News Paper: Business Recorder
ISLAMABAD (July 19 2010): Pakistan and land-locked Afghanistan on Sunday signed the Washington-supported transit trade semi agreement (record notes) on political considerations instead of technical grounds. The semi agreement was signed by Commerce Minister, Makhdoom Amin Fahim and his Afghan counterpart Dr Anwar-ul-Haq Ahady at the Prime Minister House Sunday evening.
The ceremony was witnessed by the Prime Minister, Syed Yousuf Raza Gilani and US Secretary of State Hilary Clinton and other top officials of both countries. Official documents reveal that the important aspect of this pact, which will replace the agreement signed by the two neighbouring countries in 1965, will not allow Indian exports to Afghanistan through Wahgah boarder at this stage. Americans were reportedly pushing for the deal during the negotiations. However Pakistan's domestic industry lamented the deal by accusing the Pakistan government of failing to safeguard its interests.
The record notes, sources said, were finalised at 3:00 a.m. Saturday morning in a local hotel in Islamabad after marathon deliberations between the Ministers of the two countries.
The official documents disclosed that a meeting on the Afghanistan- Pakistan Transit Trade Agreement (APTTA) was held between the Afghan Finance Minister Dr Omar Zakhilwal, who reached Islamabad on Saturday evening, Dr Anwar-ul-Haq Ahady, Afghan Commerce Minister, Makhdoom Amin Fahim, Commerce Minister and Dr Abdul Hafeez Sheikh, Finance Minister on July 17, 2010.
The meeting was held in a spirit of co-operation and understanding. The two sides stated their positions and agreed to resolve the issues which could not be settled during the meeting of Joint Working Group (JWG) held on 16-17 July 2010.
After long deliberations the two sides agreed on the following:( i) Pakistan will facilitate Afghan exports to India through Wahgah and ; (ii) Afghan trucks will be allowed access on designated routes up to Wahgah. Afghan cargo will be off-loaded on the Indian trucks back to back at Wahgah. No Indian exports to Afghanistan will be allowed through Wahgah at this stage. However, feasible proposals in this regard could be discussed at an appropriate time in future(no time limit has been given for this purpose). Pakistan will provide a side letter to Afghanistan giving this understanding. This side letter shall not be part of the APTTA.
According to the documents, Afghan trucks will be allowed to carry Afghan transit export cargo on destined routes to Pakistani sea ports and to Wahgah.
All Afghan transit goods shall be transported in: (a) containers of international specification;(b) for a period of one year the cargo shall be allowed on immediately acceptable and verifiable standard of sealable trucks ;(c) oversize and bulk cargo( not imported in containers like ship load), shall be transported in open trucks or other transport units and ;(d) exports of perishable goods in transit( like fruit and vegetable etc shall be transported in open trucks or other transport units.
With regard to visa issues, both countries have decided that the drivers and cleaners shall be allowed to cross border on permits, identified by the biometric device installed at the entry points that will be established by the two countries. In case of failure to agree on a common name of third arbitrator, two names of non nationals and non residents shall be proposed by each side. The third arbitrator shall be selected by drawing lots from the four proposed names.
According to APTTA the following measures shall be adopted to tackle the issue of unauthorised flow back ( smuggling) to Pakistan: ( a) to install tracking device on transport units (b) customs to customs information sharing (IT data and others);(c) provide en-cashable financial guarantees through authorised brokers on Afghan transit goods for an amount equivalent to the import levies of Pakistan which shall be released after the goods cross the border and ;(d) any other measure to be taken by Afghanistan Pakistan Transit Co-ordination Authority (APTCA).
Afghanistan is Pakistan's important trading partner and bilateral trade has grown from $170 million in 2000-01 to US $1.491 billion in 2008-09. Afghan Transit trade through Pakistan has increased from $161 million in 2000 to $1.073 billion in 2009.
On Saturday evening one of the officials who closely monitored the table talks and outside activities had apprised this correspondent that " there is no possibility of a ' no' by either of the two sides due to pressure from the United States.
When contacted one of the businessman who considers this agreement will hurt his industry, said that it appears that the government has bowed down to US pressure as according to him there was deadlock between the technical negotiators of the two countries till Saturday evening.
