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TRADE RELATIONS WITH
AFGHANISTAN:
POTENTIAL AND OPPORTUNITIES
Tashkent
October
2013
Trade partners of Afghanistan
• Pakistan, Iran: proximity of borders, kin languages
• Russia: high quality, volume of oil products supplies
• China: low cost of goods
• Turkmenistan: volume of oil products supplies
• Uzbekistan: good quality, transport corridor
– The trade turnover increases every year
– Great potential and opportunities for expansion
• Kazakhstan: volume of flour and wheat supplies
Potential and opportunities of Afghanistan market
• Population: 31 millions
• Production: absent in large scale
• Production cost: high
• Experience in trade relations: positive
• Cost of transportation: low
• Business safety: positive
• North region infrastructure: established
• Economic and commercial center: Mazar-i-Sharif
Import rules and regulations in Afghanistan
• Import conditions are favorable enough
• No seasonal restrictions, quotas or other non-tariff
import barriers
• Ban only in respect to several goods
• Consult about the goods due to be authorized
• State bodies publish the list of authorized goods
• Information can be found at the websites of the
Chamber of Commerce and the Ministry of Trade and
Industry of Afghanistan
Imported goods and products
Goods under the total ban:
– Alcoholic beverages
– Weapons and ammunition
– Chemical fertilizers, ammonium
nitrate
– Cotton seeds
– Pigs in a living form, all pork
products
– Drugs, narcotic substances
– Plastic bags
Goods are authorized, but require
permission:
– Agro chemicals and pesticides
– Some types of food products
– Pharmaceuticals, medical
products, pharmaceutical tools
– Seed
– Veterinary equipment and
medical supplies
Import from Uzbekistan to Afghanistan
2010-2011 2011-2012
Name of the goods
in $U.S.
Dollars %
in $U.S.
Dollars %
Energy 364,389,657 33.49% 377,102,664 51.49%
Diesel 265,974,873 24.45% 109,993,686 15.02%
Metal rods 167,560,861 15.40% 103,529,501 14.13%
Petrol 147,161,749 13.53% 82,058,683 11.20%
Legumes 13,718,015 1.26% 16,277,506 2.22%
Liquefied gas 36,057,728 3.31% 13,442,718 1.84%
Wheat and flour 4,830,295 0.44% 5,966,590 0.81%
Fertilizers 6,405,277 0.59% 2,811,977 0.38%
Metal plates 11,990,216 1.10% 2,102,148 0.29%
Other goods 69,837,849 6.42% 19,164,036 2.62%
Total import 1,087,926,520 100% 732,449,509 100%
Import from Kazakhstan to Afghanistan
2010-2011 2011-2012
Name of the goods
in $U.S.
Dollars %
in $U.S.
Dollars %
Wheat and flour 181,912,649 87.47% 149,481,241 44.85%
Energy 0 0.00% 77,948,224 23.39%
Petrol 0 0.00% 26,938,339 8.08%
Diesel 0 0.00% 20,937,567 6.28%
Liquefied gas 1,187,732 0.57% 14,610,634 4.38%
Food products 3,880,431 1.87% 14,502,937 4.35%
Metal plates 7,093,358 3.41% 6,024,252 1.81%
Other goods 13,908,382 6.69% 22,865,835 6.86%
Total import 207,982,552 100% 333,309,029 100%
Other goods from Uzbekistan and Kazakhstan
• Food products: baby food, canned food, vegetable oil (sunflower,
cotton)
• Beverages: juices, mineral water and other soft drinks
• Medical supplies: pharmaceuticals, medical equipment
• Mineral fertilizers
• Tobacco products
• Construction materials: paint, plastic goods, plastic pipes
• Automobiles and spare parts
• Textile products
• Electric appliances
• Cloth and shoes
• Toilette paper
Current obstacles
• Language barrier
• Information on the goods in local languages
• Promotion of goods
• Cultural and religious traditions
• No information about the state of the market
• Difficulties in obtaining visa
• No due attention on the part of state bodies
Recommendations
• Assistance in obtaining visa
• Exhibition of goods and products
• Opening of trade house or exhibition room
• Intergovernmental Commission on trade relations
• Arrangement of regular meetings (B2B)
• Advertising campaign of produced goods
• Close contacts with the Chamber of Commerce
Thank you for your
attention!
