SECOND CENTRAL ASIA TRADE POLICY FORUM: ECONOMIC INTEGRATION
THROUGH WTO ACCESSION AND MEMBERSHIP

3-5 JUNE 2024

Almaty, Kazakhstan

Chair's Report on the Outcome of the Second Trade Policy Forum[1]

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1  introduction and Overview

1._       The Second Central Asia Trade Policy Forum: Economic Integration through WTO Accession and Membership took place in Almaty, Kazakhstan, from 3 to 5 June 2024. Hosted by the Government of Kazakhstan, the Trade Policy Forum was organized by the World Trade Organization (WTO) in partnership with the Asian Development Bank (ADB) and the International Trade Centre (ITC).

2._       Taking place eight years after its inaugural edition in Ashgabat, Turkmenistan, in 2016,^[2] the Forum aimed to (i) promote the region's integration into the rules-based multilateral trading system through WTO accession; and (ii) facilitate knowledge exchange by sharing experiences and lessons learned regarding WTO accession and post-accession to enhance participants' understanding of the policy implications of WTO accession and membership. The Forum focused on three key themes: (i) WTO accession process, domestic coordination during accession negotiations, and support for accession and post-accession; (ii) sustainable connectivity through trade facilitation; and (iii) trade and environment –policy tools for climate action.

3._       The representatives from Azerbaijan, Turkmenistan, and Uzbekistan shared updates on their respective accession efforts, underscoring their commitment to the WTO accession process. They acknowledged that WTO membership facilitates economic integration and may attract foreign investment. Kazakhstan, the Kyrgyz Republic, and Tajikistan, as established WTO Members, shared valuable insights from their own accession experiences. They stressed the need for strong domestic coordination, continuity in negotiation teams, and effective communication with stakeholders to navigate the complexities of WTO accession successfully. Additionally, they underscored the critical role of WTO membership in advancing regional economic integration.

4._       In addition to thematic discussions, the event provided a platform for bilateral consultations between acceding governments (Azerbaijan, Turkmenistan, and Uzbekistan) and Article XII WTO Members (Kazakhstan, the Kyrgyz Republic, and Tajikistan). These consultations facilitated dialogue on the benefits and challenges of WTO accession, as well as the relevant technical assistance and capacity-building programs available. The Forum was attended by the following development partners: the ADB, ITC, Islamic Development Bank, World Bank, UNCTAD, and UNECE.

5._       At the high-level session entitled "Central Asia in the Multilateral Trading System: The Case for WTO Accession", WTO Director-General Okonjo-Iweala highlighted the region's role within the global multilateral trading system, emphasizing the potential of the Trade Facilitation Agreement (TFA) to advance the region's connectivity agenda significantly.^[3] Kazakhstan's Minister of Trade and Integration, Arman Shakkaliyev, noted the importance of WTO accession for Central Asian countries and Azerbaijan, asserting that it would strengthen regional trade and economic cooperation. Mr Timur Suleimenov, Governor of the Central Bank of Kazakhstan also delivered keynote remarks drawing on his experience as MC12 Chairman and highlighting the significance of the multilateral trading system from Kazakhstan's perspective.

6._       The Forum concluded with closing remarks from Ms Zhanar Aitzhan, former Chief Negotiator for Kazakhstan's WTO accession.

7._       The third edition of the Forum was tentatively envisaged for 2025.

2  Opening session

8._       The Trade Policy Forum was officially opened by Ms Aizhan Bizhanova, First Deputy Minister of Trade and Integration of Kazakhstan; Ms Lyaziza Sabyrova, Regional Head, Regional Cooperation and Integration, Central and West Asia Department (ADB); Ms Daria Karman, Associate Programme Officer, Trade Policy and Investment Facilitation, Division of Market Development (ITC); and Ms Maika Oshikawa, Director of the Accessions Division (WTO).

