Landlocked Afghanistan is under growing pressure from the US to halt imports through Iran. Opinion here is divided.
The US has asked the Afghanistan Chamber of Commerce and Industries
The US has asked the Afghanistan Chamber of Commerce and Industries to refrain from doing business with 24 Iranian companies and banks which are facing sanctions. The list was not disclosed by the Chamber. Transit through the southern port of Bandar Abbas has been discouraged, but officials at the Chamber of Commerce and Industry are of the view that it is not practical.
Mohammad Nasim Rahmani, head of Nasir Rahmani Company, which imports goods from Iran, says: “Ever since the US has requested the Chamber of Commerce and Industries to cut relations with 24 Iranian companies the prices of goods has gone up considerably.”
He adds, “If the situation continues we won’t have any option but to comply with sanctions on Iran.”
He believes imports through Dubai, Turkey, India and China are equally competitive, and “in case of worsening relations with Iran we don’t have any concern. We need to just change our visa (to import through a second country).”
A net importer of goods, particularly oil and foodstuff, Afghanistan is especially vulnerable to instability in any part of the region.
Squeezing the poor
Shirin Agha of Beradaran-e-Etefaq that imports dairy products and beverages from Pakistan expresses his concern regarding the cutting of economic and commercial relations with Iran.
He warns, “Afghanistan should not become a victim of the nuclear rivalry between Iran and the West. Our political leadership must take into consideration the fact that the rights of our people should not be trampled.”
While there may be no food shortage in case trade relations with Iran are snapped, Shirin Agha believes prices will be very high, and beyond the reach of ordinary people. He says, “We import some beverages from Lebanon, there is no problem for the business. But the people are important: whether they have the ability to buy or not.”
As Iran is the closest neighbour with an access to the sea, imports through Iran are cheapest for Afghan consumers.
However, Jalil Ahmad Sherzad of the Jalil Sherzad, does not buy this argument. “It is true that imported goods could be cheaper from Iran but the prices of goods produced in Iran are not any cheaper than goods from other countries.” He believes Turkey, Dubai and China are alternative trading partners for Afghan business.
Enforcing the ban
Led by the US and its western allies sanctions have been imposed on Iran for clandestinely developing nuclear weapons. But Tehran says its nuclear programme is for civilian purposes. UN Security Council Resolution 1929, passed on June 9, 2010, imposed additional international sanctions on Iran’s nuclear programme and military activities. It bans Iran from participating in any activities related to ballistic missiles; it also tightened an arms embargo, travel bans on individuals related to the nuclear programme, and sought to choke funding to Iran’s nuclear programme by freezing the funds and assets of the Iranian Revolutionary Guard and state-owned shipping lines, and recommending states inspect Iranian cargo, prohibit the opening of Iranian banks on their territory and prevent Iranian banks from doing business with them, among a host of crippling restrictions.
Afghanistan’s chief import from Iran is oil. Khan Jan Alokozai, deputy director in the Chamber of Commerce and Industries, told Killid 15 percent of oil and gas are imported through Aryan and Iran Central banks. “If these deals are cut, the damage would be irreparable,” he warns.
Afghanistan’s trade with Iran is the fourth largest after China, Dubai and Iraq.
Caught in between
Gul Ahmad Azimi, a member of parliament (MP) is blunt. “The government should act independently on these issues and the US should not order Afghan business who to deal with and whom to cut off relations with.”
Azimi points out that Afghanistan imports 97 percent of goods from its neighbours. Washington’s insistence that Kabul terminate business relations with Tehran puts the government in a dilemma, he says. “Afghanistan imports Iranian goods valued at roughly 1.5 billion dollars annually. However Iran imports less than 40 million USD. In such a situation the US should find a reasonable way out for Afghanistan. The Afghan people should not be victims of the rivalry between Iran and the US.”
Azimi adds that for Afghanistan pressure from the US on Iran comes at a time when relations with its southeastern neighbour Pakistan is under strain. The regional political situation can get worse, he warns.
Hajji Fazal Rahman, the head of Afghanistan Trade and Importers Association urges the US to separate politics from business. Afghanistan, he says, is a country emerging after three decades of conflict that destroyed all infrastructure. “We are a country reliant on others. If there are problems between two countries trade suffers. The business community and people are the victims.”
He says Afghanistan has to maintain “good relations with our neighboring countries. Countries that support us should try to eliminate problems that can create a rift with neighbours.”
Repeated attempts to speak to officials in the Ministry of Commerce and Industries were ignored.
