One of the most striking consequences of the removal of MFA restrictions on textile and apparel trade in 2005 is that retailers and designers from major importing countries (USA, Japan, EU) or elsewhere are now freer to source textile and clothing orders from the cheapest suppliers anywhere in the world ？ be it small economies like Bangladesh, Sri Lanka or large producing giants like China, India, In this highly competitive market Uzbekistan should promote export-oriented national textile industry to secure its place as one of the major producers of textiles. In fact, textile industry can be a locomotive for the development of export-oriented economy. First of all, Uzbekistan has a material base that cuts transport costs, delays, and creates inter-related industries. Secondly, textile industry is not capital but labor intensive that can create hundred thousands of needed jobs. Thirdly, export of ready-made garments can increase value added up to 20 times.
However investigation into the UTI shows that outdated technology, low utilization ratio, high tax burden and unstable financial situation of enterprises, the absence of financial incentives between farmers and cotton fiber processing plants and lack of FDI hinder textile industry development. After analyzing the UTE and based on international experience and practices observed in textile exporting countries in the region and beyond, the following recommendations are thought to be useful to improve and develop the national textile industry: First, create integrated value chains starting from cotton seeds to ready-made garments. Second, reduce the impact of domestic taxes and operational costs. Third, improve technology profile and productivity. Fourth, improve labor productivity. And the fifth, strengthen industry？s image and market development strategy