9._       The opening statements underscored the region's strategic significance, emphasizing its vast economic, human, and innovative potential. The speakers also commended Kazakhstan's contributions to the multilateral trading system and expressed appreciation for hosting this significant event. As the most recent Central Asian country to join the WTO in 2015, Kazakhstan was poised to celebrate its 10th membership anniversary in 2025. Its active leadership in WTO activities, including the co-hosting of the 12th WTO Ministerial Conference, reflected the country's growing influence within the multilateral trading system. These accomplishments made Almaty an especially fitting venue for the Forum, offering an opportunity to showcase the benefits of WTO membership and foster knowledge sharing across the region. The opening remarks also welcomed the longstanding partnership between the WTO, ADB and ITC in promoting economic integration in the region, particularly through their support for WTO accession.

3  WTO accession: pROCESS AND ACQUIS (Session I)

10._    Session I of the Forum was moderated by Mr Dimitar Bratanov, Counsellor, WTO Accessions Division, who presented on the topic "WTO Accession Process and Acquis." His presentation detailed the stages of the accession process, incorporating the experiences of the region's Article XII Members. The session featured interventions that addressed the challenges associated with WTO accession. Representatives from Azerbaijan (Mr Miralakbar Alakbarli, Ministry of Economy), Turkmenistan (Mr Gurbangeldi Ashyrov, Member of the Committee for Economic Issues, Mejlis of Turkmenistan) and Uzbekistan (Mr Sakhib Saifnazarov, Head of Department, Ministry of Investment, Industry and Trade) shared updates on their domestic reforms as part of their respective accession processes. Azerbaijan noted that despite not yet being a WTO Member, it had implemented most provisions of the WTO Agreements. Customs procedures have been streamlined, and national legislation amended to align with WTO requirements. Azerbaijan's accession was advancing through multilateral negotiations and bilateral talks with over 20 Members. Turkmenistan underscored its commitment to aligning national legislation with WTO principles. The norms of the WTO were recognised as valuable guidance for strengthening national trade and economic relations. Uzbekistan highlighted its focus on modernizing the economy and addressing structural barriers to facilitate WTO accession. By May 2024, it had held 8 WTO Working Party meetings, implemented a system to harmonize legislation with WTO norms, and actively negotiated market access with 30 WTO Members. Negotiations had been completed with 11 Members, and protocols had been signed with 9 others.

11._    Representatives from Kazakhstan, the Kyrgyz Republic, and Tajikistan shared their experiences with WTO accession, reflecting on both challenges and benefits. They shared insights, including discussions on average bound tariff levels and other commitments undertaken as part of accession packages. The representative of Kazakhstan discussed commitments related to intellectual property that had implications for the pharmaceutical market and access to generic medicines. Drawing on historical context, the representative of the Kyrgyz Republic explained how integration into the multilateral trading system after the collapse of the USSR was crucial for preserving the national economy. The representative of Tajikistan emphasized the importance of a well-defined roadmap, a competent negotiating team, and active engagement with negotiating partners. These were identified as critical factors for successful accession.

12._    The exchanges reinforced that WTO accession was a long and complex process, yet it played a pivotal role in integrating national economies into the multilateral trading system. Accession fostered more robust trade and economic policies, ultimately enhancing the global integration of participating economies.

4  DOMESTIC PREPARATION AND COORDINATION IN ACCESSION NEGOTIATIONS: PERSPECTIVES OF NEGOTIATORS (Session II)

13._    Session II was moderated by Ms Maika Oshikawa, Director of the WTO Accessions Division. She opened the session with a presentation on the fundamentals of achieving WTO accession, highlighting the current achievements and the status of ongoing accessions. Her presentation identified five key elements critical to successful accession: political commitment at the highest levels; effective national coordination among government agencies and stakeholders; continuity of negotiating teams to maintain institutional memory and consistency; domestic outreach to raise awareness and build consensus on WTO-related issues; and the pivotal role of the respective Geneva Permanent Missions in advancing negotiations. Speakers from acceding governments shared their experiences in organizing domestic coordination processes for the benefit of the accession negotiations. Speakers from acceding governments shared insights on how they organized and managed their domestic coordination processes to support accession negotiations. These experiences underscored the importance of efficient internal systems to address the complexities of WTO accession.

