Pakistan to get transit facility to Central Asian States;denies India land transit route to Afghanistan.Pakistan and Afghanistan have reached an understanding on all major issues relating to the Afghan-Pakistan Transit Trade to conclude the process of negotiations in this regard.
It has been agreed that no Indian export to Afghanistan will be allowed through Wagah. However, Afghanistan would have the opportunity to export to India. Reciprocally, Pakistan would be able to export its goods to Central Asia through Afghanistan.
The broad-based record note signed Sunday evening at the PM House in the presence of Prime Minister Syed Yousuf Raza Gillani and US Secretary of State Hillary Clinton states that; Pakistan and Afghanistan hope that resolution of all outstanding matters relating to the finalisation of Afghan-Pakistan Transit Trade Agreement would help in the early signing of the Agreement, after completion of legal processes from both sides. The Agreement thus signed would be an important milestone in the development of Pak-Afghan trade and economic relationship to the mutual benefit of both sides.
The broad-based record note signed by Makhdoom Muhammad Amin Fahim, Minister for Commerce and Dr. Anwar-ul-Haq Ahady, Minister for Commerce and Industries of Afghanistan mentions that the Afghan trucks will be allowed to carry Afghan transit export cargo on designated routes to Pakistani seaports and Wagah. The Afghan transport units, on return, shall be permitted to carry goods from Pakistan to Afghanistan under the same expeditious procedures and conditions as Pakistani transport units.
It was also decided that all Afghan transit goods would be exported in containers of international specifications. For a period of three years, the cargo will be allowed to be transported in internationally acceptable and verifiable standards of sealable trucks while the oversize and bulk cargo, which is not imported in containers, shipload will be transported in open trucks or other transport units. It was also agreed that export of perishable goods in transit would be transported in open trucks or other transport units.
According to the record note signed, the drivers and cleaners will be allowed to enter/exit the two countries on permits, identified by the biometric devices installed at the entry points.
It was also agreed that an Arbitral Tribunal would be established bilaterally. In case of failure to agree on a common name of third Arbitrator, two names of non-nationals and non-residents will be proposed by each side and the third Arbitrator will be selected by drawing lots from the four proposed names.
To tackle the issue of unauthorised trade, it has been agreed that tracking devices on transport units will be installed and a mechanism for customs-to-customs information sharing (IT data and others) will be established. In this context, it has also been agreed that financial guarantees equal to the amount of import levies of Pakistan have to be deposited by authorised brokers, customs clearing agents to check the un-authorised trade and these deposits will be released after the goods exit the country.
In case, the goods do not exit the country within specified time, the guarantees will be encashed by the customs authorities. Moreover, the agreement to be signed will be subject to any other measures to be taken by APTTA.
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