India, Afghan agree to boost trade; lower tariffs on cards

New Delhi: With a view to expanding trade and economic relations, India and Afghanistan today agreed to take steps to simplify customs procedures and gradually lower tariff barriers. A joint statement issued after a meeting between Prime Minister Manmohan Singh and visiting Afghan President Hamid Karzai said, “The sides agree to take effective measures to create a favourable environment to promote trade and investment.” The measures include enhancing investment protection, simplifying customs and other procedures, and promoting the removal of non-tariff barriers and gradually lowering tariff barriers, the statement added. “To achieve a sustained expansion of bilateral trade and economic ties with a long-term perspective, the sides will establish effective mechanisms for interaction between Indian and Afghan entities,” it said. [caption id=“attachment_99508” align=“alignleft” width=“380” caption=“Prime Minister Manmohan Singh and Afghan President Hamid Karzai during a joint press conference at Hyderabad House in New Delhi on Tuesday. Manvender Vashist/PTI”] [/caption] The specific measures agreed upon in this regard include encouraging contacts between regions or provinces in both the countries and jointly exploring the possibilities of regional trading arrangements with third countries. Encouraging cooperation between industry chambers in the two countries is another step envisaged in the statement. To enhance the competitiveness of goods, a mechanism will be established to promote cooperation between quality assurance and standardisation institutions, it said. “Recognising that regional economic cooperation is vital to the future economic prosperity of individual nations, the sides (India and Afghanistan) agree to cooperate, both bilaterally and through regional organisations in promoting regional economic cooperation,” the statement said. The cooperation envisages assisting Afghanistan emerge as a trade, transportation and energy hub connecting Central and South Asia and enabling free and more unfettered transport and transit linkages, it said. It also aims to promote development of regional infrastructure projects and help facilitate the integration of the Afghan economy within the South Asian and global economies by opening markets for Afghan and Indian products for mutual benefit. In the interest of Afghanistan’s sustainable development, and furthering economic interdependence between the two countries, the statement said, the sides are committed to deepening and diversifying cooperation in sectors such as agriculture, rural development, mining, industry, energy, information technology, communications, transport, including civil aviation. PTI