US senators introduce bill for duty-free economic zones along Pak-Afghan border

[313ghazi]

Sounds like illegalizing smuggling but why US is deciding on behalf of Pakistan?

I made the same mistake when I read it. I thought, why are Americans telling us to have a free trade zone? Then I read it again and actually it means something else.

What the USA is proposing is that goods made in the border areas of Afghanistan and Pakistan could be exported to the USA duty free.

For example if your business is setup within x km of the border if you export to the US it will be duty free.

They will provide this concession for a limited time on limited products.

What they hope to do is create an environment where Pakistan and Afghanistan invest in the local economy near thier borders, creating jobs, reducing smuggling and people/drugs/weapons trafficking.

I think they've made a very wise choice. As long as people are poor it is easy to hire them to fight wars. Midfle class people don't join wars.

 

[Cookie Monster]

Yes but this is a hypoallergenic peanut. It is unlikely to cause any nasty side effects like circular debt.

Development is always good...it steers a lot of ppl away from a life of crime when they are given a choice to be able to lead a normal life. So any opportunities which build ppl up, give them jobs/skills, allow their children or potentially themselves to be educated...is always welcome...no matter from which country.

I only hope that it reaches the average ppl it is meant for...instead of being squandered...filling the pockets of a few who are in positions of power.

 

[khansaheeb]

This is more than creating an economic dependency like in a trade. It's an American Act. So the Americans will have a say to 'run' and 'audit' the compliances of the Zone set up by the Americans. Of course American agencies and NGOs will step in the 'certify' the Zone's compliances. Thus the American-influenced or -controlled policies on the Zone's economic and political activities. The Zone will become wealthier as a result of Americans pumping $$ in. But the Zone will be slowly detached from the Pakistan government.

This is very different than China's setting up Shenzhen back in the 1980's.

That is one likely scenario but the whole world does trade and it doesn't end this badly. Pak gov no doubt will monitor what goes on. Worse the US can do is terminate the concessions then it would be up to Afghan and Pak gov to deal with the impacts, this is business, nasty as it may be. If China or anyone else can come up with a better solution then it would be interesting to hear it.

One solution is extend CPEC to CPAEC-China Afghanistan Pakistan economic corridor, it will be bring tremendous peace and prosperity to the whole region.

 

[MajesticPug]

That is one likely scenario but the whole world does trade and it doesn't end this badly. Pak gov no doubt will monitor what goes on. Worse the US can do is terminate the concessions then it would be up to Afghan and Pak gov to deal with the impacts, this is business, nasty as it may be. If China or anyone else can come up with a better solution then it would be interesting to hear it.

One solution is extend CPEC to CPAEC-China Afghanistan Pakistan economic corridor, it will be bring tremendous peace and prosperity to the whole region.

The proper and better way to model China's setting up Shenzhen as a special economic zone. The central government has control over the region and sets up policies that promote infrastructure buildings, priority uses of electricity, special tax advantages to foreign investments that bring jobs to the regions, allow foreign development companies to build toll bridges/roads that eventually turn over to local government control. China's Guangdong province had many of these projects set up in the 1980's and 90's as incentives to build infrastructures.

Allowing a foreign power like the US controls the policies in a Zone set up by American laws is a recipe for separating your own country or turn your country into riots. You can even read that 'dbc' so-called US think tank analyst's admission 'US law, US controlled' certainty.

 

[ziaulislam]

It wont pass

Previous bills failed

But if it does pass can we take benefit of it?

There is no infrastuture there

Pakistan should lobby a nationwide preference

 

[Kabira]

It wont pass

Previous bills failed

But if it does pass can we take benefit of it?

There is no infrastuture there

Pakistan should lobby a nationwide preference

Even if it pass then what? They demand more then Europe on GSP plus so good luck.

 

[dbc]

I made the same mistake when I read it. I thought, why are Americans telling us to have a free trade zone? Then I read it again and actually it means something else.

What the USA is proposing is that goods made in the border areas of Afghanistan and Pakistan could be exported to the USA duty free.

For example if your business is setup within x km of the border if you export to the US it will be duty free.

They will provide this concession for a limited time on limited products.

What they hope to do is create an environment where Pakistan and Afghanistan invest in the local economy near thier borders, creating jobs, reducing smuggling and people/drugs/weapons trafficking.

I think they've made a very wise choice. As long as people are poor it is easy to hire them to fight wars. Midfle class people don't join wars.

Yes finally someone who gets it.. Again Pakistan can choose to leverage the trade concessions or ignore it.
At the moment, Pakistan has an advantage that will only last as long as Iran is sanctioned. One day sanctions on Iran will be lifted and Afghanistan will have an alternate route to US and European markets.

 

[Cookie Monster]

Yes finally someone who gets it.. Again Pakistan can choose to leverage the trade concessions or ignore it.
At the moment, Pakistan has an advantage that will only last as long as Iran is sanctioned. One day sanctions on Iran will be lifted and Afghanistan will have an alternate route to US and European markets.

