Tuesday, 24 September 2002

AFGHANISTAN SCRAPS CUSTOM TARIFFS

Published in News Digest

By empty (9/24/2002 issue of the CACI Analyst)

Afghanistan is to stop collecting customs tariffs on exports in order to boost trade and help rebuild its shattered economy, the country's finance minister has said. He made the pledge a week ahead of a 60-nation meeting in Washington to co-ordinate aid for Afghanistan and discuss the best use of about $4.5bn of promised donations.
Afghanistan is to stop collecting customs tariffs on exports in order to boost trade and help rebuild its shattered economy, the country's finance minister has said. He made the pledge a week ahead of a 60-nation meeting in Washington to co-ordinate aid for Afghanistan and discuss the best use of about $4.5bn of promised donations. "We reached a conclusion that all goods should for now be exempted from tax and this will go on until trade is boosted and our main aim is to find jobs and food for people," said Ashraf Ghani Ahmadzai. Afghan's main exports are its famous handwoven carpets, fruit, sheepskins and gems, including emeralds and lapis lazuli, a semi-precious blue stone. The country is desperately poor after two decades of foreign invasion and civil war, exacerbated by drought and earthquakes, and lacks the most basic infrastructure. It has been described by the World Bank as "the poorest, most miserable state in the world". Since the US-led battle to dislodge the Taliban government and its al-Qaeda allies in 2001, Afghanistan has been occupied by an international force of about 13,000 troops. Mr Ahmadzai reportedly said the Afghan government has held talks with the United States, European nations and the Arab Gulf states to find ways of increasing Afghanistan's exports. At present, most exports travel to neighbouring Pakistan and to Iran. The World Bank has identified road building as a priority. The US, Japan and Saudi Arabia have promised to build highways linking the three cities of Kabul, Kandahar and Herat. (BBC)
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The Central Asia-Caucasus Analyst is a biweekly publication of the Central Asia-Caucasus Institute & Silk Road Studies Program, a Joint Transatlantic Research and Policy Center affiliated with the American Foreign Policy Council, Washington DC., and the Institute for Security and Development Policy, Stockholm. For 15 years, the Analyst has brought cutting edge analysis of the region geared toward a practitioner audience.

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