On July 18, 2010, Afghanistan and Pakistan reached a landmark agreement on a transit trade deal. The new deal will allow Afghanistan to use the Wagah land route in Pakistan to transport goods by land to India. However, Indian products cannot be sent in the opposite direction.
The use of this land route to connect Afghanistan to India had been a major source of contention during the talks, with Pakistan asserting that India is not meant to be covered by the Afghanistan-Pakistan Transit Trade Agreement (APTTA).
Other provisions of the final agreement include sea access for Afghanistan, via Pakistan's ports, along with the opportunity for Pakistan to use Afghanistan as a gateway to the rest of Central Asia. The agreement also aims to standardise customs and transit permit arrangements. The pact is expected to be a huge boost to the Afghan economy, especially for pomegranate producers and other farmers, who will now have much easier access to international markets.
The Agreement is expected to contribute in the development of South Asia where the transport of goods from Afghanistan to India will be much easier now which will cut the transaction cost. And it will bring Afghanistan into the mainstream of the South Asian Trading Environment. This Agreement, further, can be made a platform for the liberalization of trade relations within the SAARC Region.
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Manish Sharma
Faculty of Law,
ICFAI University, Dehradun,
E-mail: msharma28@gmail.com
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