Afghanistan-Pakistan Transit Trade Agreement (APTTA)
- Afghanistan-Pakistan Transit Trade Agreement (APTTA) is a bilateral trade agreement that was signed in 2010 between Pakistan and Afghanistan.
- Afghanistan Transit Trade Agreement” was signed in 1965, which granted Afghanistan the right to import duty-free goods through Pakistani seaports.
- Notably, this did not offer Pakistan reciprocal rights to export goods to the then “Soviet Union or Central Asian Republics (after the fall of the USSR)”.
- In 2010, for greater regional connectivity between South Asia, Central Asia and the Middle East APTTA became a reality.
- While APTTA was believed to be key to jumpstart the Afghan economy, it has rather proved to be an unfavourable agreement.
What are the problems with APTTA?
- Pakistan has lately closed its borders with Afghanistan multiple times, where it has used blockades for arm-twisting political circles in Afghanistan.
- This usually causes priced to spiral in Afghan markets as costlier or smuggled imports are what satiates demand.
- The primary grievance that Afghanistan has with the current APTTA is that it does not allow for bilateral trade with India.
- Afghan goods can unload at Wagah for Indian destinations, but cannot take Indian goods back to Afghanistan.
- This is because Pakistan contends that this would fuel a black market of Indian goods in Pakistan through back channels.