exporters. Efforts to start cotton imports signify fundamental transformation of the entire industry.
Each year, Uzbekistan produces about 3.5 million tons of raw cotton (ranking sixth in the world) and 1−1.2 million tons of cotton fiber. Previously, about 40% of this cotton fiber was exported. In 2022, president Shavkat Mirziyoyev announced that Uzbekistan would stop exporting cotton and would fully process it domestically — including through the creation of cotton-textile clusters.
After abolishing the state monopoly and undertaking a large-scale campaign against forced labor, Uzbekistan rapidly moved toward a high-margin textile export model. In certain segments — such as premium clothing or medical textiles — American cotton holds internationally recognized certifications of trust.
Re-export processing
In February 2024, the management of Uztekstilprom (Uzbekistan Textile and Garment Industry Association) and representatives of the US-based Cotton Council International discussed cooperation in Tashkent.
According to Uztekstilprom, the fast-growing textile industry in the country created a growing need to import cotton. At that time, Cotton Council International announced the launch of a representative office in Uzbekistan and plans to sign several agreements “aimed at developing the potential of local textile enterprises”.
The GSM-102 program allows importing countries to purchase US agricultural products on credit — with guarantees from the US Department of Agriculture. This reduces risks for commercial banks and makes such purchases more accessible. For Uzbekistan, where businesses still face challenges in obtaining cheap long-term foreign currency loans, this could become a key mechanism for importing strategic raw materials.
In May, one of the country’s major banks Uzpromstroybank said it became the first bank in Central Asia to participate in the GSM-102 program and established cooperation in providing guarantees for trade financing credit lines.
Experts say the talks are not simply expanding access to GSM-102, but also using cotton as a form of export branding. The “Made from the US cotton” initiative could make Uzbekistan part of a global production cycle: processing American cotton into textiles and exporting it under a new certified label. This is a form of “processed re-export” with significantly higher added value.