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Legal Challenges Facing Afghanistan’s Transit Trade with Pakistan

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The WTO Transit Regime for Landlocked Countries and its Impacts on Members’ Regional Transit Agreements

Part of the book series: European Yearbook of International Economic Law ((EYIELMONO,volume 17))

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Abstract

In order to compete successfully in international trade, a country needs to establish simple and convenient routes to access world markets. Looking at different trade routes, trade by sea is a preferred option providing short and economic means for the shipping of goods. Nearly 90% of the world’s trade accounts from trade by sea. Its popularity arises from the fact that it is not only cheaper in terms of transaction costs but also shorter in terms of transit time compared to overland trading. Therefore, the lack of direct access to the sea impedes the growth potential of landlocked countries in international trade. This particularly affects least-developed countries (LDC), as the majority of them are landlocked. If one wants to ensure, that overall goals such as international trade growth and development of LDC economies are achieved, freedom of transit and free access to and from the sea plays a vital role.

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Notes

  1. 1.

    UNESCAP, Transit Transport Issues in Landlocked and Transit Developing Countries, Landlocked Developing Countries Series 1, UN Doc. ST/ESCAP/2270 (2003); see also Jayanta (2005).

  2. 2.

    See for example Huarte Melgar (2015), pp. 10–14; Bayeh (2015), p. 27.

  3. 3.

    UNCTAD, The Way to the Ocean, Transport and Trade Facilitation Series 4, UN Secretariat, 1 (UN Statistics Division, 2017); For list of landlocked developing countries see UN Website, http://unstats.un.org/unsd/methods/m49/m49regin.htm.

  4. 4.

    See generally UN, World Economic Situation and Prospects (2016).

  5. 5.

    See UN Website (note 3); see also Uprety (2003), p. 202.

  6. 6.

    See generally UNESCAP (note 1); UNCTAD (note 3); see also Tuek (2015), p. 339; Faye et al. (2004), p. 31; Depoorter and Parisi (2003).

  7. 7.

    See UNCTAD (note 3); see also Francois Arvis (2005), pp. 243–264.

  8. 8.

    Gabriel et al. (2010), pp. 39–73.

  9. 9.

    See Faye (2004), p. 43. Similarly, during 2016 and 2017, Pakistan closed the Wagah land port several times, each time for several weeks, to Afghan exports. Afghan exports, which were mainly fresh fruits including grapes perished and Afghan traders claimed high financial losses. DAWN, Poor Kabul-Islamabad Ties affect Afghan Fruit Exports (January 2017), https://www.dawn.com/news/1305951; see also Arwin Rahi, A Counterproductive Afghan-Pakistan Border Closure, The Diplomat Magazine (March 20, 2017), https://thediplomat.com/2017/03/a-counterproductive-afghan-pak-border-closure/.

  10. 10.

    Jaridai’i Rasmi Jumhuri’i Isla’mai Afghanistan 57 [The Official Gazette of the Islamic Republic of Afghanistan], Mo’afiqatna’mi Tejarati Transit Bain Jumhuri’i Isla’mai Afghanistan wa Jumhuri’i Isla’mai Pakistan [Afghanistan Pakistan Transit Trade Agreement] (ATTA), 11 Hoot 1343 (Mar. 2, 1965).

  11. 11.

    See GA, Conference on the Law of the Sea, 29th Sess., 11th mtg, UN Doc. A/Conf. 13/43 (1958).

  12. 12.

    Sarup (1972), p. 294; see also Kumar Rana (2010).

  13. 13.

    See generally GATT; UNCLOS; Statute on Freedom of Transit adopted by the Convention of Barcelona (Barcelona Statute), Apr. 20, 1921, 7 L.N.T.S. I (Entry into force: October 1922); Convention on Transit Trade of Landlocked States (New York Convention), done at New York, July 8, 1965, 597 U.N.T.S. 42 (Entry into force: June 8, 1967); Customs Convention on the International Transport of Goods under Cover of TIR Carnets (TIR Convention), Nov. 14, 1975, 16 U.N.T.C. 16510 (Entry into force: Mar. 20, 1978).

  14. 14.

    Sultana (2011), pp. 21–28.

  15. 15.

    UN, Treaty Collection (UNTC), https://treaties.un.org/pages/ViewDetailsIII.aspx?src=TREATY&mtdsg_no=XXI6&chapter=21&Temp=mtdsg3&clangn.

  16. 16.

    See International Road Transport Union (IRU), IRU 2014, Annual Report 73 (January 2014), https://www.iru.org/sites/default/files/2016-01/en-ar-2014-web.pdf; see also UNTC, https://treaties.un.org/PAGES/ViewDetails.aspx?src=TREATY&mtdsg_no=XI-A16&chapter=11&clang=_en.

  17. 17.

    WTO, Protocol on the Accession of the Islamic Republic of Afghanistan to the Marrakesh Agreement Establishing the WTO (Afghanistan’s Accession Protocol), Dec. 17, 2015, WLI/100 (Nairobi. Dec. 17, 2015).

