India and Afghanistan have decided to take steps to simplify customs procedures and gradually lower tariff barriers to expand trade and economic relations.

A joint statement issued after a meeting between Prime Minister Manmohan Singh and visiting Afghan President Hamid Karzai said, that the measures to expand the trade include enhancing investment protection, simplifying customs and promoting the removal of non-tariff barriers.

The statement said for sustained expansion of bilateral trade and economic ties with a long-term perspective, the two sides will establish effective mechanisms for interaction.

The statement said that for enhancing the competitiveness of goods, a mechanism will be established to promote cooperation between quality assurance and standardisation institutions.

Recognising that regional economic cooperation is vital to the future economic prosperity of individual nations, both countries agreed to cooperate, both bilaterally and through regional organisations in promoting regional economic cooperation.