In light of the COVID-19 pandemic four years ago, open markets were severely impacted, causing disruptions to global trade and production. This led to broken supply chains, reduced connectivity, and a slowdown in the flow of essential goods. As a result, there was an increase in global food and energy insecurity, hindering efforts to achieve the 2030 Agenda for Sustainable Development. Developing countries, including those in Central Asia and the Eurasian region, were particularly affected by these challenges.
Since then, the global economy has shown signs of recovery, thanks to public investments, increased social spending, and the use of innovative digital tools. However, this recovery has been uneven across and within countries, with new shocks and tensions arising. These factors have raised concerns about the resilience of national economies in the post-COVID era. The World Bank’s forecast for global growth in Europe and Central Asia for the next five years is at its weakest in 30 years, mainly due to a slow recovery in China and the euro area.
A recent UNECE regional workshop held in Bishkek, Kyrgyzstan, focused on the impact of the COVID-19 crisis on regional value chains and the potential for future trade and economic integration in the region. Government officials, private sector representatives, and academics discussed the effects of the pandemic on production and trade and explored possible policy responses.
The workshop addressed various issues, including the need to build more resilient supply chains in light of reshoring, the importance of diversifying economies away from natural resource extraction, and the agricultural sector’s strategic role in addressing food security concerns. The Deputy Minister of Economy and Commerce of Kyrgyzstan, Sanzhar Bolotov, emphasized the need to enhance the country’s export potential in agriculture, as 66% of the population lives in rural areas, and 62% of enterprises operate in the agricultural sector.
The discussions also highlighted the potential to use UNECE tools and recommendations to “build back better” by removing non-tariff barriers to trade, both at the border and behind it. Participants examined business process analyses that identified bottlenecks in trade facilitation and quality infrastructure for trade, such as conformity assessment and risk management. They also focused on specific agricultural products exported to Europe and Asia, such as dried prunes and apricots (Kyrgyzstan), vegetable oil (Kazakhstan), and fish products (Armenia).
In light of the growing importance of non-tariff trade measures, UNECE tools, including normative tools and capacity-building instruments, can play a crucial role in improving market access and mitigating the impact of restrictive trade measures on supply chains, such as border closures and disruptions to production and transportation. For instance, streamlined customs procedures and the use of digital solutions based on UN/CEFACT recommendations can simplify transactions and better prepare for future crises, supporting digital and green transformations. Similarly, the use of UNECE guidance on agricultural quality standards and tools to strengthen quality infrastructure institutions for certification and conformity assessment can enhance export capacities in countries with economies in transition.
The workshop also contributed to the development of policy briefs for each country, which will be launched at the ninth session of the UNECE’s Trade Committee, the Steering Committee on Trade Capacity and Standards, in Geneva, Switzerland, from 26-28 June 2024.