Geography shapes and constrains Central Asia’s economic potential. As landlocked nations, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan face some of the highest trade costs in the world. Limited connectivity, reliance on a narrow set of commodities, and fragmented regional markets hinder economic diversification and resilience efforts. On average, trade costs in the region are 1.4 times higher than those of coastal developing economies.

A different path is also within reach for Central Asia. Its economies are unique in their potential, yet they must move away from fragmentation and cooperate to realize them. Motivated by emerging trade corridors and regional value chains, Central Asia countries could reimagine trade.

Since 2018, through Aid for Trade in Central Asia regional project, supported by the Government of Finland, UNDP has been working to make trade in the region more inclusive, sustainable, and digitally enabled, connecting local economies with emerging trade and market opportunities. With the Third UN Conference on Landlocked Developing Countries conference in Awaza, Turkmenistan, we are spotlighting our learnings from this partnerships and programme. 

Sparking intraregional trade integration

Central Asia economies are more connected with external partners than with each other, with cooperation stunted by overlapping regulations, fragmented quality standards and weak linkages between markets. Regional exports make up a limited share of overall exports, and they rarely co-produce. For instance, Uzbekistan's exports to the region constituted on average just 15 percent of its total exports between 2017 and 2022, while Kazakhstan's corresponding figure was even lower at 8 percent.

Intraregional trade ties are essential if Central Asia is to realize its full potential in the global marketplace. UNDP supports a more dynamic regional economy through streamlining of export-import procedures, harmonization of quality standards, and facilitating platforms that build trust and cooperation. The Central Asian Trade Information Portal (CATI) provides trade intelligence for small businesses and Trade Support Institutions, helping them identify and act on market opportunities.

Weaving connections for trade

The costs of LLDCs’ ‘distance penalty’ is strikingly steep. Studies equate the disadvantage of being landlocked to an implicit 540 percent tariff on trade for some countries​. Yet, Central Asia faces an institutional connectivity gap that only amplifies the effects of its physical distance. Cumbersome border procedures, high logistics costs and limited use of digital tools inhibit trade competitiveness.

The region’s growing interest in the Trans-Caspian ‘Middle Corridor’ reflects a desire for closer ties and streamlined logistics, with cargo traffic surging 2.5 times in 2022, as geopolitics compelled the search for alternative trade routes. Yet, opportunities presented by the Middle Corridor for Central Asia economies are not only about functional gains, they can spur a transformative impact in the region’s economies.

To this end, UNDP is supporting digital customs modernization, public-private dialogues on corridor development and the integration of ‘green logistics’. In 2025, we are scaling our engagement on digital trade, with a focus on e-certification, digital permits, and cross-border e-commerce. 

Building future-proof, sustainable value chains 

Central Asian economies remain reliant on extractives and low-value commodities. But building future-proof and greener value chains will diminish this dependency with a double dividend of climate resilience achieved through economic upgrading.

A core principle of UNDP’s approach to value chains is to build resilience into them. To this end, UNDP has been supporting institutional and business capacities in Central Asia to advance green value chains. We have conducted value chain diagnostics in Kyrgyzstan, Tajikistan, and Uzbekistan to identify value chains' export potential, market opportunities, and environmental and social impacts. Since 2018, UNDP has supported over 1,000 small businesses and producers with the adoption of sustainable solutions, boosting productivity and export volumes by 20 percent on average.

Making trade work 

On the flip side, prosperity without opportunities for all is not an option.

Trade must work for everyone, especially for the inclusion of disadvantaged groups and businesses in the economy. In Central Asia, women entrepreneurs and small businesses contend with the structural barriers of limited access to finance, weak digital literacy, and exclusion from trade networks. 

UNDP is addressing these gaps by training women in digital trade tools, facilitating their participation in cross-border e-commerce platforms, and supporting gender-responsive policymaking. Since 2018, the Aid for Trade project has supported women's economic potential through mentorship, entrepreneurship training, and access to affordable finance, creating 727 jobs for women. These results highlight how trade can be a vector of social transformation when coupled with targeted support. 

Central Asia has the potential to emerge as a resilient, green, and integrated trade hub despite its landlocked status. But this transformation requires coordinated action, bolder policies, and partnerships to break away from the stunting effect of geography. The region’s countries should pursue a new narrative for trade, one that will ignite solutions for closer intraregional ties with all its socio-economic and environmental dividends. Through Aid for Trade, UNDP stands ready to support the region on its journey towards an inclusive and sustainable trade.