Indian goods transit to Kabul via Wagha: Afghan proposal rejected

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Indian goods transit to Kabul via Wagha: Afghan proposal rejected

ISLAMABAD (November 25 2009): Pakistan has outrightly rejected a proposal of Afghanistan to allow transit for Indian goods through land route of Wagha under the new Afghanistan Pakistan Transit Trade Agreement (APTTA). Sources told Business Recorder on Tuesday that the Afghan government placed this proposal before the Pakistani authorities during the fourth round of negotiations on the new APTTA, held on November 21-22, 2009 in Kabul.

According to sources, the Afghan government wanted that the Afghan transport industry be allowed to use land route of Wagha for transit of Indian goods to Afghanistan, under the APTTA. The proposal mainly related to use Pakistan land route for bringing Indian goods to Afghanistan.

However, the Pakistani delegation turned down the proposal, taking the plea that Pakistan is discussing the APTTA with Afghanistan, which has nothing to do with the transit of Indian goods. The government has not allowed Pakistani importers/exporters to bring Indian goods through Wagha border except a few essential commodities. Pakistan has no bilateral agreement with India on transit of goods to Afghanistan.

Therefore, Pakistan would not incorporate any kind of such proposal as part of the new APTTA.n Sources said that the representatives of Ministry of Commerce, Ministry of Foreign Affairs and Federal Board of Revenue (FBR) expressed reservations over the Afghan proposal during negotiations in Kabul.

Pakistan would not provide any facility to the Afghan transporters to use Wagha border for bringing Indian goods. During the two days meeting, both sides agreed to take effective measures to check smuggling under the existing Afghanistan Transit Trade Agreement (ATTA). The Afghan side was of the view that smuggling is a criminal offence and it is the internal matter of Pakistan to check movement of goods coming back to Pakistan.

The terms of reference were agreed on checking unauthorised trade between Pakistan and Afghanistan. It has been agreed to carry out a comprehensive survey on smuggling to check the actual volume of illegal trade and its implications on the economy of both countries. There is need of an institutional mechanism to document legitimate trade between Pakistan and Afghanistan.

The study would be conducted by the USAID for carrying out a comprehensive study on smuggling within a six months period. The study would be presented before Pakistan and Afghanistan for implementation purposes. During the meeting at Kabul, the two sides also discussed proposal to allow Afghan transport industry to come up to Karachi Port for taking transit consignments. Pakistani officials proposed that the customs authorities be empowered to collect duty on behalf of the Afghan government.

The customs duty collected would be transferred to the Afghan authorities on regular basis, eliminating the menace of smuggling under transit trade. The representative of Afghan customs could also be deputed at Pakistani ports to monitor the process of collection of duty. The next round of negotiations would be held in Islamabad. It is worth mentioning that a Pakistani delegation had held detailed meetings with their Afghan counterpart on the new APTTA at Kabul.