ISLAMABAD: Pakistan has reportedly decided to extend the effectivity of Afghanistan Pakistan Transit Trade Agreement (APTTA) for three months on interim basis, as both sides have not yet evolved a consensus on a couple of issues, well-informed sources told Business Recorder.
The APTTA which was signed between Pakistan and Afghanistan on October 28, 2010 will expire on February 11, 2021.
The main disagreement, sources said, between Pakistan and Afghanistan was on the wording of one clause of the proposed APTTA: Afghanistan was insisting that it should be minuted in writing that the new APTTA will be signed under the law and framework of World Trade Organization (WTO) which construes free movement of goods including from India through land route. This condition is not acceptable to Pakistan.
Special Secretary Commerce recently informed the National Assembly Standing Committee on Commerce headed by Syed Naveed Qamar that Pakistani delegation will visit end of January or first week of February 2021 but no progress has been witnessed so far on this front.
Prime Minister Advisor on Commerce and Investment, Abdul Razak Dawood undertook visits to Kabul to discuss APTTA and PTA( Preferential Trade Agreement) the former as head of delegation and the latter as a member of Prime Minister entourage.
In the past, talks between Pakistan and Afghanistan on trade did not succeed as the former always wanted free movement of Indian goods through Pakistani territory.
"Discussions could not conclude due to unflinching stance of Afghanistan on a few issues including signing of agreement under the WTO framework," the sources added.
Afghan delegation, sources said, had left the meetings a couple of times in protest at the viewpoint of Pakistan on a number of contentious issues.
"Minutes of decisions, agreed in the meetings, have not been signed by Afghanistan so far despite repeated requests from Pakistan side at the top level," the sources maintained.
Both sides held discussions on the following themes: (i) reducing cost of APTTA; (ii) trade and investment opportunities in manufacturing sector and; (iii) trade and investment opportunities in agriculture, food, livestock, and minerals.
Issues taken up by Pakistan side were as follows:(i) Pakistani trucks must be allowed to move up-to Tajikistan, Uzbekistan, Turkmenistan border, and Afghan Trucks and vehicles should be allowed to move up to Wagah Border and Karachi Sea Port; (ii) Afghanistan side provides only 5 days for transit shipment of CARs to cross its territory, after which 5000 AFG fine is charged per container per day. The practice should be done away with immediately as there are problems enroute that cause delays beyond 5 days;(iii) time limit for Pakistani trucks and cargo crossing Afghanistan and unloading on the border of Tajikistan should be increased from 5 days to 15 days; (iv) regular periodical meetings of APTTCA should be convened; (v) border facilitations on Afghan side of Torkham border must be undertaken immediately; (vi) Afghanistan needs to develop infrastructure at crossing points in order to facilitate trade and transit; (vii) border facilitations on Afghan side of Torkham border must be undertaken immediately.
Afghanistan side raised the following issues: (i) improvement in services including additions of good transports companies, under customs supervision apart from bonded carriers be considered; (ii) apart from bonded carriers and the railways, the private trucks should be allowed under customs supervision to minimize the freight of ATT; (iii) Afghanistan will host seventh meeting of APTTCA to revise APTTA, in November 2020; (iv) cross stuffing must be allowed from shipping lines' containers to privately owned containers of transit trade practitioners; (v) Currently, there are two Afghan items on Pakistan's negative items list, ie, auto parts and cigarettes which should be removed from the negative list; (vii) immediate actions should be taken to allow partial shipments; (viii) customs valuations rates should be pre-notified on the basis of WTO rules; (ix) demurrage and containers detentions charges should be waived off on containers that were being stranded due to the ongoing Covid-19 pandemic; (x) shipping lines and port terminals must be bound to rationalise their charges; (xi) free days for detention should be increased to 40 days and demurrage to 15 days; (xii) 100% scanning may be reduced at exit points. Pak Customs informed that scanning at Karachi is 20% for ATT; (xiii) the number of scanners at borders should be increased; (ix) dedicated lanes should be established at Karachi port to ease transit trade between Pakistan-Afghanistan; (x) facilitation of the movement of goods via railway lines and investment in the development of Railway lines for operations of transit cargos; (xi) in order to accelerate the process of transit cargo either procedure of physical examination or scanning should be done - in case a cargo is physically examined so that should be exempted from scanning process; (xii) Chaman border must be operationalised 24/7; (xiii) mechanism should be in place for ensuring prevention of illegal extortions including private parking yard; (xiii) preference should be given to perishable goods: they must be cleared immediately upon arrival; (xiv) WeBOC should be fully integrated with ASYCUDA Afghanistan and full access should be given to Afghan traders; (xv) monopoly of TPL trackers should be finished;(xvi) insurance costs may be rationalized; (xvii) bonded carriers cartel must be finished and costs be rationalized and; (xvii) Afghan trucks be allowed to carry goods up to Wagah.
Copyright Business Recorder, 2021
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