Discussing Trade Diversification and the Importance of the Middle Corridor in the CAREC Region
On August 9, PMCG Research delivered a presentation at the CAREC Think Tank Network (CTTN) Dialogue Series event entitled “Trade Diversification in the CAREC Region: Opportunities and Challenges.” In particular, it shared perspectives on trade diversification in the Central Asia Regional Economic Cooperation (CAREC) region in general, and regarding Georgia specifically.
Nika Kapanadze, Head of Private Sector Analysis at PMCG Research, emphasized the strategic importance of the Middle Corridor, also known as the Trans-Caspian International Transport Route, particularly in the aftermath of Russia’s invasion of Ukraine in 2022. Furthermore, among other detailed insights, he cited the example of PMCG Research’s analysis of Kazakh-Georgian bilateral trade patterns. On the basis of that work, it identified products with potential to be traded in greater volumes between the two countries.
In addition to his presentation, Kapanadze engaged in discussions with other keynote speakers and think-tank representatives from Azerbaijan, Kazakhstan, Kyrgyzstan, Pakistan, and Uzbekistan. These exchanges added further value to the dialogue as participants shared ways of overcoming challenges and seizing opportunities as trade becomes more diverse in the CAREC region. Overall, an urgent need to improve infrastructure was highlighted, in order to reduce transportation costs, lower trade barriers, and leverage digitalization to enhance trade and economic growth.
The gathering brought together distinguished experts from the CAREC Institute (CI), the Asian Development Bank (ADB), and national representatives. Moreover, the event explored the complexities of current trade dynamics, as well as barriers and pathways relating to trade diversification in the region.
PMCG Research is a member of the CAREC network, and the event marked another opportunity for it to address key obstacles and possibilities for cooperation among CAREC countries.
Notably, the CTTN Dialogue Series sets out to analyze the state of trade flows in the CAREC region, gather insights from think tanks from the region regarding diversifying trade flows, and explore new approaches to exports.
In the latest edition of the series, an emphasis was placed on potential hindrances to CAREC trade diversification, and how CAREC economies might benefit therefrom. Furthermore, participants looked at the ways in which regional cooperation can be fostered by initiatives such as the Belt and Road Initiative (BRI).
