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PRESENTED TO:
RADHA MAAM
PRESENTED BY:
NAJEEBUALLAH HEMAT 11327
HEDAYATULLAH NOORI 11292
FARHAD 1135 5
Afghanistan trade policy and
Afghan Saffron
Introduction
 Afghanistan is a landlocked country located in the
center Asia,
 Total area 650000 sq.km
 Total population 30.6 Million
 Natural resource, gas petroleum, coal, cooper,
chromate, talc, barites, sulfur, lead, zinc, iron ore,
salt, precious and semiprecious stones etc.
Afghan culture
 For centuries, Afghanistan has been a mosaic of
people with diverse cultures, religions and
languages. Afghanistan’s ethnically and linguistically
rich and mixed population reflects its location at the
crossroads of Central, South and Southwest Asia.
Communities with separate religions, languages, and
ethnic backgrounds have lived side by side for
generations. Afghanistan still remains a country of
dynamic diversity. The main ethnic groups are
Pashtun, Tajik, Hazara, Uzbek, Turkmen, Aimaq,
Baluch, Nuristani, and Kizilbash. Pashto and Dari
are Afghanistan’s official languages.
Afghanistan Trade policy
 Afghanistan occupies a key strategic location linking
Central Asia with South Asia, providing China and
the Far East with a direct trade route with the Middle
East and Europe. At the moment, Afghanistan also
faces a security threat that has region-wide
implications and that can only be addressed
effectively by region-wide cooperation”
ANDS
 The Afghanistan National Development strategy it
facilitate trade & transaction
ANDS
 To increase and deepen Afghanistan’s participation and
leadership in bilateral and region-wide initiatives
and agreements that facilitate transit, transport, and
investment in the region;
 To promote cross-border initiatives for the equitable
exploitation of shared resources of hydro power;
 Extend regional cooperation on border management to
better align efforts against
CAREC, SAARC & ECO
Central Asian Regional Economic Council
(CAREC)
South Asian Association for Regional
Cooperation (SAARC)
Economic Cooperation Organization (ECO)
signed over 3 dozen agreements, protocols, and
MOUs with other countries and organizations on
trade, commerce, regional cooperation, transit, and
transport.
Customs Department
 Afghanistan Customs Department (ACD) is a key
department dealing with international trade and
transit, therefore, Customs reforms was high on the
agenda of the government it has two objectives
1. providing protection to society and
2. raising revenue to fund government’s operating
expenses and as a means of achieving fiscal
Infrastructure Development
 For improvement of international supply chain
and regional trade promotion. Many regional
Customs offices including customs directorate were
the impact assessment of infrastructure
New Automated Exemption Module
 This module has been developed by UNCTAD this
module allows for web-based it is automated
monitoring process this system aim to eliminated
human interface and disc ration and also reduce the
corruption and decreasing dive ration of customer
revenue
Customs Tariff
 In 2003 Afghanistan had a highly complicated and
different tariff regime with 27 bands rates unreliable
from 0-150% and an average rate of 43%. In 2004
Afghanistan became a member of World Customs
organization (WCO) and a new law in compliance
with international stander had been passed.
 Harmonized system (HS) of classification was
introduced with valuation based on transaction
value, with new tariff schedule featuring six tariff
bands with rats varying from 2.5% to 16% (major
bands were with 2.5 and 5%) with some prohibited
goods. Changing in 2006 leaded to a slightly more
complex classification and an increase in number of
tariff rates .Afghanistan currently has 12 tariff bands.
Bilateral Trade Arrangements
Economic framework
South Asian Association for Regional
Cooperation
Agreement
Introduction To Saffron
 One of the oldest natural pants which have attracted
the world by its significant characteristics such as
color, taste and aroma, saffron is the most expensive
product and pharmaceutical plants in the world
The process and packaging
Over view of saffron industry & history
 Historically the world saffron goes as back as 10000
years, saffron derived from the word “zafaran” in
Dari means a flower its stigma
 In Dari , Pashto, Arabic it pronounce zaferan in
English saffron Spanish azafran.
 History say that saffron has long back grown in
Greece in Afghanistan growing saffron started about
2000 years back
About afghan saffron industry
 Cultivated in more than 7 provinces
 Total number of farmers 1300
 Total number of employees 67500
 Strength of production and packaging per day 300
kg
 Price per kg $ 1800
 Per year total production 20 tons
 14 private afghan companies engaged for marketing
of saffron in foreign countries
 Key competitors Iran, Greece
 14 companies & 26 association in Afghanistan. In
term of market share 3 major companies 2 in Herat
and 1 in Kabul.
