CAREC countries need to reduce remaining barriers to cross-border trade

BAKU, Azerbaijan, Feb.9. The Central Asia
Regional Economic Cooperation (CAREC) Program countries need to
reduce the remaining barriers to cross-border trade, reads the
article published on the Asian Development Bank’s (ADB) website,
Trend reports.

CAREC Program comprises 11 member countries: Afghanistan,
Azerbaijan, People’s Republic of China, Georgia, Kazakhstan, Kyrgyz
Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and
Uzbekistan.

“There is still substantial untapped potential for expanding
mutually beneficial trade and investment across borders in the
CAREC region. Three earlier CAREC studies that informed the Trade
and Investment Facilitation Partnership Agreement (CARTIF) concept
identify a range of persistent barriers to cross-border trade and
investment flows in the region, including (i) tariffs and nontariff
measures on trade in goods, (ii) differences in service market
regulations, (iii) limited recognition of standards and conformity
assessments, (iv) restrictions on the movement of businesspeople
and service providers, and (v) various domestic obstacles that
increase costs and uncertainty for traders and investors. Hence,
tariffs are not addressed by CARTIF’s Initial Protocols because
they warrant a gradual/differentiated approach,” reads the
article.

Complementary evidence from the CAREC study on transit trade
facilitation in Azerbaijan, Kazakhstan, and Uzbekistan, and from
the ADB study on trade and transport facilitation along CAREC
corridors, highlights persistent legal, regulatory, institutional,
and infrastructure-related barriers that impede transit trade in
the three countries and constrain international shipments along the
corridors.

“Together, these findings point to the need for increased
efforts by CAREC countries to reduce remaining barriers to
cross-border trade and investment. The empirical assessment of
different configurations of a CAREC free trade agreement further
indicates that enhanced facilitation of cross-border trade and
investment can generate considerable economic gains for CAREC
countries, particularly for landlocked economies,” the article
says.

On 20 November 2025, the 24th Ministerial Conference of the
CAREC Program adopted the Bishkek Declaration officially launching
negotiations on the CAREC Trade and Investment Facilitation
Partnership Agreement (CARTIF). This marked an important milestone
in CAREC countries’ efforts to advance regional economic
cooperation and integration in trade and investment.

CARTIF builds on more than 2 decades of collaboration under the
CAREC Program, including progress achieved through CAREC Strategy
2030 and the CAREC Integrated Trade Agenda 2030, as well as the
implementation of international agreements and conventions such as
the World Trade Organization (WTO) Trade Facilitation Agreement. It
aims to establish an inclusive, transparent, and flexible regional
economic partnership to facilitate cross-border trade and
investment.