|
|
o------------------------------------------------------------------------------------------------
International trade
Strategic Goal:
Integrate Afghanistan into the regional and global
economy
Integrating Afghanistan’s markets with the global
and particularly regional economies will be of
critical importance to the achievement of the goals
of the MoC. In order to capitalize on its strategic
location, the Ministry is committed to maintaining
an outward orientation in its policies.
Linkages
with global and regional markets will not only
ensure the competitiveness of domestic industries
but also add to the attractiveness of Afghanistan
for investors. With the development of an effective
system for international trade and transit, a large
portion of future investments will aim to capitalize
on Afghanistan’s strategic position as a land-bridge
in the Central and South Asia region – using
Afghanistan as a regional platform for export.
The
key objectives in this area are to:
1. Pursue opportunities to liberalize and expand
trade within the region
In the last three years, the MoC has actively
participated in regional economic initiatives
including the Economic Cooperation Organization
(ECO) as well as bilateral negotiations with
neighboring countries including Iran, India,
Pakistan, Tajikistan and Uzbekistan.
The priorities for the immediate future will require
a review of the existing regional trading
arrangements with regard to their effectiveness and
implementation – identifying areas in which these
agreements can be strengthened. Further
opportunities for regional integration include
possible participation in the South Asia Free Trade
Area (SAFTA) and the Central Asian Regional Economic
Cooperation (CAREC) program.
2.
Pursue WTO Accession
Having received observer status in December 2004,
the focus now is for Afghanistan to move as quickly
as possible through the accession process. Accession
will allow Afghanistan to become a full member of
the global economic community and send a strong
signal to international investors and traders with
regards to the stability and parameters of the trade
regime.
As the lead ministry for WTO accession, the MoC is
developing a strategy and timetable for accession as
well as a plan to take advantage of the capacity
building resources and opportunities provided by
observer status.
3.
Maximize the benefits of preferential market access
agreements for Afghan exporters
Outside of the region, Afghanistan is currently
eligible for preferential import duties under the
European Union’s (EU) “Everything but Arms”
Initiative (EBA), the United States’ Generalized
System of Preferences (GSP) program as well as LDC
preferences granted by Canada and Japan.
Additionally, the Government of Afghanistan has
recently concluded a “Trade and Investment
Framework” (TIFA) agreement that could provide
additional benefits in terms of strengthening the
trading relationships.
In order to take maximum advantage of these
preferences, the MoC will undertake systematic trade
analysis to identify and exploit the market
opportunities provided for Afghanistan’s exports.
Relevant links and downloads:
Consultative Group for Trade and Investment (T&I CG)
List of
Afghan commercial attaches (*.xls)
Trade
agreements signed by Afghanistan (*.xls)
|
|
WTO
Accession Update
Currently
there are 150 member countries in the WTO and in the nearest future
this number will increase. This means that almost every nation
aspiring to create a modern and effective economy and to participate
in the world trade equally strives for WTO membership. Afghanistan
is not an exception.
The Islamic Republic of Afghanistan renewed its request for WTO
membership on 21 November 2004. Shortly thereafter, a WTO Working
Party was established at the General Council meeting on 13 December
2004, and Afghanistan was granted observer status. A draft for the
Memorandum on the Foreign Trade Regime was initiated. Afghanistan
has a relatively open trade regime, and major policy changes are not
needed to bring it into line with WTO standards. However, it does
need a greater political and administrative capacity.
Accession to the World Trade Organization requires a wide-ranging
commitment from both government and industry in the mastery and
implementation of a wide range of technical standards and
procedures.
Formal WTO requirements include:
• Conformity of national legislation with obligations under all WTO
agreements.
• Negotiating schedules on market access concessions for industrial
and agricultural goods.
• Negotiating schedules on agricultural support.
• Negotiating schedules on specific commitments for market access
and national treatment for services.
• Implementing the notifications and transparency requirements
under WTO agreements.
Accession to the WTO will help consolidate economic reform and the
rule of law in Afghanistan. The WTO membership offers a range of
benefits. Enjoying these benefits is, pragmatically, the goal of
joining the WTO. By acceding to the WTO, Afghanistan pursues the
following goals:
•
Improvement of existing conditions for access of Afghanistan’s
products to foreign markets and provision of non-discriminatory
treatment for Afghan exporters;
• Access to the international dispute settlement mechanism;
• Creation of a more favorable climate for foreign investments as a
result of legal system change in accordance with the WTO standards;
• Expansion of opportunities for Afghan investors in the WTO
member-countries;
• Creation of conditions for growth of domestic production, quality
and competitiveness as a result of increased flows of foreign goods,
services and investments to the Afghanistan’s market;
• Participation in negotiations of the international trade
agreements taking into account national interests;
• Improvement of the image of Afghanistan as a competent
international trade participant.
The objective of the accession negotiations is to achieve the most
favorable conditions for Afghanistan joining the WTO, i.e. the best
balance possible between the benefits of accession and the
concessions in forms of tariffs reduction and domestic market
opening. The balance of rights and obligations of Afghanistan during
its accession to the WTO should contribute to its economic growth
and not vice versa.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
