01 November 2006
United States, Afghanistan To Increase Economic Cooperation, October 31, 2006(Commerce secretary identifies key areas of investment in Afghanistan)
By David Shelby
Washington File Staff Writer
Washington – The United States’ relationship with Afghanistan has expanded from security issues to a growing economic cooperation, says U.S. Commerce Secretary Carlos Gutierrez.
“Afghan firms offer commitment. They offer hard work and access to Afghanistan’s resources while American firms offer technology, management and capital. That is a great combination,” he told U.S. and Afghan business leaders at a U.S.-Afghan Business Matchmaking Conference in Washington October 31.
Gutierrez said U.S. and Afghan businesses could work together “to contribute to the growth and stability of Afghanistan and strengthen both the U.S. and the Afghan economies.”
He said that bilateral trade between the two countries grew 43 percent in 2005 and is up another 54 percent for the first eight months of 2006.
The secretary said his meeting with Afghan Minister of Commerce Mohammed Amin Farhang prior to the conference resulted in a three-point plan aimed at boosting Afghanistan’s economic growth. The plan calls for improving access to capital for small and medium-sized Afghan businesses, developing the country’s agricultural resources and targeting key export industries for investment.
Gutierrez identified three industries in which Afghanistan has comparative advantages: making carpets; producing dried fruits and nuts; and mining, particularly for marble and stones. He said all three of these industries could generate tremendous growth in export revenues over the next 10 years.
With $40 million in carpet exports, the country ranks 21st among global carpet exporters behind regional rivals such as Iran, Pakistan, India, China and Nepal, according to a report by the Multilateral Investment Guarantee Agency.
Gutierrez said that Afghanistan’s $113 million in fruit and nut exports could grow to more than $800 million in 10 years given the proper investment. Similarly, he said that marble exports, currently valued at less than $1 million per year, could grow to more than $450 million.
The U.S. government supports efforts to rebuild the war-ravaged Central Asian nation through its Afghanistan Investment and Reconstruction Task Force, which works with international organizations to provide U.S. companies information about business opportunities in Afghanistan.
More information about the conference, as well as U.S. efforts to promote investment in Afghanistan is available on the Commerce Department Web Site.
For additional information on U.S. efforts to assist Afghanistan, see Rebuilding Afghanistan.
