TTA with Afghanistan may harm Pak economic sovereignty in future

KARACHI - A plausible difference has been found in the transit trade agreements (TTA) between Pakistan and
India with Afghanistan and Nepal which indicates the inefficiency of the Pakistani government to shield its
sovereignty from future threats in economic prospects, The Nation has learnt.
Indian transit trade agreement with Nepal shows that none of such fine details are present in Pakistan transit
trade agreement with Afghanistan, as India prior to signing a transit trade agreement with Nepal insisted on
signing a bilateral trade agreement, which was called “India-Nepal foreign of treaty trade”. Under the agreement
it was restricted that only goods of Nepalese origin were allowed to be moved into India from Nepal for this such
strict conditions were imposed.
The goods must involve a manufacturing process in Nepal that brings about a change in classification, at four
digit level, of the harmonized commodities description and coding system 70% of ex-factory price of the article
produced and final process of manufacturing is performed within the territory of Nepal.
All Nepalese goods entering into India must accompany a mutually agreed certificate of origin duly authenticated
by Nepalese Government, and even this excludes certain items where Indian industry is threatened, fixed quota
had been allocated which MFN status and duty relaxation was not applicable to Nepal.
Although same conditions apply to Indian origin goods entering into Nepal, but being leading industrial state
India has effectively achieved the objectives that Nepal become totally dependent on goods manufactured in
India and any transit trade from a third country should only serve to fulfil any balance requirements.
A second agreement related to transit trade which was called “treaty of transit trade” had been signed
separately under which that in case of any Import from a third country other than India, a compulsory condition
given in the agreement is that import will be allowed against import licenses issued by Government of Nepal and
against letter of credit opened through a commercial bank.
Both the bilateral trade and transit trade agreement then carries an Injury Clause which means significant
damage to the domestic producer’s or like or similar products resulting from substantial increase in imports
under the treaty in situation of which causes substantial losses in terms of earning, production or employment.