Regional trade strengthens resilience in Central Asia

Tashkent, Uzbekistan (UzDaily.com) — Central Asian countries are increasingly focusing on the development of regional trade as a key factor of economic resilience and long-term growth amid the transformation of global supply chains and rising economic uncertainty.

According to analytical materials on the region, trade is no longer viewed solely as a source of economic growth, but increasingly as a tool for managing risks. This shift reflects growing unpredictability in the global trading system, while domestic markets in most countries of the region remain relatively small and unable to fully absorb external shocks.

Coordination of these efforts is provided through the Central Asia Regional Economic Cooperation (CAREC) Program, which brings together 11 countries from Georgia to China. The program aims to improve trade, transport, and energy connectivity, with the long-term objective of turning the region into a more integrated economic space.

Despite the significant combined trade turnover of participating countries, which reached US$6.4 trillion in 2024, intra-regional trade remains low at around 4%. Economies in the region face common barriers, including complex customs procedures, differences in technical standards, and other non-tariff restrictions that increase costs and slow the movement of goods.

An additional challenge is the rapid growth of digital trade, which is outpacing existing regulatory frameworks and infrastructure. While cross-border e-commerce and paperless procedures are becoming important elements of competitiveness, many systems still rely on traditional documentation processes.

Experts emphasize that regional solutions can help overcome the limitations of individual national markets.

Economic integration creates scale for producers, expands access to export markets, and supports investment inflows. At the same time, coordination of transport and border procedures reduces logistics costs and improves supply reliability.

The region’s strategic position at the crossroads of trade routes between Europe, East and South Asia, and the Middle East is becoming increasingly important amid global supply chain diversification. Over the past two decades, CAREC countries have invested more than US$53.7 billion in infrastructure development, including roads, rail networks, and trade corridors.

As a result, the region now has a basic infrastructure and institutional foundation for further integration. Customs authorities are introducing digital solutions, while businesses are adapting to international standards.

The next stage of development is expected to focus on deeper integration, including regulatory harmonization, improved predictability of trade conditions, and the introduction of digital transit systems. These measures are expected to accelerate the movement of goods, reduce costs, and create new opportunities for small and medium-sized enterprises.

An important step in this direction is the CAREC Agreement on Partnership for Trade and Investment Facilitation, aimed at simplifying trade procedures, expanding digital solutions, and integrating regional supply chains.

Experts note that with further reduction of barriers and stronger cooperation, regional trade could become a key driver of economic growth, employment, and resilience in Central Asia, enabling countries to better adapt to global changes.