Content Group 3 of Afghanistan

Trade Updates

After the first air corridor between Afghanistan and Turkey was launched in May 2018, officials from the two states spoke about Afghanistan-Turkey trade ties and the importance of the new air corridor for mutual trade. Afghanistan's Minister of Commerce and Industries, Humayun Rasa stated that a new trade agreement will be signed between the two countries in the near future, which would increase Afghanistan's exports to Turkey.

Multinational Trade Agreements

Active

1. Afghanistan-India Bilateral Partial Scope Agreement: This agreement covers trade in goods and entered into force in May 2003. India is Afghanistan's second-largest export market; as of 2016 (latest direct data available), India received 38.6% of Afghanistan's total exports, of which edible fruit and nuts, peel of citrus fruit and melons made up the highest percentage.


2. South Asian Free Trade Agreement (SAFTA): SAFTA's signatories are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. The agreement covers trade in goods and originally entered into force on January 1, 2006; Afghanistan joined later on August 7, 2011. Under SAFTA, Afghanistan currently has duty-free access to India for all traded goods, except cigarettes and alcohol, and pays duties of 5% to Pakistan on non-sensitive goods.


3. Afghanistan-Pakistan Transit Trade Agreement (APTTA): APTTA came into force on June 12, 2011, with the purpose of facilitating the movement of goods between the two countries, as well as to India and mainland China and the rest of the world through the ports at Karachi, Port Qasim and Gwadar. The main provisions of the agreement include freedom of transit through each state's territory via pre-defined routes, facilitation of clearance procedures, the establishment of technical requirements for the admittance of road vehicles and drivers, and the elimination of customs duties and taxes on all goods in transit, and means of transit and transport, regardless of destination or purpose.


4. Afghanistan-United States Trade and Investment Framework Agreement (TIFA): TIFA was signed and came into effect on June 26, 2004. It has aimed to establish a framework for the discussion of economic relations between Afghanistan and the United States. Since then, there have been annual meetings of the United States-Afghanistan Council on Trade and Investment, established under the auspices of the TIFA, to further the bilateral cooperation needed to achieve Afghanistan's goals of creating an environment conducive to economic reform, private sector development and trade expansion.

Signed But Not Active

Economic Cooperation Organisation Trade Agreement (ECOTA): ECOTA is a trade agreement between Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan and Uzbekistan that was signed on July 17, 2003. The agreement is not yet in force.

Sources: WTO Regional Trade Agreements database, Afghanistan Customs Department