Pakistan,Uzbekistan sign significant agreement on Transit Trade

July 15, 2021 (MLN): Pakistan and Uzbekistan have signed an agreement on transit trade (AUPTT) during the two-day (July 15-16) visit of Prime Minister Imran Khan to Tashkent to attend the Pakistan-Uzbekistan “Silk Route Reconnect” Business Forum.

This agreement will give access of Pakistani seaports to Uzbekistan and offer access to all the five Central Asian States for Pakistani exports.

This would help in enhancing trade and regional connectivity and open doors for increasing Pakistan’s exports to Uzbekistan while harnessing the potential of a $90 billion market in Central Asia.

According to the Salient features of the proposed agreement shared by GoP via its official Twitter handle, transit trade between Uzbekistan and Pakistan must take place along pre-determined routes and only utilizing specified ports and border crossings.

Uzbekistan and Pakistan are obligated to ensure that suitable infrastructure and personnel are available at border crossings and would provide separate spaces for off-dock terminals and warehousing, at entry/exit points and other customs notified places, on a reciprocal basis.

While each country remains responsible for licensing transport operators (eg trucking firms) registered in their territory, Uzbekistan and Pakistan would issue Road Transport Permits on the basis of which, transport operators would be able to transport goods through the other country’s territory. That is, Uzbek trucks would carry goods via Pakistan to seaports rather than having to re-load them onto Pakistani trucks at the Afghanistan-Pakistan border and vice versa.

The Uzbek government would recognize Pakistani driver’s licenses and vehicle registration documents, and vice versa.

The Uzbek and Pakistani governments would expedite and simplify the process for awarding multiple-entry visas to truck drivers from one another’s countries.

With the exception of selected perishable items, goods transiting through Uzbekistan and Pakistan would be stored in sealed containers meeting international specifications.

The Uzbekistan-Pakistan Transit Trade Coordination Committee (UPTTCC), which will be established under the AUPTT, would be responsible for monitoring and facilitating the implementation of the agreement. There will be a grievances redressal mechanism and dispute settlement mechanism and arbitration in the agreement to settle disputes between the two countries.

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