With further declines in internationalassistance expected over the coming years, the government ofAfghanistan faces a new challenge of enabling new growthdrivers. One such driver is trade. Decades of civil war andmilitary occupation that culminated in the fall of theTaliban in 2001, have devastated Afghanistan. High levels ofconflict destroyed infrastructure, displaced a significantshare of the population, incentivized informal and illiciteconomic activities, and jeopardized the delivery of publicservices. Trade could be an important channel foraccelerating growth in Afghanistan. A plausible trade-drivengrowth scenario for Afghanistan should promote economic andexport diversification. This report brings new evidence onthe opportunities and challenges for development in theareas of trade in goods, trade in services, and transittrade. It also provides recommendations for an appropriatesequencing of policy reforms and strategic infrastructureinvestment to support potential growth in these sectors. Themain findings of this report suggest that governmentintervention should focus on two complementary areas ofcompetitiveness and connectivity.