14._    The representative of Azerbaijan (Mr Miralakbar Alakbarli, Ministry of Economy) highlighted the critical role of regional trade in driving economic growth and sustainable development. He emphasized Azerbaijan's ambition to become a trade hub between Europe and Asia through strategic investments and advancements in digitalization. As part of its WTO membership process, Azerbaijan had established the Commission of Preparation for the Accession of the Republic of Azerbaijan to the WTO. Significant legal adjustments had been made to align with WTO standards, including measures to reduce trade barriers and simplify documentation requirements. Public awareness efforts about WTO accession included organizing roundtables with government officials, distributing informational brochures, and launching a dedicated website (www.wto.az). The representative of Turkmenistan (Mr Ylham Yarashov, Head of Department of Cooperation with the WTO, Ministry of Finance and Economy) highlighted Turkmenistan's commitment to reforms and adherence to international standards in its WTO accession process. Since the establishment of the Working Party in February 2022, with the support of the WTO Secretariat, ITC, ADB, USAID, and other partners, significant progress had been made on the Memorandum on the Foreign Trade Regime. Turkmenistan was focusing on internal preparations, including forming a dedicated negotiating team. Legislative reforms to align with WTO rules were underway, alongside capacity-building initiatives for officials and stakeholders. Preparations were actively ongoing for upcoming WTO negotiations aimed at advancing the accession process in the coming year. The representative of Uzbekistan (Mr Sakhib Saifnazarov, Head of Department, Ministry of Investment, Industry and Trade) emphasized the strong political commitment driving Uzbekistan's WTO accession efforts. The Interdepartmental Commission for WTO Affairs was recently restructured to include representatives from ministries and parliament, enabling swift reforms. In 2023, the Chief Negotiator position had been reassigned to the Special Representative of the President on WTO Issues, who now led a newly established office coordinating efforts between ministries to address WTO Members' enquiries and documentation. All three representatives expressed sincere appreciation to the WTO Secretariat and donor partners for their invaluable support throughout the accession process.

15._    Session II continued with representatives of Article XII Members sharing personal reflections on their countries' experiences with WTO accession, focusing particularly on organizing domestic coordination. Interventions were made by Ms Asya Ashigalieva, Advisor to the CEO of Qaztrade; Ms Mira Tazhikenova, Chief Expert, Centre for Trade Policy Development QazTrade; Ms Syiadat Ormonova, Head of Department, WTO Issues Sector, Ministry of Economy and Commerce; and Mr Abdullo Ziyoiyon, Head of the Main Department of Trade Policy, Ministry of Economic Development and Trade. The speakers acknowledged the complexity and challenges of the WTO accession process, highlighting key obstacles such as difficulties in internal coordination among government authorities and a shortage of skilled personnel, particularly professionals proficient in English. They emphasized the pivotal role of technical assistance from international organizations in supporting successful accession efforts. Speakers underscored that negotiation teams need to possess not only a strong understanding of WTO rules and agreements but also deep knowledge of their country's socio-economic issues to ensure effective participation in the accession process.

5  CENTRAL ASIA IN THE MULTILATERAL TRADING SYSTEM: THE CASE FOR WTO ACCESSION (Session III)

16._     Session III, dedicated to "Central Asia in the Multilateral Trading System: The Case for WTO Accession", was moderated by Ambassador Zhanar Aitzhan, former Minister of Economic Integration and Chief Negotiator for the WTO Accession of Kazakhstan.

17._    In her keynote address, WTO Director-General Okonjo-Iweala highlighted the region's role within the global multilateral trading system, emphasizing the potential of the Trade Facilitation Agreement (TFA) to advance the region's connectivity agenda significantly.^[4] Dr Okonjo-Iweala also commended Kazakhstan for its active participation in the WTO, emphasizing its meaningful contributions to multilateral trade initiatives and its proactive efforts to promote regional economic integration. Kazakhstan's Minister of Trade and Integration, Arman Shakkaliyev, stressed the importance of WTO membership in strengthening regional trade and economic cooperation. Mr Timur Suleimenov, Governor of the Central Bank of Kazakhstan, drawing on his experience as MC12 Chairman, reaffirmed Kazakhstan's commitment to the WTO. Ambassador Zhanar Aitzhan highlighted how WTO membership helped diversify Kazakhstan's foreign direct investment (FDI) portfolio. She noted that prior to accession, 70% of FDI had been concentrated in the commodity and oil and gas sectors, whereas eight years post-accession, 50% of investments were now directed toward non-extractive sectors. 