  18. 18.

    The Official Gazette of the Islamic Republic of Afghanistan 1063, Mo’afiqatna’mi Tejarati Transit Bain Jumhuri’i Isla’mai Afghanistan wa Jumhuri’i Isla’mai Pakistan (Afghanistan Pakistan Transit Trade Agreement) (APTTA), 10 Aqrab 1390 (Nov. 1, 2011); The Official Gazette of the Islamic Republic of Afghanistan 1250, Mo’afiqatna’mi Ejadi Dahliz Haml wa Naql wa Transit Bain-ul-milali Miani Jumhuri’i Isla’mai Afghanistan, Jumhuri’i Hind, wa Jumhuri’i Isla’mai Iran (International Transport and Transit Agreement between the Islamic Repulblic of Afghanistan, Republic India and Islamic Repoublic of Iran) (Chabahar Agreement), 25 Hoot 1395 (Mar. 5, 2017).

  19. 19.

    Central Asian Regional Economic Cooperation (CAREC), Kyrgyz Republic, Tajikistan Welcome Afghanistan into Cross-Border Transport Accord, Press Release (Oct. 18, 2011), https://www.carecprogram.org/?feature=afghanistan-cbta-accession. CBTA was signed and ratified between Kyrgyz Republic and Tajikistan in 2010 in Dushanbe. See CAREC, First Cross-Border Transport Agreement Signed under CAREC, Press Release (Dec. 6, 2010), https://www.carecprogram.org/?feature=first-cbta-signed-under-carec-december-2010; ECO Transit and Transport Framework Agreement, (Almaty, 1998). (Ratified. 2006), http://www.eco.int/parameters/eco/modules/cdk/upload/content/general_content/3758/1515303370972om85qvdt 8gggqsf9ed3ss6q4e5.pdf.

  20. 20.

    Transit and Transport Cooperation Agreement (Lapis Lazuli Route Agreement), Ashgabat. Nov. 28, 2017, Türkiye Büyük Millet Meclisi Baskanligina (Grand National Assembly of Turkey), No. 2/1195 (Oct. 30, 2018), available at: https://www2.tbmm.gov.tr/d27/2/2-1195.pdf.

  21. 21.

    An example is the 2016 clash between Afghanistan and Pakistan on the Wagah port closing. See Khairullah Rasuli, Daad wa Sita dba Hind Shamil APTTA nist (Trading with India is not within APTTA) Voice of America (Sept. 21, 2016), http://www.darivoa.com/a/pakistan-rejected-afghanistan-demand-for-opening-wagahto-afghan-trade/3502129.html; see also Afghanistan Chamber of Commerce and Industries (ACCI), Call for APTTA Cancellation, TOLO News (Mar. 6, 2016) , https://www.youtube.com/watch?v=JSYpvAM3Npc.

  22. 22.

    Hussain and Elahi (2015).

  23. 23.

    Art. 3 APTTA.

  24. 24.

    Ibid., Art. 29.

  25. 25.

    Telephone Interview with Mohammad Rahim Momand, Former Director General, General Directorate of International Trade, Ministry of Industry and Commerce of Afghanistan (MoIC) (Nov.15, 2015).

  26. 26.

    Pajwak News, Kandahar’s Grapes Fall; Alternative Route Sought (Oct. 24, 2016), https://www.pajhwok.com/en/2016/10/24/kandahar%E2%80%99s-grape-exports-fall-alternative-route-sought.

  27. 27.

    Wasdam, Wagha Border Open for Afghans: Pakistan’s Foreign Affairs Ministry (Sept.11, 2016), https://wadsam.com/afghan-business-news/wagah-border-open-afghans-pakistans-foreign-affairs-ministry-232/.

  28. 28.

    Pakistan Afghanistan Joint Chamber of Commerce and Industries (PAJCCI), Pak Afghan Trade (2018), 2; see also Geo TV, Closure of Pak-Afghan Border Building into Humanitarian Crisis (May 4, 2017), https://www.geo.tv/latest/133250-Closure-of-Pak-Afghan-border-building-into-humanitarian-crisis-says-Imran.

  29. 29.

    In-person Interview with Sayed Yahya Akhlaqi, Director, Directorate of Transit, MoIC (Kabul, Apr. 18, 2018).

  30. 30.

    World Bank Group (WBG), Pakistan@100 Regional Connectivity, Policy Note 22 (May 2019).

  31. 31.

    Jackson et al. (2000), pp. 179–180.

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  1. University of Passau, Passau, Germany

    Suhailah Akbari

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Akbari, S. (2021). Legal Challenges Facing Afghanistan’s Transit Trade with Pakistan. In: The WTO Transit Regime for Landlocked Countries and its Impacts on Members’ Regional Transit Agreements. European Yearbook of International Economic Law(), vol 17. Springer, Cham. https://doi.org/10.1007/978-3-030-73464-0_1

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