Published October 1, 2018 | Version v1
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Afghanistan's Dependence on Pakistan: Trade, Transit and the Cost of Being Landlocked

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The transit trade problems of Afghanistan are typical to any other landlocked country. As a landlocked country, Afghanistan has mainly relied on Pakistan for its international trade. However, the transit trade of Afghanistan has remained unstable akin to escalated political relations between the two countries. Given economic importance of access to sea, the landlocked countries continued to raise their voice at the United Nations. Afghanistan was at the forefront along with Bolivia, and Czechoslovakia to find solution to challenges faced by landlocked states due to their disadvantaged geographic position. The struggles at the UN resulted in international laws and conventions which ensured that the landlocked states have free access to sea and their disadvantaged geographic position is not exploited by neighboring counties. The international laws and conventions laid legal framework for transit trade agreements between Afghanistan and Pakistan. However, despite the international laws, conventions and bilateral agreements, the transit trade of Afghanistan through Pakistan continues to face challenges till date. These challenges have had implications for both transit trade and trade between the two countries.

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