Questions?

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Economic Cooperation with Afghanistan - Timur Nuratdinov, KZ

  • 1. TRADE RELATIONS WITH AFGHANISTAN: POTENTIAL AND OPPORTUNITIES Tashkent October 2013
  • 2. Trade partners of Afghanistan • Pakistan, Iran: proximity of borders, kin languages • Russia: high quality, volume of oil products supplies • China: low cost of goods • Turkmenistan: volume of oil products supplies • Uzbekistan: good quality, transport corridor – The trade turnover increases every year – Great potential and opportunities for expansion • Kazakhstan: volume of flour and wheat supplies
  • 3. Potential and opportunities of Afghanistan market • Population: 31 millions • Production: absent in large scale • Production cost: high • Experience in trade relations: positive • Cost of transportation: low • Business safety: positive • North region infrastructure: established • Economic and commercial center: Mazar-i-Sharif
  • 4. Import rules and regulations in Afghanistan • Import conditions are favorable enough • No seasonal restrictions, quotas or other non-tariff import barriers • Ban only in respect to several goods • Consult about the goods due to be authorized • State bodies publish the list of authorized goods • Information can be found at the websites of the Chamber of Commerce and the Ministry of Trade and Industry of Afghanistan
  • 5. Imported goods and products Goods under the total ban: – Alcoholic beverages – Weapons and ammunition – Chemical fertilizers, ammonium nitrate – Cotton seeds – Pigs in a living form, all pork products – Drugs, narcotic substances – Plastic bags Goods are authorized, but require permission: – Agro chemicals and pesticides – Some types of food products – Pharmaceuticals, medical products, pharmaceutical tools – Seed – Veterinary equipment and medical supplies
  • 6. Import from Uzbekistan to Afghanistan 2010-2011 2011-2012 Name of the goods in $U.S. Dollars % in $U.S. Dollars % Energy 364,389,657 33.49% 377,102,664 51.49% Diesel 265,974,873 24.45% 109,993,686 15.02% Metal rods 167,560,861 15.40% 103,529,501 14.13% Petrol 147,161,749 13.53% 82,058,683 11.20% Legumes 13,718,015 1.26% 16,277,506 2.22% Liquefied gas 36,057,728 3.31% 13,442,718 1.84% Wheat and flour 4,830,295 0.44% 5,966,590 0.81% Fertilizers 6,405,277 0.59% 2,811,977 0.38% Metal plates 11,990,216 1.10% 2,102,148 0.29% Other goods 69,837,849 6.42% 19,164,036 2.62% Total import 1,087,926,520 100% 732,449,509 100%
  • 7. Import from Kazakhstan to Afghanistan 2010-2011 2011-2012 Name of the goods in $U.S. Dollars % in $U.S. Dollars % Wheat and flour 181,912,649 87.47% 149,481,241 44.85% Energy 0 0.00% 77,948,224 23.39% Petrol 0 0.00% 26,938,339 8.08% Diesel 0 0.00% 20,937,567 6.28% Liquefied gas 1,187,732 0.57% 14,610,634 4.38% Food products 3,880,431 1.87% 14,502,937 4.35% Metal plates 7,093,358 3.41% 6,024,252 1.81% Other goods 13,908,382 6.69% 22,865,835 6.86% Total import 207,982,552 100% 333,309,029 100%
  • 8. Other goods from Uzbekistan and Kazakhstan • Food products: baby food, canned food, vegetable oil (sunflower, cotton) • Beverages: juices, mineral water and other soft drinks • Medical supplies: pharmaceuticals, medical equipment • Mineral fertilizers • Tobacco products • Construction materials: paint, plastic goods, plastic pipes • Automobiles and spare parts • Textile products • Electric appliances • Cloth and shoes • Toilette paper
  • 9. Current obstacles • Language barrier • Information on the goods in local languages • Promotion of goods • Cultural and religious traditions • No information about the state of the market • Difficulties in obtaining visa • No due attention on the part of state bodies
  • 10. Recommendations • Assistance in obtaining visa • Exhibition of goods and products • Opening of trade house or exhibition room • Intergovernmental Commission on trade relations • Arrangement of regular meetings (B2B) • Advertising campaign of produced goods • Close contacts with the Chamber of Commerce
  • 11. Thank you for your attention! Questions?