The Ashgabat Agreement Explained: What You Need to Know
The Ashgabat Agreement, also known as the Central Asia–South Asia Connectivity Agreement, is a trade and transit agreement between five countries in the region. The agreement is named after Ashgabat, the capital city of Turkmenistan, where it was signed in 2018. The countries that are part of the agreement are Turkmenistan, Uzbekistan, Kazakhstan, Pakistan, and Iran.
The purpose of the Ashgabat Agreement is to promote trade and economic cooperation between the countries involved by providing a transit corridor for goods and services between Central Asia and South Asia. The agreement aims to enhance connectivity and reduce trade costs by ensuring efficient and secure transit of goods across the region. The transit corridor will include road, rail, and sea routes, as well as the possibility of using air routes.
The Ashgabat Agreement will also help boost economic growth and development in the region by creating new trade opportunities and improving the investment climate. It is expected to increase the volume of trade between the participating countries and create a more integrated market for goods and services in the region.
The agreement is particularly important for Afghanistan, which is a landlocked country and currently heavily reliant on Pakistan for trade and transit. The Ashgabat Agreement will provide Afghanistan with additional transit routes and help diversify its trade options.
The Ashgabat Agreement is also part of China`s Belt and Road Initiative (BRI), which is a large-scale project aimed at improving connectivity and trade between Asia, Europe, and Africa. China has been actively investing in infrastructure projects in the region, including the construction of roads, railways, and ports. The Ashgabat Agreement is expected to complement these investments and further enhance connectivity in the region.
In conclusion, the Ashgabat Agreement is a significant development in the region`s economic and political landscape. It provides a crucial transit corridor for goods and services between Central Asia and South Asia, which is expected to boost trade and economic growth in the region. The agreement is also a key component of China`s BRI and is likely to further enhance connectivity in the region. The success of the Ashgabat Agreement will depend on the commitment of the participating countries to implement its provisions and ensure the efficient and secure transit of goods across the region.