18._    Mr Ahliddin Nuriddinzoda, Deputy Minister of Economic Development and Trade of Tajikistan shared how WTO membership had facilitated the country's integration into the global economy. He highlighted the 2021 Trade Policy Review, which had provided an opportunity to evaluate Tajikistan's economic progress since accession. Ms Syiadat Ormonova, Head of WTO Issues Unit at the Ministry of Economy and Commerce of the Kyrgyz Republic, emphasized that adherence to most-favored-nation and national treatment principles had contributed to the geographical expansion of trade. She also noted that trade liberalization had spurred growth in the telecommunications sector. Mr Azizbek Urunov, Chief Negotiator for WTO accession of Uzbekistan, stressed the priority of WTO accession as outlined in Uzbekistan's Strategy-2030. He emphasized that uniform trade rules and enhanced transit potential could facilitate goods movement across Asia, while improved access to global markets and value chains could boost productivity. Mr Ylham Yarashov, Head of the Department of Cooperation with the WTO at the Ministry of Finance and Economy of Turkmenistan, described the WTO as a catalyst for economic transformation. He announced that Turkmenistan would soon submit its Memorandum on the Foreign Trade Regime to the WTO. Ms Nazrin Mirzazada, Deputy Head of the Standardization, Technical Regulation, and Certification Department of Azerbaijan, outlined the country's objectives for WTO accession, including diversifying the economy, reducing reliance on the oil sector, and attracting FDI.

19._    The session reaffirmed the region's strong commitment to multilateral trade rules and emphasized the significant opportunities that WTO accession could unlock for economic development, regional cooperation, and integration into global value chains. Participants highlighted the transformative impact of WTO membership on the economies in the region, particularly its role in facilitating integration into the global economy, diversifying FDI beyond commodity sectors, and fostering economic growth through enhanced trade policies.

6  SUPPORT FOR ACCESSION AND POST-ACCESSION: PARTNERSHIP AND OUTREACH (Session IV)

20._    The session opened with a presentation by Ms Anastasia Smirnova, Legal Affairs Officer, Accessions Division, WTO, who highlighted the technical assistance and training programs offered by the WTO to support acceding countries, including e-learning courses, regional policy programs, internships, and the Young Professionals Program. She emphasized the importance of post-accession support through best practices such as developing domestic implementation strategies and fostering capacity-building efforts to enhance capabilities in trade-related matters.

21._    Ms Dorothea Lazaro, Senior Regional Cooperation Specialist at the ADB, outlined the organization's focus on trade facilitation, infrastructure development, and capacity building in Central Asia. Aiming to support WTO accession and enhance regional economic integration, ADB initiatives such as the CAREC Integrated Trade Agenda promoted the harmonization of trade policies, improved connectivity, and streamlined cross-border trade processes. These efforts were designed to boost economic growth and foster deeper integration across the region.

22._    Ms Daria Karman, Associate Programme Officer at the ITC, highlighted the organization's role in strengthening Central Asia's trade promotion and development capacities. The ITC provided technical assistance, market analysis, and trade-related training to enhance export competitiveness and support integration into the global trading system. These efforts contributed to advancing WTO accession across the region.

23._    Mr David Knight, Lead Country Economist and Program Leader for Central Asia at the World Bank, emphasized the organization's extensive involvement in the region through strategic work programs tailored to individual countries' priorities. The World Bank supported trade and private sector development through analytical reports, technical assistance, and investment projects. These efforts aimed to align countries with WTO standards and enhance their economic resilience.

24._    Mr Mir-Anar Mammadov, Economic Affairs Officer at the Division on International Trade and Commodities, outlined the core elements of UNCTAD's accession-related technical assistance. He emphasized the importance of clear negotiating objectives and effective government coordination for successful accession.

25._    The IsDB's WTO-Related Technical Assistance and Capacity Development Program, launched in 1997, focused on strengthening institutional capacities for WTO requirements. The program included studies, policy courses, training, and technical support to assist countries in both accession and post-accession phases.

