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INFO RUCNAFG/AFGHANISTAN COLLECTIVE
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UNCLAS SECTION 01 OF 02 KABUL 003814 
 
SENSITIVE 
SIPDIS 
 
STATE FOR S/SRAP; SCA/FO, SCA/A, EEB/BTA 
STATE PASS TO USTR FOR DELANEY AND DEANGELIS 
 
E.O. 12958: N/A 
TAGS: ETRD ECON EAID PREL PK AF
SUBJECT: AF-PAK TRANSIT TRADE NEGOTIATIONS ROUND FOUR: DARK 
NEGOTIATING DAYS BEFORE ROUND FIVE RESOLUTION? 
 
REF: KABUL 3341 AND PREVIOUS 
 
¶1. (SBU) Summary: Pakistan,s Transit Trade Chief Negotiator 
Shahid Bashir laid down tough markers in his opening 
statements at the fourth round of negotiations on the 
Afghan-Pakistan Transit Trade Agreement (APTTA) that set a 
confrontational tone for the two-day negotiation.  Pakistan 
opened by stating Afghanistan,s chief goal, access to the 
Indian border crossing at Wagah was off the table for 
discussion, and proposed the two countries adopt an interim 
arrangement on unauthorized trade, to include a negative 
list, until the USAID-funded trade study was completed. 
Progress was made in some protocols such as transit and rail, 
but the Pakistan delegation also insisted on revisiting text 
which had been completed in the previous 
round.  The long-delayed round was also marred by a rocket 
attack on the hotel hosting the negotiations, though no one 
from either delegation sustained injury.  While some of the 
Pakistani toughness may be attributed to the delegation 
forcefully defending its commercial interests in front of its 
stakeholder participants and earlier Afghan resistance to the 
unauthorized trade study (reftels), the Afghan side now 
privately doubts Pakistan,s intent to conclude the 
agreement.  Despite this difficult round, we should continue 
to urge both sides to show the necessary flexibility at the 
next round of talks (slated for December 19-21 in Islamabad) 
to conclude the agreement by the end of this year.  End 
Summary. 
 
¶2. (U) Afghan and Pakistani delegations met November 21 and 
22, 2009 in Kabul for the fourth round of negotiations of the 
Afghan-Pakistan Transit Trade Agreement (APTTA). Afghan 
Minister of Commerce and Industry Wahidullah Shahrani 
inaugurated the round by welcoming both delegations and 
reiterating Afghan commitment to complete the APTTA before 
the end of the year.  The round was delayed for months 
pending resolution of the Afghan elections and bilateral 
scheduling conflicts despite frequent lobbying by both 
Embassy Kabul and Embassy Islamabad to find a mutually 
agreeable timeframe.  The opening session was well-covered by 
Afghan print, radio and television media.  The first 
afternoon,s negotiations were marred by a rocket attack on 
the hotel parking lot where delegations were meeting, but 
none of the participants sustained any injuries. 
 
------------------------------------------- 
Pakistan Enters the Round with Fists Flying 
------------------------------------------- 
 
¶3.  (SBU) The Afghan delegation was visibly frustrated by 
Pakistan,s opening gambit in which it declared it would not 
talk about Afghan access to the Wagah border with India -- 
Afghanistan,s bottom line in the negotiations.  In addition, 
the Pakistani delegation tabled a proposal to develop an 
interim measure regarding unauthorized trade between 
Afghanistan and Pakistan which includes a negative list.  The 
October debate and ensuing delay between the Afghan Ministry 
of Foreign Affairs and the Ministry of Commerce and Industry 
(MOCI) over whether Afghanistan would agree to endorse a 
study on unauthorized trade may have led the Pakistani 
delegation to doubt Afghan commitment to solve the problem. 
Moreover, given the study may not be concluded until six 
months after the completion of the agreement, the Pakistan 
team apparently wants to protect its industries and collect 
revenues due in the interim period.  The Pakistani proposal 
suggested the private sector representatives could identify 
those products highly prone to unauthorized trade, i.e. 
smuggling, while Afghanistan believes the status quo should 
be maintained until the unauthorized trade study is 
finalized. 
 
¶4. (SBU) The Afghans responded with a detailed five-year 
graduated process to gain full import and export access 
from/to India via the Wagah border.  Under the Afghan 
proposal, in year one the Afghan trucks with exports would 
cross the Wagah border and be allowed to return with 
Pakistani export goods to Afghanistan.  Additional measures 
would be granted in each year until reaching full export 
access from/to India in year five.  The Pakistanis reiterated 
their position that this is a bilateral issue between 
Pakistan and India and can not be discussed within the APTTA. 
 
-------------------------------- 
One Step Forward, Two Steps Back 
-------------------------------- 
 
 
KABUL 00003814  002 OF 002 
 
 
¶5. (SBU) The sub-groups on Transit Trade Policy, Customs and 
Transport moved forward on their respective protocols and 
expect to conclude those sections at the next round. 
However, in addition to the issues mentioned in paras 3 and 
4, old bilateral thorns were revisited, including how to 
refer to border crossings, since the two countries differ in 
their definition of the border.  The Pakistanis favored 
 Land border Stations, and the Afghans favored  Legal 
Crossing Points., 
 
-- The two sides have agreed on text to establish an 
Afghanistan Pakistan Transit Trade Coordination Authority 
(APTTCA) to monitor and facilitate effecnot re-appointed as Afghaner. 
End Comment. 
Eikenberry