IMO Pak should go the singapore route...instead of trying to pick sides and fight wars...use the CPEC's infrastructure development and SEZ...plus this US offer...set up industry...provide incentives to businesses to set up shop...cut red tape...
...and become a hub...from where massive trade passes through.

 

[Vapour]

Reasonable post. However, America is primarily a proponent of military hegemony and dominance. It has little interest in regional development unless it is on America's terms.

Americans will support despot regimes or those regimes that are in their favour at the cost of local aspirations.

In a nut shell... America is all about "what can you do for me (Rome)"... Instead of, "what can we do together".

Agreed and who would know this more intimately than Pakistan, who has been been on the short end of the stick, perhaps the most out of all in the last few decades?

This is exactly why Pakistan should and is rightly attempting to deviate its relations with the US, from that of an ebbing and flowing military/intelligence convergence and divergence of interests to a more sustainable, arm's length, economic trade-based set up.

May seem like a speculative shot, but can definitely pay dividends if it proves to be successful.

 

[FuturePAF]

It wont pass

Previous bills failed

But if it does pass can we take benefit of it?

There is no infrastuture there

Pakistan should lobby a nationwide preference

Especially considering Afghan refugees live all over Pakistan.

 

[Village life]

I hope Pak establishment and deep state won't get tantalized by these peanuts as they did in afghan war against Russia this time the demand should be kashmir and billions of dollars industrial investment to ditch china , oh please don't be happy on peanuts, I wonder why we are always ready to fight and have martyrdom from Indian bullet but we are afraid of the martyrdom from the European and american bullet and conspiracies, we should learn from taliban and iran , once we are free of fear of death no one can dictate us,

 

[Vanamali]

Not related.. but as a comparison. China is king.

Not king...
King Cobra

 

[SD 10]

US senators introduce bill for duty-free economic zones along Pak-Afghan border

By News Desk
WASHINGTON/ LAHORE: US senators have introduced a bipartisan bill to promote and generate economic benefits for Pakistan and Afghanistan by establishing Reconstruction Opportunity Zones along Afghanistan and Pakistan border.

The bill is called the ‘Pakistan-Afghanistan Economic Development Act’. The legislation proposes the set up of a reconstruction opportunity zones along Pak-Afghan border areas. “The bill would establish Reconstruction Opportunity Zones (ROZs) in Afghanistan and Pakistan’s border regions to allow certain products from these areas to enter the US duty-free,” a statement read.

The bipartisan bill was introduced by Democrat Senators Van Hollen, Maria Cantwell and Republican Senator Todd Young. The outlined objectives of the say that fostering trade with the Pakistan-Afghanistan border region will help bolster economic development and improve the livelihoods of local populations.

The effort will further US diplomatic objectives in the region by contributing to political stability and addressing the root causes of violent extremism, as well as expanding trade with Pakistan will strengthen ties with a key strategic partner and enhance economic development in a region important to US interests.

Pakistani-born American Democrat leader and well-known businessman Tahir Javed says this legislation allows textile goods to be sent to US without duty.”If [this] bill becomes part of law after approval, it will be of great benefit to Pakistan for 10 years,” he said, adding that Pakistan’s exports to US could increase tenfold.

Javed expressed the belief that the legislation will bring economic benefits to Afghanistan and Pakistan.
The democrat leader said the bill has been introduced to promote stability in the region and can solve many of Pakistan’s problems.

The Democrat leader said this bill could mean relations between Pakistan and US may find a new direction Efforts will be made to get 60 votes in making the economic bill a law, he said.

US senators introduce bill for duty-free economic zones along Pak-Afghan border

By News DeskWASHINGTON/ LAHORE: US senators have introduced a bipartisan bill to promote and generate economic benefits for Pakistan and Afghanistan by establishing Reconstruction Opportunity Zones...

www.thenews.com.pk

nothing going to happen. calm down.

 

[Mk-313]

Peanuts compared to what China is about to do.

dude Your economy was about to collapse until IMF gave you $6 billion.

US has poured close to $100 billion of free money in your country ever since ur independence
Chinese have only given u loans on the ports that they are gona use and sent their workers whose salary you pay from those loans...

 

[Kabira]

I hope Pak establishment and deep state won't get tantalized by these peanuts as they did in afghan war against Russia this time the demand should be kashmir and billions of dollars industrial investment to ditch china , oh please don't be happy on peanuts, I wonder why we are always ready to fight and have martyrdom from Indian bullet but we are afraid of the martyrdom from the European and american bullet and conspiracies, we should learn from taliban and iran , once we are free of fear of death no one can dictate us,

Honestly economic zone in border areas for USA is good. As long as it remains economic zone and not support base for PTM/TTP terrorist types.