Ten Islamic, mostly Central Asian nations met in Afghanistan on Wednesday to push their aim of slashing tariffs and freeing up trade in the region once spanned by the Silk Road.
Afghanistan, after decades of war and occupation, told the Economic Co-operation Organisation (ECO) it hoped to become a "land bridge", revitalising the ancient trade route that linked Europe and the Far East.
The ECO groups Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan and Uzbekistan, which together make up six percent of the world population, according to the organisation.
Integration of the 10 ECO nations was essential to build up trade in the region, Afghan Commerce Minister Hedayet Amin Arsala told ministers, officials and other delegates at the two-day meeting in Kabul.
"It is only through regional co-operation and greater economic integration that we will be able to use the enormous resources that we have in the region for the betterment of the lives of our people," he said.
The Afghan government wanted to establish "an open trade regime which would allow Afghanistan to capitalise on its position as a land bridge between the Central and South Asian region," he said.
Afghanistan has the lowest tariffs among the 10 countries - on average just over four percent - compared to Pakistan's tariffs of up to 120 percent.
Members had committed to cutting tariffs to no more than 10 percent within 10 to 15 years, although some items may be exempt, said Afghanistan Investment Support Agency vice president Suleman Fatimie, an organiser of the meeting.
Central Asia's proximity to rapidly growing markets such as China and India made clear the rationale for co-operation, said Asian Development Bank Afghanistan head Brian Fawcett.
The transit of goods through the region was still hampered, with truckers and traders facing daily road closures and border restrictions, he said.
Recently, Pakistan called for early implementation of the ECO transit transport framework agreement and the agreement on promotion and protection of investment. The move, if implemented, would facilitate removal of existing barriers on trade and investment with the ECO region and give impetus to common goal of economic prosperity.
Islamic regional grouping formed in 1985 by Iran, Pakistan, and Turkey to reduce customs tariffs and promote commerce, with the aim of eventual customs union. In 1992 the newly independent republics of Azerbaijan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan were admitted into the ECO. The headquarters are in Teheran, Iran.
Comments
Comments are closed.