Regional: Strengthening Knowledge and Capacities for the Design and Implementation of Free Trade Agreements Involving Central Asia Regional Economic Cooperation Countries

Industry and trade / Industry and trade sector development

Global and regional trade and investment opportunities expanded. (Pillar 2 of ADB Strategy 2030 Operational Priority 7: Fostering Regional Cooperation and Integration)

Integration of CAREC countries in the global economy enhanced. (CAREC Integrated Trade Agenda 2030 and Rolling Strategic Action Plan 2018 2020)

Evidence-based policy recommendations generated and action plans developed

Technical capacity of CAREC member countries to design, negotiate, implement, and monitor FTAs improved

Roadmap for a CAREC FTA developed

The regional technical assistance (RETA) was approved on 31 August 2020 to strengthen capacities of designing, negotiating, implementing, and monitoring free trade agreements involving Central Asia Regional Economic Cooperation (CAREC) countries. Initial consultations with CAREC governments were made to gather interest on free trade agreement (FTA) capacity building support and affirmative responses were received. Interdepartmental project team has been set up to implement the RETA. The TA Coordinator and Program Manager (total of 5 person-months of national expertise) in late November 2021 to support the TA implementation. It was originally envisaged that a team of consultants will be recruited through a firm to conduct analytical and capacity development activities to produce a comprehensive analysis of FTA guidelines and various thematic assessments. After further review of the deliverables and the detailed terms of reference of the consultants, a minor change in TA implementation arrangements deemed to be necessary. This will realign the technical expertise required to better support and achieve the deliverables as per the TA's design and monitoring framework by (i) reducing the number of experts to be recruited under a firm and include 3 capacity building experts who will primarily focus on the capacity building component and improving the competencies of government officials involved in FTAs; and (ii) hiring the following international positions initially envisaged through a firm, now to be hired through individual consultant selection method: (a) Free Trade Agreement Expert/Trade Economist and Team Leader, (b) Free Trade Agreement Expert/Trade Economist for Thematic Assessments, (c) CAREC Regional Free Trade Agreement Expert, and (d) Global Computable General Equilibrium Model Expert Model Expert; and (iii) reallocating 2 person-months from national Free Trade Agreement Expert/Trade Economist to a national Global Computable General Equilibrium Model expert. The TA minor change in implementation arrangement will better align the consultancy inputs to the TA's outcome and activities and does not entail additional funding, substantially alter, affect, and will not result in any change in the TA's outcome, outputs, and activities. As of March 2021, the three individual international consultants are now onboard: (a) Free Trade Agreement Expert/Trade Economist and Team Leader, (b) CAREC Regional Free Trade Agreement Expert, and (d) Global Computable General Equilibrium Model Expert Model Expert, while recruitment for a company/firm for the capacity building component is ongoing. In parallel, an initial discussion with the CAREC Institute (CI) and the Ministry of Commerce (MofCom) of the People's Republic of China (PRC) was initiated to seek and explore their interest in partnering with ADB. CI confirmed its great interest, readiness, and available human resources for the opportunity to collaborate in research and capacity building. PRC MofCom gave the assurance on its readiness to cooperate with ADB in the arrangements about the regional CAREC-wide FTA in doing research and in providing training and other capacity building programs.

A virtual Country Consultation Meeting on CAREC Free Trade Agreements was held on 7 September 2021.