The Ministry of Commerce (MoC) has claimed that Washington has agreed not to press Islamabad for a land transit route from New Delhi to Afghanistan, after discussions between the Obama administration and the Zardari government.
"We have successfully convinced Washington that land transit route for India is impossible in the present circumstances and they US agreed with Pakistan's viewpoint," said senior Joint Secretary of Commerce Shahid Bashir, who headed the Pakistan team, which negotiated the new transit trade agreement with the Afghan panel.
In reply to a question, he said that Pakistan could not allow any facility to New Delhi, considering the "stalled" composite dialogue between the two countries. For the first time, Afghanistan's private sector had conceded in writing that smuggling of goods was going on, and promised to curb this practice in close co-ordination with their Pakistani counterparts, he added.
The first meeting of Pakistani and Afghan businessmen will be held on January 10, 2010 at Karachi to devise a mechanism to stop smuggling. Answering another question, he revealed that the USAID, with offices in Kabul and Islamabad, would also conduct a study to suggest measures to curb smuggling. According to Bashir, smuggling, road transit facility for India and transportation of goods were three main issues, which were discussed during the three-day deliberation.
He further said that Afghanistan had also agreed not to further pursue Pakistan for land transit route for India after the Afghans were given access to Wagha border on Pakistani side for transportation of goods. Replying to another question, he said that Afghanistan had also given a commitment that it would abolish 110 percent duty on Pakistani goods being transported to Central Asian Republics (CARs).
According to Afghan delegation, this issue is already pending in the parliament and it is their decision to abolish the duty as early as possible. He said Afghanistan would be allowed 60 or 70 trucks monthly for transporting of goods from Afghanistan to Pakistan border at Wagha.
Two exit points from Pakistan to Afghanistan, ie Torkham and Chaman, would be the only entry points, while the option for the third point of Ghulam Khan Kelay in Waziristan would be made operational later, Bashir added. He further said that Afghan empty trucks would not be allowed beyond Peshawar and the set mechanism for the APTTA would remain intact.
He said the Afghan side also requested from their Pakistani counterparts that the empty Afghan trucks from Wagha to Kabul be permitted for carrying Pakistani goods to land-locked Afghanistan. "We did not give any commitment on this issue, but assured them of our consideration," Bashir added.
Both the sides also proposed that the letters of credit (LCs) should be opened for all Afghan transit imports, however, this is not possible due to lack of LC facilities in Afghan banks as well as existing Afghan laws, but it would be initiated as and when possible, said a memorandum of understanding (MoU) signed between the private sectors of both the countries.
It further said that both the sides would present their lists of sensitive items of illicit trade that required immediate attention. Pakistan, at present, shortlisted five items - black tea, milk powder, tyres, electronic items (TV sets, refrigerators and air-conditioners) and fabric and garments of synthetic and artificial fibre. From the Afghan side, the agreement said that the items made of cotton textiles, medicines, cooking oil, marbles, fertilisers and plastic goods would be included.
The private sector of both sides also agreed to create a mechanism to address their apprehensions and also agreed that the chambers can implement self-restraint over their imports by devising modus operandi for the implementation, ie licensing, permits, guarantee including penal measures etc and other items, details of which will be mutually discussed between the two parties within the shortest possible time, said the MoU.
To prevent the derailing and back flow of cargo during transit, it was agreed that installing electronic tracking mechanism should be made mandatory on all vehicles, carrying the said cargo in accordance with the best international practices.
Further, both sides also agreed that drivers of such vehicles should be held responsible for the ultimate delivery of such cargo to its proper destination, the agreement said. It was also agreed that barring force majeure, cargo cleared from Pakistani seaports must reach Afghanistan within 30 days of their clearance from the said ports.
The mechanism of such control, eg creation of website elaborating the information of movement of cargo to the chamber, will be mutually agreed upon in the subsequent meeting of the chambers, which is scheduled to be held in Karachi in the second week of January, 2010, it added.
They also agreed to exchange, in the future, lists of their grievances regarding transit matters and they also requested their respective governments to take certain measures regarding the reduction of customs tariff for the purpose of reducing illicit trade and encouraging formal commerce between the two sides, the agreement added.
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