Afghanistan and Pakistan finalised APTTA

On 18th July 2010, Afghanistan and Pakistan finalised a new Afghan-Pakistan Transit Trade Agreement (APTTA) at Islamabad in the presence of US secretary of state Hillary Clinton. Main features of APTTA are as following;-

• Under APTTA it was decided to allow the Afghan trucks to carry Afghan Transit Export Cargo to Pakistani seaports and Wagah.
• Under APTTA Pakistan could use Afghanistan’s territory for its exports to Central Asian nations.
• Under APTTA it was decided to permit The Afghan transport units, on return, to carry goods from Pakistan to Afghanistan under the same procedures and conditions as Pakistani transport units.
• It was also decided to export all transit goods from Afghanistan as per international specifications.
• Under APTTA Afghanistan and Pakistan decided to allow truck drivers and cleaners to enter and exit the two countries on short-term work permits which could be read by biometric devices installed at entry points.
• Under APTTA Afghanistan and Pakistan decided to set up an Arbitration Tribunal bilaterally in case any trade dispute arises between the two nations.
• To deal with the problem of unauthorised trade, Afghanistan and Pakistan agreed to install tracking devices on transport units and to put in place a mechanism for sharing customs related information (IT data and others).
• The “record note” signed by Afghanistan and Pakistan expressed hope that that APTTA could be finalised soon by resolving the all outstanding matters and issues related to APTTA.

The APTTA agreement is an important milestone in the development of Pak-Afghan Trade and Economic relationship which is likely to benefit both Pakistan and Afghanistan.

In Box

India Denied Exports to Afghanistan

• India’s demand to export goods to Afghanistan via Wagah border point was rejected under APTTA agreement between Afghanistan and Pakistan. As per the agreement, Afghanistan can export its goods to India using Wagah but India can’t export its goods to Afghanistan using the same.
• Although, Indian goods could be airlifted to Karachi airport of Pakistan and then from Karachi airport to Afghanistan under international laws, Pakistan will not allow its land route to be used for Indian goods to be exported to Afghanistan.
• In 2009, Afghanistan and Pakistan had signed a Memorandum of Understanding (MoU) and were to sign by the end of the year 2009, a revised trade agreement, allowing Afghanistan-Pakistan-India trade through land route. However, allowing the land route to India generated strong reaction in Pakistan because the issue covered bilateral trade. Therefore, the revised agreement could not be finalised.