 Export to UK, Spain, Italy, France, Switzerland
UAE, Japan, and so on.
SWOT Analysis
 Strengths
 Most expensive product, favorable climate , less
number of competitor, Afghanistan is labor intensive
 Weaknesses
Farmers facing the problem of finance, lack of
technology, lack of proper storage facilities
 Opportunities
Niche marketing to gain better price , great business
potential for small formers.
 Threats
quality and reputation of Iran saffron,
CANADA
CANADA Trade Policy
 Total export to US in 2013 $ 300.2 billion, import
from US $332.1 billion, deficit of $ 31.8 billion.
 The stock of US (FDI) in Canada is $352.5 billion,
Canada is currently the largest export for US goods.
 US exports of private commercial service to Canada
were $61.2 billion in 2012
NAFTA
 NAFTA singed by the US, Canada & Mexico entered
into force on January 1,1994 was suspended by the
US .
 Under the NAFTA Canada & Mexico elimited the
tariff & non tariff barriers to the trade among them.
 After that the both countries concluded
supplemental agreement and improve
environmental issue and labor law
Import policies
 Canada eliminate tariffs on all industrial and many
agricultural product imported from abroad and
that’s favorable for afghan traders
 Canada is remaining MFN tariffs on imported
machinery and equipment
SWITZERLAND
SWITZERLAND
 Import from US in 2013 were $27 billion, export to
US $28.1 billion there is surplus of $1 billion.
 US export of commercial services to Switzerland
were $26.6 billion in 2012 .
 The stock of US foreign direct investment in
Switzerland was $ 130.3 billion in 2012 up from
113.7 billion in 2011
Import policies
 Switzerland, along with Norway, Iceland, and
Liechtenstein, is a member of the European free
trade association.
 Switzerland does not participate in the European
Union single market through the European economic
area
 According to WTO , Switzerland s simple average
applied tariff is 33.5% for agriculture goods
Agricultural products
 Agriculture product is restricted by high tariff on
certain products.
 Import of all agriculture product particularly those
that competed with Swiss product are subject to
seasonal import duties , quota, and import licensing
agriculture product are not products in Switzerland
 So we can concluded that afghan saffron will also
face some problem in Switzerland because its
agriculture product.
Afghanistan trade policies and saffron industry

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Afghanistan trade policies and saffron industry

  • 1. PRESENTED TO: RADHA MAAM PRESENTED BY: NAJEEBUALLAH HEMAT 11327 HEDAYATULLAH NOORI 11292 FARHAD 1135 5 Afghanistan trade policy and Afghan Saffron
  • 2. Introduction  Afghanistan is a landlocked country located in the center Asia,  Total area 650000 sq.km  Total population 30.6 Million  Natural resource, gas petroleum, coal, cooper, chromate, talc, barites, sulfur, lead, zinc, iron ore, salt, precious and semiprecious stones etc.
  • 3.
  • 4. Afghan culture  For centuries, Afghanistan has been a mosaic of people with diverse cultures, religions and languages. Afghanistan’s ethnically and linguistically rich and mixed population reflects its location at the crossroads of Central, South and Southwest Asia. Communities with separate religions, languages, and ethnic backgrounds have lived side by side for generations. Afghanistan still remains a country of dynamic diversity. The main ethnic groups are Pashtun, Tajik, Hazara, Uzbek, Turkmen, Aimaq, Baluch, Nuristani, and Kizilbash. Pashto and Dari are Afghanistan’s official languages.
  • 5. Afghanistan Trade policy  Afghanistan occupies a key strategic location linking Central Asia with South Asia, providing China and the Far East with a direct trade route with the Middle East and Europe. At the moment, Afghanistan also faces a security threat that has region-wide implications and that can only be addressed effectively by region-wide cooperation”
  • 6. ANDS  The Afghanistan National Development strategy it facilitate trade & transaction
  • 7. ANDS  To increase and deepen Afghanistan’s participation and leadership in bilateral and region-wide initiatives and agreements that facilitate transit, transport, and investment in the region;  To promote cross-border initiatives for the equitable exploitation of shared resources of hydro power;  Extend regional cooperation on border management to better align efforts against
  • 8. CAREC, SAARC & ECO Central Asian Regional Economic Council (CAREC) South Asian Association for Regional Cooperation (SAARC) Economic Cooperation Organization (ECO) signed over 3 dozen agreements, protocols, and MOUs with other countries and organizations on trade, commerce, regional cooperation, transit, and transport.
