CAREC Institute Holds Chai Talk on Global Trade Tensions and Opportunities for Intra-Regional Trade
The CAREC Institute hosted a Chai Talk on 9 July 2025, bringing together policymakers, researchers, and development partners to discuss global trade tensions and explore strategies to boost intra-regional trade. Mr. Josh Hu, Chief of Human Resources and Finance at the CAREC Institute, opened the event by stressing the importance of open dialogue and transparent trade policies in building economic resilience and supporting sustainable growth.
Building on this foundation, the event featured expert presentations and interactive discussions that delved into the region’s current challenges and opportunities. Dr. Elvira Kurmanalieva, Senior Economist at the CAREC Institute, addressed the impact of trade tensions on global market uncertainty and volatility. She noted that while CAREC countries have shown resilience—due to limited direct exposure to certain markets and sustained export activity—they remain vulnerable to the secondary effects of ongoing trade tensions. Dr. Kurmanalieva mentioned that despite challenges there are opportunities for the CAREC region and recommended proactive measures such as coordinated infrastructure development and macroeconomic policy response to mitigate risks.
Dr. Marina Wang, Senior Research Specialist at the CAREC Institute, highlighted China’s role as the anchor of intra-regional trade, examining its macroeconomic environment and institutionalized economic ties with CAREC member states. Using empirical data, she showed that boosting intra-regional trade is both theoretically justified and practically effective, leveraging the region’s complementary strengths. Dr. Wang stressed the importance of investing in connectivity, infrastructure, and financial integration to unlock future trade potential, and urged policymakers to prioritize long-term regional cooperation over short-term measures.
Dr. Richard Pomfret, Professor Emeritus at the University of Adelaide and Adjunct Professor at Johns Hopkins University SAIS Europe, underscored the importance of a rules-based global trade system. He observed that U.S. trade policies have minimal direct impact on most CAREC members except China and Pakistan and encouraged support for multilateral trade frameworks to help diversify regional economies and reduce reliance on a narrow range of exports.
Mr. Roman Mogilevskii, Senior Economist at the Asian Development Bank (ADB), suggested a comprehensive set of policy measures, including major infrastructure projects, harmonization of regulations, climate resilience initiatives, digitalization, and structural reforms to maintain competitive business environments. He reaffirmed the ADB’s commitment to supporting regional integration through public-private partnerships.
During the Q&A session, participants identified renewable energy, tourism, textiles, and agriculture as key sectors with growth potential. The discussion highlighted the need to reduce non-tariff barriers, modernize trade processes, and strengthen negotiation capacity. Participants stressed that proactive regional cooperation, supported by institutions like the ADB, is vital for transforming external pressures into sustainable development.
Ms. Sukhdelger Sosorbaram, Senior Capacity Building Specialist at the CAREC Institute, moderated the dialogue. The Chai Talk highlighted the region’s resilience and stressed the need for stronger cross-border ties, consistent policies, and greater financial integration. Embracing digital technology, addressing climate change, and supporting international trade rules were identified as priorities. The CAREC Institute and its partners remain committed to advancing sustainable growth in the region.