26._    Ms Aizhan Alibekova, Head of the Law Department at the University of International Business, Almaty, shared the institution's experience in organizing WTO-focused courses. These courses aimed to enhance participants' understanding of WTO agreements and trade policies, while fostering professional networks and supporting countries in their WTO accession efforts.

7  TOWARDS SUSTAINABLE CONNECTIVITY THROUGH TRADE FACILITATION (Session V)

27._    Session V was moderated by Ms Anastasia Smirnova, Legal Affairs Officer, Accessions Division, WTO.

28._    This session focused on the significant growth and future potential of the Middle Corridor for trade in Central Asia, with discussions emphasizing the need for investments in both hard and soft infrastructure. Experts highlighted the strategic importance of trade facilitation, stressing digitalization, sustainability, and regional cooperation. Simplifying customs procedures and streamlining transit rules were underscored as critical priorities, along with initiatives to enhance transparency, streamline operations, and promote paperless trade. Challenges such as high costs and logistical barriers were acknowledged, with participants advocating for the adoption of international best practices and exploration of alternative trade corridors.

29._    Ms Nadezhda Sporosheva (Economic Affairs Officer, Economic Cooperation and Trade Division, UNECE) emphasized the progress in trade facilitation in Central Asia, focusing on digital and sustainable trade solutions to foster economic integration. She highlighted successful reforms in paperless trade and electronic transactions and mentioned ongoing initiatives like the SPECA program and the roadmap for digitalizing multimodal data and document exchange along the Trans-Caspian Transport Corridor.

30._    Mr Roman Mogilevsky (Central and West Asia Department, ADB) stressed the Middle Corridor's strategic role in trade across the Caucasus and Central Asia, noting the region's improved trade performance despite global disruptions. He pointed out increased demand for Middle Corridor shipments due to challenges with ocean and northern routes through the Russian Federation. While transportation costs and logistical barriers remained significant, ADB supported corridor development through infrastructure investments, policy-based loans, and customs modernization efforts, aligned with the CAREC program's integrated trade agenda. He also called for climate-smart solutions and cost reductions to maintain the corridor's competitiveness, underscoring ADB's commitment to regional cooperation and development strategies.

31._    Ms Adelina Harunjen (Associate Programme Officer, Trade Facilitation and Policy for Business, ITC) highlighted Central Asia's strategic location at the crossroads of global trade routes and the ITC's support for implementing the TFA. She outlined the EU-funded "Ready for Trade Central Asia" project, which aimed to eliminate procedural barriers, enhance e-commerce, and empower small businesses in trade. The project focused on key areas such as transparency in trade formalities, simplification and harmonization of procedures, digitalization and paperless trade, and fostering regional cooperation.

32._    Mr David Knight (Lead Country Economist and Program Leader, Central Asia, World Bank) identified challenges in Central Asia's trade facilitation, including high costs, limited routes due to sanctions, and complex border procedures. He highlighted recent initiatives in the Kyrgyz Republic, Tajikistan, and Uzbekistan to modernize customs, conduct time-release studies, and develop digital solutions. Future priorities included exploring alternative trade corridors, adopting international best practices, and leveraging innovative technologies for enhanced regional collaboration. The World Bank also planned to launch a new integrated regional program to support these efforts across Central Asia.

33._     Mr Nurlan Kulbatyrov (Deputy General Director, Centre for Trade Policy Development, QazTrade) provided insights into the state of cross-border data exchange and the implementation of trade facilitation initiatives in Kazakhstan.

8  BILATERAL CONSULTATIONS ON WTO ACCESSION (Session VI)

34._    This session served as a "one-stop shop" for currently acceding governments (Azerbaijan, Turkmenistan, and Uzbekistan) to engage in a series of bilateral meetings with acceded Members from Central Asia (the Kyrgyz Republic, Kazakhstan, and Tajikistan). The session also facilitated discussions with the WTO Secretariat and development partners.

9  TRADE AND ENVIRONMENT - TRADE POLICY TOOLS FOR CLIMATE ACTION (Session VII)

35._    Session VII, moderated by Mr Dimitar Bratanov, Counsellor, WTO Accessions Division, focused on the intersection of trade and environmental issues, a topic gaining prominence within the WTO. In his introduction, Mr Bratanov noted the important role that trade policies can play in addressing climate change and promoting sustainability, referencing the WTO's toolkit for climate action launched at COP28. Speakers highlighted the role of trade policies in achieving climate objectives.

