The Afghan Carpet Industry

The Afghan Carpet industry represents a major potential revenue source for Afghan private sector-led growth. Reviving the Afghan Carpet industry, however, will require several steps, which can be carried on concurrently but which will all need to be in place to maximize the revenue-earning potential of this industry to assist in Afghanistan's reconstruction.

First, the recent grant of GSP benefits to Afghanistan must be expanded to include a textile handicraft agreement.

Second, the Afghan government, with the assistance of the international private sector or assistance funds, must rehabilitate appropriate industrial space for carpet factory operations.

Third, the Afghan government must establish adequate regulatory and commercial safeguards to make industry actors secure.

Fourth, the largely expatriate Afghan carpet industry must be enticed to return to Afghanistan from abroad - mostly Pakistan.

Fifth, through appropriate application of current trade preferences for both the US and the EU, overseas markets must be secured.

Sixth, adequate means of transporting Afghan-origin goods to overseas markets must be developed. If all these elements can be put in place, the massive earning potential of the Afghan carpet industry can be harnessed to benefit Afghan reconstruction efforts.

Reviving the Afghan carpet industry would dramatically boost export earnings, provide huge labor-intensive employment opportunities, enhance FDI in Afghanistan, and help rehabilitate industrial infrastructure. While the steps above are all necessary to maximize the Afghan carpet industry's potential, work can begin immediately to implement these measures. In the near future, with cooperation between the Afghan and American private sectors and governments, the proud label "Made in Afghanistan" can once again grace hand-made carpets in American carpet dealer showrooms from coast to coast.