Pakistan, Afghanistan announce trade deal

Prodded by the Obama administration, Pakistan and Afghanistan on Sunday announced a rare trade partnership aimed at lifting the regional economy and undermining insurgent forces trying to destabilize the two governments.

The trade deal was described by American officials as the first such agreement between the two nations since the 1960s, and termed a means of strengthening ties and creating new jobs in trucking, banking and movement of freight.

The deal, which still has to be ratified by both countries, was announced shortly after Secretary of State Hillary Rodham Clinton arrived in Islamabad, the Pakistani capital, for a visit.

“This is a big deal,” said State Department spokesman Philip J. Crowley. “It will help both countries grow their economies and this gives both governments a powerful tool in gaining the support of their people and reducing the appeal of the insurgencies that each face.”

The announcement comes at a time when American support for the war in Afghanistan is waning, and prominent members of Congress are questioning whether it makes sense to deploy more forces to Afghanistan as part of President Obama’s troop buildup.

The number of casualties in Afghanistan has been climbing. On Sunday, a suicide bomber in Kabul, the capital, killed at least three civilians and left dozens more wounded. And the U.S. is growing increasingly impatient with corruption in President Hamid Karzai’s administration.

An ABC News- Washington Post poll released last week showed that only 43% of Americans believe the war in Afghanistan is worth fighting.

Against this backdrop, the trade deal sends a signal that the Afghan and Pakistani governments are committed to a more cooperative relationship — an important element in defeating the Taliban and Al Qaeda.

“This is their agreement and they will be the ones who will benefit from it,” Crowley said.

The U.S. said the agreement, years in the making, will expand trade along existing routes, create trade routes and curb illegal trade. By increasing government revenue, it will give both Afghanistan and Pakistan new tools to combat disease and illiteracy, according to a U.S. primer on the trade deal.

The agreement reflects a gradual warming in ties between leaders in Kabul and Islamabad, who until recently had viewed each other with suspicion. Islamabad has been particularly wary of Karzai’s government because of the growing influence in Afghanistan of Pakistan’s nuclear archrival, India.

One of the key provisions in the agreement will permit Afghan trucks to transport goods across Pakistan and to the Indian border. Right now, Afghan trucks must unload their cargo onto Pakistani trucks at the Afghan-Pakistani border. However, Indian goods destined for Afghanistan will still not be able to cross through Pakistani territory.

Once adopted, the agreement would cut transit and import costs and make exports more attractive to other countries, the U.S. said.

“It paves the way for closer ties and achieving common goals, including expanded bilateral and regional trade, new jobs and sustainable economic development,” according to a background paper released by the Obama administration.

Security measures will be taken to ensure that the liberalized trade measures don’t aid insurgents. Trucks and cargo will be monitored through special tracking devices, according to the U.S.

During her visit to Pakistan, Clinton is also expected to unveil a $500-million package of development projects for the most part aimed at addressing the country’s aging electricity grid and its ongoing water shortage.

peter.nicholas@latimes.com

Times staff writer Alex Rodriguez in Islamabad, Pakistan, contributed to this report.