India-Afghanistan trade and international law

Ranjan, Prabhash (2022) India-Afghanistan trade and international law. Global Trade and Customs Journal, 17 (1). pp. 2-9. ISSN 1569 755X

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The horrific takeover of Afghanistan by the Taliban has been accompanied by the shutting down of the trade route with India. This action has put into serious jeopardy the bilateral trade between the two countries totaling USD 1.5 billion nurtured in the last two decades. The paper argues that despite Taliban’s unconstitutional takeover of the Afghan government and the absence of de jure recognition being conferred on it, international law obligations continue to bind it. In this regard, the paper argues that Taliban’s shutting down of the trade route is tantamount to imposing a trade embargo with India, which breaches several provisions of the three trade agreements that govern India-Afghanistan trade: India-Afghanistan Preferential Trade Agreement (PTA), South Asian Free Trade Area (SAFTA) agreement and the World Trade Organization (WTO) agreement. However, due to the weak dispute settlement mechanism in India-Afghanistan PTA and SAFTA, it will be difficult for India to hold the Taliban regime accountable. An important lesson for India is to reboot the dispute settlement mechanism in SAFTA moving away from a diplomacy-based system to a de-politicized and rule-based dispute settlement order.

Item Type: Article
Keywords: India | Afghanistan | Trade | Taliban | PTA | SAFTA | WTO | GATT
Subjects: Social Sciences and humanities > Business, Management and Accounting > Business and International Management
Social Sciences and humanities > Social Sciences > Law and Legal Studies
JGU School/Centre: Jindal Global Law School
Depositing User: Shilpi Rana
Date Deposited: 30 Jan 2022 10:30
Last Modified: 27 Oct 2023 04:03
Official URL:


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