Kazakhstan has proposed an alternative route for the supply of agricultural products to Afghanistan, which would use the trade route through Turkmenistan. This would reduce the cost of logistics and, accordingly, the final price of products for the buyer, Turanews.kz reports.
The proposal was discussed on August 2 in Astana at a meeting between the Deputy Prime Minister – Minister of Trade and Integration of the Republic of Kazakhstan Serik Zhumangarin and the Minister of Trade and Industry of Afghanistan Alkhaj Nuriddin Azizi.
Currently, there is a 20% discount to the railway tariff for the transportation of grain and flour to Afghanistan through the Galaba station through the territory of Uzbekistan. However, even taking into account the discount, the tariffs for the transportation of Kazakh grain cargo through the territory of Uzbekistan in the direction of Afghanistan and Tajikistan are quite high.
The Kazakh side has proposed to provide additional discounts in the amount of 10% to the already existing 30% for the transit tariff through the territory of Turkmenistan through the Turkmen-Afghan transition Turgundi. This would make the route through Turkmenistan more competitive and could help to increase the volume of trade between Kazakhstan and Afghanistan.
The Kazakh side also requested the Afghan side to consider reducing tariffs for Kazakh bulk cargo to $200. This would further reduce the cost of logistics and make it even more attractive for Kazakh exporters to use the route through Turkmenistan.
The meeting also discussed the possibility of opening a trade office in Kazakhstan by the Afghan side. This would help to facilitate trade between the two countries and could help to increase the volume of trade to the $3 billion target that was set during the April visit to Kabul.
The two sides expressed their satisfaction with the current state of cooperation between Kazakhstan and Afghanistan and agreed to continue working together to further strengthen ties.