"I personally feel that Pakistan has compromised our interests by accepting a number of Kabul's inappropriate demands," he said on condition of anonymity. He was of the view that Pakistani political leadership only denied access to Indian goods to Afghanistan through Wahgah border because this was rejected by the Pakistani establishment.
-www.brecorder.com
The ceremony was witnessed by the Prime Minister, Syed Yousuf Raza Gilani and US Secretary of State Hilary Clinton and other top officials of both countries. Official documents reveal that the important aspect of this pact, which will replace the agreement signed by the two neighbouring countries in 1965, will not allow Indian exports to Afghanistan through Wahgah boarder at this stage. Americans were reportedly pushing for the deal during the negotiations. However Pakistan's domestic industry lamented the deal by accusing the Pakistan government of failing to safeguard its interests.
The record notes, sources said, were finalised at 3:00 a.m. Saturday morning in a local hotel in Islamabad after marathon deliberations between the Ministers of the two countries.
The official documents disclosed that a meeting on the Afghanistan- Pakistan Transit Trade Agreement (APTTA) was held between the Afghan Finance Minister Dr Omar Zakhilwal, who reached Islamabad on Saturday evening, Dr Anwar-ul-Haq Ahady, Afghan Commerce Minister, Makhdoom Amin Fahim, Commerce Minister and Dr Abdul Hafeez Sheikh, Finance Minister on July 17, 2010.
The meeting was held in a spirit of co-operation and understanding. The two sides stated their positions and agreed to resolve the issues which could not be settled during the meeting of Joint Working Group (JWG) held on 16-17 July 2010.
After long deliberations the two sides agreed on the following:( i) Pakistan will facilitate Afghan exports to India through Wahgah and ; (ii) Afghan trucks will be allowed access on designated routes up to Wahgah. Afghan cargo will be off-loaded on the Indian trucks back to back at Wahgah. No Indian exports to Afghanistan will be allowed through Wahgah at this stage. However, feasible proposals in this regard could be discussed at an appropriate time in future(no time limit has been given for this purpose). Pakistan will provide a side letter to Afghanistan giving this understanding. This side letter shall not be part of the APTTA.
According to the documents, Afghan trucks will be allowed to carry Afghan transit export cargo on destined routes to Pakistani sea ports and to Wahgah.
All Afghan transit goods shall be transported in: (a) containers of international specification;(b) for a period of one year the cargo shall be allowed on immediately acceptable and verifiable standard of sealable trucks ;(c) oversize and bulk cargo( not imported in containers like ship load), shall be transported in open trucks or other transport units and ;(d) exports of perishable goods in transit( like fruit and vegetable etc shall be transported in open trucks or other transport units.
With regard to visa issues, both countries have decided that the drivers and cleaners shall be allowed to cross border on permits, identified by the biometric device installed at the entry points that will be established by the two countries. In case of failure to agree on a common name of third arbitrator, two names of non nationals and non residents shall be proposed by each side. The third arbitrator shall be selected by drawing lots from the four proposed names.
According to APTTA the following measures shall be adopted to tackle the issue of unauthorised flow back ( smuggling) to Pakistan: ( a) to install tracking device on transport units (b) customs to customs information sharing (IT data and others);(c) provide en-cashable financial guarantees through authorised brokers on Afghan transit goods for an amount equivalent to the import levies of Pakistan which shall be released after the goods cross the border and ;(d) any other measure to be taken by Afghanistan Pakistan Transit Co-ordination Authority (APTCA).
Afghanistan is Pakistan's important trading partner and bilateral trade has grown from $170 million in 2000-01 to US $1.491 billion in 2008-09. Afghan Transit trade through Pakistan has increased from $161 million in 2000 to $1.073 billion in 2009.
On Saturday evening one of the officials who closely monitored the table talks and outside activities had apprised this correspondent that " there is no possibility of a ' no' by either of the two sides due to pressure from the United States.
When contacted one of the businessman who considers this agreement will hurt his industry, said that it appears that the government has bowed down to US pressure as according to him there was deadlock between the technical negotiators of the two countries till Saturday evening.
"I personally feel that Pakistan has compromised our interests by accepting a number of Kabul's inappropriate demands," he said on condition of anonymity. He was of the view that Pakistani political leadership only denied access to Indian goods to Afghanistan through Wahgah border because this was rejected by the Pakistani establishment.
-www.brecorder.com
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