36._    Mr Sajal Mathur (Counsellor, Trade and Environment Division, WTO) highlighted the increasing integration of environmental considerations into trade policies. His presentation detailed how countries incorporated environmental frameworks, such as CITES and waste management conventions, during the WTO accession process. He discussed the work of the WTO's Committee on Trade and Environment and ongoing initiatives, including dialogues on plastics, fossil fuel subsidy reform, and sustainable development, which aimed to align trade policies with environmental goals. His presentation outlined three main trade policy tools for climate action: regulatory measures (e.g. eco-labeling), price mechanisms (e.g. carbon taxes), and support programs (e.g. subsidies for renewables), all within WTO rules. WTO's active role in global climate discussions, including COP events and the publication of reports like the 2022 World Trade Report on Climate Change and International Trade, showcased the potential of integrating trade into climate solutions.

37._    Ms Pramila Crivelli (Economist, ADB) emphasized the importance of trade policy in climate action, particularly in reducing carbon intensities and integrating climate strategies into trade frameworks. She noted the high emissions in developing Asia, driven by carbon-intensive exports, but also acknowledged ongoing progress in the region. She highlighted the role of Aid for Trade initiatives in supporting these efforts and called for increased focus on promoting environmental goods, services, and green financing to accelerate climate-smart trade.

38._    Ms Vidya Nathaniel (Division for Market Development, ITC) explored the relationship between trade and sustainability, focusing on opportunities in environmentally friendly goods and the low-carbon economy. She emphasized the need for developing countries to actively participate in international policy discussions and align their national frameworks to capitalize on sustainable trade opportunities. Key points included integrating environmental regulations into trade agreements and creating cohesive trade policies across value chains. The ITC supported developing countries in policy alignment and negotiations, ensuring businesses can effectively transition to sustainable trade practices.

39._    Ms Ainur Amirbekova (Director, Department of International Integration, Centre for Trade Policy Development, QazTrade) addressed the implications of the EU's Carbon Border Adjustment Mechanism (CBAM) for Kazakhstan, which accounted for 50% of Central Asia's industrial CO2 emissions. She highlighted Kazakhstan's proactive measures, including the adoption of a new environmental code, a strategy for achieving carbon neutrality by 2060, and collaboration with international bodies like the ITC and OECD to support exporters. The presentation underscored Kazakhstan's commitment to sustainable trade within the framework of global environmental initiatives.

40._    Mr Musa Abbaszada (State Customs Committee, Azerbaijan) highlighted Azerbaijan's upcoming role as host of COP29 in Baku in November 2024, reflecting the country's commitment to global environmental leadership. He outlined Azerbaijan's national environmental strategies and initiatives, emphasizing its goals in preparation for the Conference.

10  cONCLUSIONs

41._    The Forum concluded with closing remarks from Ms Zhanar Aitzhan, former Chief Negotiator for Kazakhstan's WTO accession.

42._    Participants of the Second Central Asia Trade Policy Forum commended the collaborative efforts of the Asian Development Bank (ADB), the International Trade Centre (ITC), and the WTO Secretariat in jointly organizing the event. They expressed their gratitude to the Government of Kazakhstan for hosting the Forum and for its active participation, excellent arrangements, and warm hospitality extended to all attendees.

43._    The Second Central Asia Trade Policy Forum served as a valuable platform for discussions on WTO accession, fostering sustainable connectivity through trade facilitation, and leveraging trade policy tools to address climate challenges. The Forum emphasized that WTO accession remained a complex yet important objective for Central Asian countries and Azerbaijan.

44._    The forum highlighted the importance of bringing together experienced negotiators to foster bilateral ties, share experience, and discuss how best to handle challenges which may arise. The critical role played by international organizations in supporting WTO accession efforts (and post-accession work) through technical assistance, policy advice, and capacity building was also recognized.

45._    The third edition of the Forum is tentatively envisaged for 2025.

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