AFGHANISTAN February 2008 Afghanistan due to be inducted into regional trade group, SAFTA 

Afghanistan is expected to become the eighth member of the South Asian Free Trade Area (SAFTA) in February, a potential economic boost for the war-ravaged country. As a member of SAFTA, Afghanistan will receive the benefit of zero import duty by India on 4536 tariff lines.

An agreement on SAFTA was reached at the 12th South Asian Association for Regional Cooperation (SAARC) summit at Islamabad on 6 Jan 2004. It aims at creating a free trade zone among the seven SAARC countries -- India, Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan and the Maldives.

India’s economic relation with Afghanistan would be improved with this arrangement. India and Afghanistan also have a Preferential Trade Agreement (PTA) that facilities 38 Afghan products receiving preferential treatment in India against eight Indian items. India had invested US $750 million in the reconstruction of the Afghan economy during the last five years, making India the fifth largest development partner of Afghanistan.

India-Afghan trade stood at 216 million US dollar in 2006-07 and the two sides hope to take it to 1 billion US dollars in the next five years. Dec/07

ARTICLE SUPPLIED BY NEWSAHEAD CORRESPONDENT C.BALAJI, WHO IS AVAILABLE FOR FREELANCE ASSIGNMENTS IN INDIA AND THE REGION. email: mohan balaji

RELATED READING:

Government may cut duties on Afghanistan's SAFTA duties (Business Standard 11 Dec 2007)
http://www.business-standard.com/common/storypage_c_online.php?leftnm=11&bKeyFlag=IN&autono=30349