As eleven member countries prepare for the CAREC Business Forum 2025 on 18-19 November, it is time to reflect on how the member countries contribute to a shared regional agenda. From modernized trade to the digital trade system, each state plays a part in shaping the region’s trade landscape under the CAREC Integrated Trade Agenda (CITA) 2030 and CAREC-wide investments.
With nearly $27.7 billion invested in these initiatives and significant progress achieved through trade facilitation and corridor improvements, each country plays a distinct role in shaping the region’s future.
Let us take a look at the major CAREC projects that are uplifting trade corridors and modernizing the region.
Regional Improvement of Border Services (RIBS)
One of the most important initiatives supporting trade and connectivity is the Regional Improvement of Border Services RIBS project. The project plays a central role in strengthening border operations between the Kyrgyz Republic and Tajikistan, two key transit countries located along major CAREC corridors.
This project traces its timeline back to its approval in March 27, 2013, it was expected to complete in 2020, but was extended till 2023. The project shows how collaborative investment can reshape regional trade. Through the upgrade facilities, new inspection posts and establishment of a national single window.
These improvements help trades move goods more smoothly and support the broader CAREC vision of a connected and competitive region. RIBS is the center where it is needed the most at two strategic border crossing points, the Karamyk and the Guliston.
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CAREC Advanced Transit System (CATS)
CAREC Advanced Transit System(CATS) introduces a modern approach to simplifying transit procedures while safeguarding customs interests. At the core of this program is a Comprehensive risk-based Guarantee designed specifically to provide flexibility for operators while managing high standards of compliance.
The primary target is experienced business that have been registered for at least 5 years and maintain a strong record of compliance and custom regulations. These companies gain the ability to manage multiple transit journeys under a single guarantee, reducing administrative burden and expediting regional trade.
The CATs guarantee allows multiple transit movements up to a set financial limit, customs authorities determine the level of coverage, ranging from 100% to reduced coverage at 75%, 50% or even 25% of the reference amount, depending on the operator’s experience, financial standing and risk profile. CATS guarantees are fixed for periods ranging from a week to a year.
This system aligns regional transit procedures with practices, including the World Customs Organizations, Revised Kyoto Convention and the World Trade Organization. By facilitating close cooperation between customs authorities and business, CATs offers a risk based guarantee system, which balances security and efficiency, ultimately contributing to a more integrated and reliable CAREC transport network.
Inner Mongolia Sustainable Cross-Border Development Investment Program
Complementing the border modernization efforts, the developing economic cooperation zones project, particularly in Mongolia, has created integrated industrial and logistics hubs designed to link local production with regional markets.
Basically, these zones provide comprehensive infrastructure. By facilitating the trade of specialty agricultural products and manufactured goods, these zones help local businesses integrate into regional value chains.
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The success of this initiative is reflected in Xinjiang Xinghongbo Industrial Co, Ltd in China, where logistics parks combine storage, transportation and market access to serve both domestic and cross border trade efficiently.
China has also advanced sustainable trade development through the Inner Mongolia Sustainable Cross-Border Development Investment Program. By drawing on China’s experience in integrating industrial parks, logistics hubs and e-commerce platforms initiatives under this program.
Corridor Performance Measurement and Monitoring (CPMM)
Beyond infrastructure, CAREC has made significant strides in trade facilitation and alignment with international standards. Member countries are actively supporting the implementation of the World Trade Organization Trade facilitation agreement (WTO TFA) and igniting trade processes to improve efficiency.
Uzbekistan and Pakistan have integrated into the global ePhyto system, allowing electronic exchange of sanitary and phytosanitary certificates. Georgia is piloting artificial intelligence and robotic process automation to optimize trade procedures, while Manglia explores blockchain technology for electronic certificates of origin. This basically creates a seamless trade ecosystem, reduces bottlenecks and promotes transparency across the region.
To monitor and enhance trade corridor performance, CAREC developed the Corridor Performance Measurement and Monitoring (CPMM) system, an empirical tool that uses real-time data from private sector transport associations. By tracking travel times, costs and efficiency along six priority transport corridors, CPMM provides actionable insights for targeted investments and corridor optimization.
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Driving Regional Growth Through Cooperation
Through these projects, CAREC has strengthened trade, logistics and economic cooperation across its eleven member countries, like Afghanistan, Azerbaijan, China, Georgia, Kazakhstan, Kyrgyz republic, and Mongolia.
These initiatives have not only modernized physical infrastructure and digitized trade procedures but also created sustainable industrial zones, integrated logistics hubs and advanced technology solutions. By improving border management, streamlining transit systems and embracing innovation, CAREC is helping its members integrate better into the global economy while promoting inclusive growth.
These initiatives and investments under CAREC are closely aligned with CAREC Integrated Trade Agenda 2020 (CITA), which aims to enhance the region’s trade potential, improving economic resilience.
As the CAREC Business Forum 2025 draws near, these projects demonstrate the tangible benefits of regional cooperation, highlighting the transformative potential of coordinated investments and shared development goals.
Tayyaba Arif
Tayyaba Arif is a student of International Relations, and takes keen interest in conflict reporting and the dynamics of regional and global affairs. She is especially committed to SDG 17, and believes in effective partnerships and promoting cooperative initiatives. She can be reached at tayyabarrif0@gmail.com
