Implementation Hurdles of the Afghanistan-Pakistan Transit Trade Agreement – 2010

Abstract

This master thesis studies the transit trade impediments between Afghanistan and Pakistan. The government of Afghanistan and the Islamic Republic of Pakistan signed a transit trade agreement which was inactive for forty-five years. The outdated agreement was not in a position to solve the needs of Afghan citizens. In 2010 both countries signed a memorandum of understanding for a new transit trade agreement, an agreement broad in scope but difficult in implementation. The two countries opened all dry-ports plus seaports (in Pakistan) to each other, aiming to expedite transit trade, remove transit barriers, and improve welfare and living standards of their inhabitants. Furthermore, this agreement might be the first step for regional integration in which Afghanistan eases transit trade as a land bridge and links South Asia, Central Asia, Northeast Asia and the Middle East. After this agreement gets momentum, subsequently, other regional mega economic projects may start which will enrich the economy of the family of the region. This study conducts a qualitative method research to study “Implementation Hurdles of Afghanistan-Pakistan Transit Trade Agreement – 2010” and elaborate commitment of the two countries, reasons behind inapplicability of the agreement, and impact of non-implementation on Afghanistan.