Pakistan and Afghanistan have agreed on either to revise Afghanistan-Pakistan Transit Trade Agreement (APTTA) or negotiate a new agreement on transit trade. Both sides will share the decision in this regard. The landmark consensus was developed in the first two-day Technical Meeting on Economic Cooperation between the Islamic Republic of Pakistan and the Islamic Republic of Afghanistan held as follow up of the visit of the President of Afghanistan, Ashraf Ghani in Islamabad.
The meeting was held from June 27 to June 28. The second day session was chaired by Razzaq Dawood, Advisor to PM on Industries, Production and Commerce while the first session was presided over by the Additional Secretary Commerce, Tariq Hudda. Besides, the representatives of the Federation of Pakistan Chamber of Commerce & Industry (FPCCI), Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI) from both sides and prime chambers of Pakistan. The Afghan officials participated in the meeting were included Irshad Popal, Director General (DG), Customs Afghanistan, officials of Afghan Ministry of Commerce and Commercial Attache'' at Afghan embassy.
The meeting while discussing the agenda item of delay in holding Afghanistan Pakistan Transit Trade Coordination Authority (APTTCA) reviewed that the Afghanistan was required to share draft text for revision of Afghanistan Pakistan Transit Trade Agreement (APTTA) for deliberation during 7th APTTCA meeting. However, the Afghan side has neither shared the draft text nor agreed on dates for the 7th APTTCA meeting.
To the point, the Afghan side informed that due to joining of Afghanistan in World Trade Organization (WTO) and accession to TIR Convention, the APTTA needs revision on new agreement has to be negotiated. Both sides, in this regard agreed to share the decision but remain short of giving any deadline.
The meeting also discussed the proposal of the signing Preferential Trade Agreement (PTA) between both neighbours to which Afghan side replied that their relevant ministries are consulting the stakeholders and the response will be sent to Pakistan after domestic consultations. Both sides agreed that Afghan side will share the comments on the draft agreement within one month through diplomatic channels.
During the technical committee, the Afghan side also requested for using Ghulam Khan crossing point for transit purposes. Afghanistan side mentioned that Ghulam Khan crossing point is active and asked Pakistan to operationalise it for transit, currently it is being used for bilateral trade only.
The Pakistan responded that it will consider opening the crossing point for transit in consultations with the relevant stakeholders, to ease congestion at Torkham and response in this regard will be shared in one month.
The issue of the starting of customs operation on Zabul crossing point, which is reportedly already used as crossing point for goods wherein Afghanistan intends to establish customs infrastructure and requested Pakistan side to establish the customs infrastructure to regulate trade at the point. Pakistan side agreed to see the possibilities for such establishment and response in this regard will be shared in one month.
During the meeting, the Afghan side also raised the issue of increase of customs valuation rate on export of certain items to Pakistan, particularly fresh and dry fruits.
The Pakistani side explained that valuation is based on market surveys and other data related to the imported goods besides other factors such as currency exchange rate, legal changes and others. However, it assured of referring the issue to Director General (DG) Valuation, Karachi for review based on international best practices. The FBR will provide response by 12th August 2019 to Afghanistan through diplomatic channels. The Afghanistan side also raised the issue of the Pakistan''s new Truck Axle Load Regulation and informed that trade the new regulation will be burdensome for goods in transit and transportation of commercial goods to Afghanistan. The Afghan side proposed that an alternative could be railway facility for commercial goods and goods in transit. Pakistan side clarified that Pakistan is implementing its axle load policy regulation which is equally applicable to the domestic transporters and it is not Afghanistan specific. However, Pakistan side appreciated the suggestion of Afghanistan and agreed to start working on the possibility of using railway facility for transit and transportation of commercial goods and goods in transit to Afghanistan. In this connection, the Ministry of Railways will provide response by 12th August, 2019 to Afghanistan by diplomatic channels.
In this connection, when this scribe contacted, Ahmad Shah, an Afghan representative of PAJCCI said that they agreed with each and every point of the meeting. He said that this time, they had timeline for them resolution of every issue discussed.
He confirmed the developing of consensus on the review of APTTA that would be discussed further. He said that the business communities of both countries are interested in the promotion of trade relations. But, some policies are creating hurdles in it and stressed need for bringing amendments in them.
He said that in the past, six meetings were held, but decisions taken in them were not implemented in letter and spirit and created trust deficit between both counties.
Zia-ul-Haq Sarhadi, a former senior vice president PAJCCI and president Frontier Customs Agents Group has also welcomed decisions taken in the meeting and called their implementation to fill the trust deficit.
He said that both countries were having reservations on APTTA signed in 2010. He said that according to the draft of agreement bringing amendments in it were must after five years to address those reservations. No review or amendments in it despite the passage of decade had rendered the APTTA redundant.
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