U.S. nudges India-Afghanistan trade: 

U.S. nudges India-Afghanistan trade

Context

  • Afghanistan’s Chief Executive, Dr. Abdullah’s arrival will result into intensifying trade links.

What is the purpose of the visit?

  • Dr. Abdullah, accompanied by several other ministers, is here to inaugurate an India-Afghanistan trade fair, sponsored by the United States Agency for International Development.
  • India has been partnering with the Government and people of Afghanistan in their efforts to build a stable, peaceful, prosperous united and pluralistic country.

Who all will be inaugurating the event?

  • The four-day “India-Afghanistan Trade and Investment Show” will be co-inaugurated by Finance Minister Arun Jaitley, Civil Aviation minister Ashok Gajapathi Raju as well U.S. envoys in Delhi — MaryKay Carlson, and Kabul — Hugo Llorens.

What are the expectations?

  • The air cargo agreement for bilateral trade is expected to be signed by India and Afghanistan as well.

What impact does this meet serves?

  • The hope is that apart from growing trade figures, the social sector, especially projects in health and education will receive support from Indian companies.
  • According to the U.S. official, about 240 Afghan private and social sector businesses and about 800 Indian businesses have registered to participate in the fair.

Security threat

  • At about $684 million (2014-15), India-Afghan trade is far lower than its potential for a number of reasons, the chief being the security situation in Afghanistan with civilian deaths peaking in 2016.

What are the changes in the security situation?

  • Afghan officials hopes that Indian investors and traders will be reassured by the announcement of U.S.
  • U.S President Donald Trump’s new policy for Afghanistan which has committed to keeping troops there without a deadline.
  • The new U.S. policy is already effecting a change in the security situation. Because there is a clear message of a long-term commitment based on the condition on the ground, not on timelines.

What are the other obstacle?

  • The other obstacles to trade include Pakistan’s refusal to allow Indian exports to Afghanistan through the road route at Wagah, and delays for goods routed through Karachi port.
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