Afghan Transit

As a land-locked country, Afghanistan wanted the country to connect wit with other countries, and the Afghanistan-Pakistan transit trade in 2010 gave the country a chance to grow its economy through import and export. But the transit trade agreement between countries is under the effect of international trade agreements.

But first, what are international trade agreements?

The international trade agreements

There are different types of international trade agreements, such as;

Unilateral Trade Agreement

A unilateral trade agreement is when a developed country lowers the trade restrictions to help foster trading. Like the United States has a unilateral trade deal with developing countries.

Bilateral Trade Agreement

In this type of trade, the trade agreement has two countries who make a deal with one another to lower the restrictions in trade together. For example, Japan and European Union are linked together with bilateral trade agreements.

Multilateral Trade Agreement

A multilateral trade agreement is when multiple countries make a deal to lower trading restrictions together. For example the agreement between the United States, Mexico, and Canada.

Overview Of Afghan Transit Trade And Its Significance

Afghanistan transit trade was signed in 1965 and was a unilateral agreement that allows Afghanistan businessmen to import and export by using the entryways and borders of Pakistan.

The Afghanistan traders were enjoying their business but it was getting hard for Pakistan to keep up with it because there was no benefit for the country. The afghan traders are allowed to use Pakistan and don’t allow Pakistan to use the entryways to reach central Asia. Although the agreement was improvised in 2010.

Examination Of Key International Trade Agreements Affecting Afghan Transit Trade

These are some of the key international trade agreements between countries around the world. the Afghanistan Pakistan transit trade agreements fall under the category of bilateral trade agreement because in the agreement both countries signed a memorandum and allow each other to import and export via each other territory.

The onset of instability in Afghanistan after the 9/11 incident drastically changes the regional stability and transit trade dynamics. The international trade agreements don’t affect the APTTA directly. Although it was made under the international rules that both countries have to follow for smooth import and export. The regional change and the dissolution of the Soviet Union provided opportunities to Pakistan for reviving the ambition regarding access to the central Asian republic. Where Afghanistan was also striving to reconstruct with the international community. The new agreement draft of the Afghanistan-Pakistan transit trade agreement was drafted by the World Bank on the bases of the World Customs Organization Revised Kyoto Convention which is known also as the Federal Board of Revenue, 2011.

The international trade agreements affect the APTTA in ways. As per the unilateral trading agreement, only one country will allow losing the restriction, but not Pakistan, nor Afghanistan was in a state to fully deliver the facility without anything good in return.

The multilateral trade agreement was also a failure because Pakistan was not allowing Afghanistan to transport goods from India to Afghanistan. It was in the agreement that only the goods from Afghanistan were allowed to reach India through the Wagah border crossing.

That is why it seems a good idea to continue the bilateral trade agreement to continue the import and export throughout the countries for the benefit of both.

Analysis Of The Impact Of These Agreements On Afghan Trade Relations

The agreements affect the relationship of Afghanistan with other countries. At first, when the afghan trade transit was signed, it was a unilateral agreement and only allowed Afghanistan to use the borders of Pakistan. But gave a negative impact on traders of Pakistan and the government. Although the revision of the agreement managed the damage the relationship between the country not properly as different factors came up over time like security, the trade routes for Pakistan and Afghanistan to India, Iran, Tajikistan, Uzbekistan, and more.

The multilateral agreement allowed many countries to be a part of the transit trade agreement, but the political condition between the countries become one of the main reasons to keep the transit trade agreement bilateral. Although the trade between the countries like India and Afghanistan, Pakistan and Iran, are not affected negatively by international agreements.