| Date: |
21-11-2014 |
| Subject: |
India may sign Motor Vehicles Agreement at Saarc summit |
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NEW DELHI: A crucial agreement that will allow the free movement of commercial vehicles — trucks and buses mainly — across the South Asian Association for Regional Cooperation (Saarc) is likely to be signed at the summit of the eight-member grouping in Kathmandu next week, possibly paving the way for Indian carriers to drive all the way to Afghanistan through Pakistan for the first time.
On Thursday, the Cabinet approved signing and ratifying the Saarc Motor Vehicles Agreement at the Kathmandu summit, to be held on November 26-27. The motor vehicles agreement among Saarc countries has been in the works for several years.
The motor vehicles agreement could not be finalised earlier because Pakistan did not want to allow access to Indian vehicles due to its apprehensions over the type of goods that would be supplied to the landlocked country from India. Pakistan has reservations about a large Indian presence in Afghanistan and considers this detrimental to its interests and its so-called doctrine of strategic depth. The absence of such a pact has hampered India's trade with Afghanistan.
But Indian officials said the Pakistani authorities have now diluted their opposition as the country itself is eyeing intra-regional trade and the beneficial impact this could have on its economy. Pakistan had recently removed some items from its sensitive list for intra-regional trade, pruning it from 1,169 to 936 for all Saarc countries.
India is the sixth-biggest donor to Afghanistan's reconstruction since the fall of the Taliban and has been involved in various infrastructure development and capacity-building projects as part of a $2-billion aid programme. Afghanistan is home to major natural resource deposits including iron ore and natural gas, which India hasn't been able to harness because of logistical and other reasons. The country is also the gateway to Central Asia and beyond, making it a country of major strategic interest to Delhi.
To begin with, the agreement will be operationalised with the launch of three bus services between India and Nepal following the summit, officials said. Services on routes between other countries in the region will be launched in phases, they added. Pakistan Prime Minister Nawaz Sharif is keen on an India-Afghanistan service via Pakistan at the earliest, but officials said it would take some time to get this route going as he is still facing some internal resistance on this issue.
While the agreement would pertain to commercial vehicles and public transport in the early phases, its scope will be expanded to include private vehicles at a later date. "The Saarc Motor Vehicles Agreement will allow movement of cargo, passenger and personal vehicles across member states," said an official, who did not want to be identified. "This along with the Saarc Regional Railways Agreement, also likely to be signed at this summit, will go a long way to boost intra-regional trade, (ensure) easy market access and people-to-people contact." The member countries will decide on traffic volume through mutual negotiations, apart from fees and charges to be levied at entry points. Routes for road connectivity are yet to be finalised.
The country through which the vehicles will move will set these charges, which will have to be paid in the local currency. The authorised officers of the country can inspect and search transiting vehicles, according to the draft of the agreement.
Source : economictimes.indiatimes.com
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