TRADE RELATIONS WITHAFGHANISTAN:

POTENTIAL AND OPPORTUNITIES

TashkentOctober

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 andIndustry 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 requirepermission:

– 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 goodsin $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 goodsin $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 yourattention!

Questions?