  • 9. Customs Department  Afghanistan Customs Department (ACD) is a key department dealing with international trade and transit, therefore, Customs reforms was high on the agenda of the government it has two objectives 1. providing protection to society and 2. raising revenue to fund government’s operating expenses and as a means of achieving fiscal
  • 10. Infrastructure Development  For improvement of international supply chain and regional trade promotion. Many regional Customs offices including customs directorate were the impact assessment of infrastructure
  • 11. New Automated Exemption Module  This module has been developed by UNCTAD this module allows for web-based it is automated monitoring process this system aim to eliminated human interface and disc ration and also reduce the corruption and decreasing dive ration of customer revenue
  • 12. Customs Tariff  In 2003 Afghanistan had a highly complicated and different tariff regime with 27 bands rates unreliable from 0-150% and an average rate of 43%. In 2004 Afghanistan became a member of World Customs organization (WCO) and a new law in compliance with international stander had been passed.
  • 13.  Harmonized system (HS) of classification was introduced with valuation based on transaction value, with new tariff schedule featuring six tariff bands with rats varying from 2.5% to 16% (major bands were with 2.5 and 5%) with some prohibited goods. Changing in 2006 leaded to a slightly more complex classification and an increase in number of tariff rates .Afghanistan currently has 12 tariff bands.
  • 16.
  • 17.
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  • 19.
  • 20. South Asian Association for Regional Cooperation
  • 22. Introduction To Saffron  One of the oldest natural pants which have attracted the world by its significant characteristics such as color, taste and aroma, saffron is the most expensive product and pharmaceutical plants in the world
  • 23. The process and packaging
  • 24. Over view of saffron industry & history  Historically the world saffron goes as back as 10000 years, saffron derived from the word “zafaran” in Dari means a flower its stigma  In Dari , Pashto, Arabic it pronounce zaferan in English saffron Spanish azafran.  History say that saffron has long back grown in Greece in Afghanistan growing saffron started about 2000 years back
  • 25. About afghan saffron industry  Cultivated in more than 7 provinces  Total number of farmers 1300  Total number of employees 67500  Strength of production and packaging per day 300 kg  Price per kg $ 1800  Per year total production 20 tons  14 private afghan companies engaged for marketing of saffron in foreign countries
  • 26.  Key competitors Iran, Greece  14 companies & 26 association in Afghanistan. In term of market share 3 major companies 2 in Herat and 1 in Kabul.  Export to UK, Spain, Italy, France, Switzerland UAE, Japan, and so on.
  • 27.
  • 28. SWOT Analysis  Strengths  Most expensive product, favorable climate , less number of competitor, Afghanistan is labor intensive  Weaknesses Farmers facing the problem of finance, lack of technology, lack of proper storage facilities
  • 29.  Opportunities Niche marketing to gain better price , great business potential for small formers.  Threats quality and reputation of Iran saffron,
  • 31. CANADA Trade Policy  Total export to US in 2013 $ 300.2 billion, import from US $332.1 billion, deficit of $ 31.8 billion.  The stock of US (FDI) in Canada is $352.5 billion, Canada is currently the largest export for US goods.  US exports of private commercial service to Canada were $61.2 billion in 2012
  • 32. NAFTA  NAFTA singed by the US, Canada & Mexico entered into force on January 1,1994 was suspended by the US .  Under the NAFTA Canada & Mexico elimited the tariff & non tariff barriers to the trade among them.  After that the both countries concluded supplemental agreement and improve environmental issue and labor law
  • 33. Import policies  Canada eliminate tariffs on all industrial and many agricultural product imported from abroad and that’s favorable for afghan traders  Canada is remaining MFN tariffs on imported machinery and equipment
  • 35. SWITZERLAND  Import from US in 2013 were $27 billion, export to US $28.1 billion there is surplus of $1 billion.  US export of commercial services to Switzerland were $26.6 billion in 2012 .  The stock of US foreign direct investment in Switzerland was $ 130.3 billion in 2012 up from 113.7 billion in 2011
  • 36. Import policies  Switzerland, along with Norway, Iceland, and Liechtenstein, is a member of the European free trade association.  Switzerland does not participate in the European Union single market through the European economic area  According to WTO , Switzerland s simple average applied tariff is 33.5% for agriculture goods
  • 37. Agricultural products  Agriculture product is restricted by high tariff on certain products.  Import of all agriculture product particularly those that competed with Swiss product are subject to seasonal import duties , quota, and import licensing agriculture product are not products in Switzerland  So we can concluded that afghan saffron will also face some problem in Switzerland because its agriculture product.

Editor's Notes

  1. At the same movment afghanisan face some security threat that has rgion with implication ans thaa