ISLAMABAD: An agreement is likely between Pakistan and Afghanistan on a new draft of Afghanistan, Pakistan Transit Trade Agreement (APTTA) this month given the substantial positive engagement between the two countries, official sources told Business Recorder.
APTTA was signed on October 28, 2010 and will expire on February 11, 2021.
In the past several efforts were made by the PML-N government to finalize the agreement but progress was stalled due to some unreasonable demands by Afghanistan, particularly including India in the pact and allowing the latter to export its goods to Afghanistan through Pakistan. This led to massive shrinking of bilateral trade between Pakistan and Afghanistan.
APTTA has replaced the old Afghanistan Transit Trade Agreement 1965. Afghan Transit Trade (ATT) is obligatory transport of cargo from/to Pakistani ports to Afghanistan under Article V of GATT1947 Convention on Transit Trade of land locked States 1965, United Nations Convention on Law of the Sea, 1982.
The agreement was concluded keeping in view best international practices and advances made in the fields of information technology, logistics and customs procedures.
As opposed to the previous agreement (ATTA1965), APTTA is based on complete reciprocity, access of Pakistani exports to Central Asia Republics (CARs) region through Afghanistan and a formal arrangement through the Afghanistan Pakistan Transit Trade Coordination Authority (APTTCA) to ensure effective implementation.
According to Commerce Ministry both sides have been working together to utilize this agreement optimally, however there are a few impediments to be addressed including lack of harmonization and inadequate communication between custom authorities of the two countries, return cargo injuring Pakistani industry, High Service Charges on Pakistani transit cargo to CARs and stopping Pakistani trucks at Jalalabad.
The sources said, despite repeated requests Afghan side has not been forthcoming in holding of APTTCA meetings and the last meeting was held in February, 2016.
Talking about recent developments, Commerce Ministry said that Afghan side shared proposals for revision of APTTA in June, 2020. Ministry of Commerce has firmed up comments after stakeholder consultations on Afghanistan's proposals for revision of APTTA 2010 along with proposals from Pakistan's side.
The sources said, as per Article 54 (4) of APTTA, it will complete its life in 2021 and the Law Division has confirmed that the agreement will expire on February 11, 2021.
This has been conveyed to Afghanistan through diplomatic channels as well as during the recent visit of Chief Executive Officer (CEO) of Unity Government of Afghanistan Dr Abdullah Abdullah. Both sides have agreed to hold talks to revise the pact prior to its expiry in February next year.
Talking to Business Recorder, Secretary Commerce Muhammad Sualeh Ahmad Faruqui said that formal negotiations are going to commence soon.
"Our Plan is to start formal negotiations in the current month. Several points have already been exchanged by both sides," he added.
In reply to a question, he said, both sides are agreed to continue the pact and are hoping that the revised agreement will be signed before February 2021.
On a question if there was any progress on giving land route access to India, which was one of the key demands of Afghanistan, he said, that formal negotiations are yet to start, adding that both sides have their own positions on some outstanding issues.
"In the past engagement was not as positive as these days. We will work out something when we sit together this month. Substantial positive engagement has already been witnessed," he continued.
When contacted, Dr Tariq Huda, Member Customs, FBR, said that seminars will be held for awareness of business community before finalization of the revised agreement.
Zubair Motiwala, said that Afghanistan Pakistan Chamber of Commerce and Industry has already sent its recommendations to the Commerce Ministry adding that implementation on APPTA is not in letter and spirit. Citing an example he said according to the understanding 20 per cent containers are to be inspected but presently 100 per cent containers are being checked due to which long queues are witnessed at the crossing points.
He said, Prime Minister's Advisor on Commerce and Investment, Abdul Razak Dawood is expected to visit Kabul soon to discuss trade ties.
Copyright Business Recorder, 2020
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