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International trade

CAREC Region Plays Key Role in Shaping WTO Reform, Promoting Regional Integration

Strategic Insights

— 1 min read

The CAREC (Central Asia Regional Economic Cooperation) region's potential to play a vital role in the re-globalization agenda was highlighted during a recent event discussing the region's contribution to shaping the multilateral trading system and ongoing WTO reform efforts. Director-General Ngozi Okonjo-Iweala emphasized the region's "strategically important location between major economic centres in Europe and Asia," citing the vast mineral reserves and green energy potential as key assets in regional integration.

Lowering trade costs, simplifying border procedures, and cutting red tape in the region through implementation of the WTO Trade Facilitation Agreement would attract more investment, encourage more trade, and support growth and employment. The DG also stressed the importance of digital connectivity for Central Asian economies to overcome geographic constraints, especially considering the region's landlocked status.

AI and the digital transformation are expected to increase the region's potential to become a trade hub for land-linked economies. The WTO's recent World Trade Report identifies steps that CAREC countries and their partners can take at home to maximize AI as a driver of trade and inclusive growth.

Bruce Gosper, Vice President for Administration and Corporate Management at the Asian Development Bank, echoed the DG's remarks, explaining that multilateral trading systems and regional integration are mutually reinforcing tools for prosperity. Regional initiatives like the CAREC Program can help maintain momentum for the rules-based open trade system.

Key Takeaways:

  • CAREC region is strategically positioned between major economic centers in Europe and Asia.
  • The region has considerable potential for regional economic integration, mineral reserves, and green energy potential.
  • Lowering trade costs, simplifying border procedures, and cutting red tape in the region would attract more investment and support growth.
  • Digital connectivity is crucial for Central Asian economies to overcome geographic constraints.
  • AI and the digital transformation will increase the region's potential to become a trade hub for land-linked economies.

Statistics:

  • The CAREC Program is an open and inclusive partnership of 11 members from Central Asia, South Caucasus, East Asia, and South Asia.
  • The ADB acts as the Secretariat of the CAREC Programme.
  • 3 WTO accession priorities are Azerbaijan, Turkmenistan, and Uzbekistan under the CAREC Integrated Trade Agenda 2030.

Sources:

  • World Trade Organization
  • Asian Development Bank
  • CAREC Programme

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