Uzbekistan Railways will implement additional charges on freight shipments to Afghanistan from November 7, the joint-stock company said, a move an Afghan businessman warned could push up prices in Afghan markets.
The surcharges range from 800,000 soums to 1.3 million soums ($67 to $109) per wagon, depending on tariff category, according to the company. They apply to most goods transiting Uzbekistan to Afghanistan. Wheat, edible oil, petroleum products and gas are exempt.
Company representatives said the decision aims to prevent a drop in revenue, TOLOnews reported.
“Higher costs for shipping goods by wagon could push up product prices in Afghan markets,” businessman Omid Haidari said. “We propose that Uzbekistan also reduce transport and transit fees.”
The announcement comes as the two countries seek to expand trade and agricultural cooperation. Afghanistan’s deputy minister of agriculture, irrigation and livestock held an online meeting with Uzbekistan’s deputy agriculture minister. They discussed exporting Afghan meat and potatoes to Uzbekistan, developing cotton growing and horticulture, and setting up a seed center.
“The meeting was held to strengthen agricultural and livestock ties, and to develop trade cooperation, joint investment and technical exchange,” ministry spokesman Sher Mohammad Hatami said.
How the charges will affect trade between the two countries remains unclear.
Afghanistan depends on imports, and closer economic ties with Central Asian states are important, TOLOnews reported.
“The more Afghanistan expands its ties with Central Asian countries, the more it can diversify trade routes and reduce its dependence on a single route,” analyst Abdul Nasir Reshtia said.