TRADE BETWEEN PAKISTAN & INDIA (+National Interest)

DANEYAL MIRZA L1F09BBAM0240 IR SECTION A SIR. U.S RANA

2/17/2012

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Trade between Pakistan & India By Daneyal Mirza

he trade policies are liberalizing, Pakistan and India, the two neighboring countries are making progress in making a trustworthy relationship. Because a large number of people visited about fifty Indian products and services in Lahore Exhibition Centre from February 1113-2012. First time in the last few years, Indian companies came to such a trade show in Pakistan. Furthermore, for the first time Indian Commerce Minister Anand Sharma paid a visit to Pakistan along with 120 Indian business firms and traders. The traders from Pakistani side are assisting the government in bringing a balance in bilateral relations between the two neighbors. Although India has not still permitted some Pakistani products to be exported to India due to non-tariff barriers, Pakistan is mulling to give India status of Most Favored Nation (MFN). People of the duo countries, Pakistanis and the Indians want peaceful relations with each other. Free trade between Pakistan and India will not only reduce the tensions on their borders but it will also enable Pakistanis security forces to focus in handling and tackling internal matters such as terrorism etc. It is quite an ideal time for both the countries to forget and forgave their past, moving their concentration on illiteracy and poverty, which are prevailing in the two countries. Millions of people are living below poverty line across the borders, depriving of their basic necessities. In order to overcome energy crisis, unemployment and increase its per capita income, Pakistan is required of directed investment. Upon which, we should permit Indian investors, who have already made huge investment in other countries. Ultimately, it will serve Pakistan, particularly in real estate and energy sector. The security of the any state in the todays global world is depends on its per capita income of its citizens rather than of its defence capability and on the number of nukes it possess. Despite having huge pile of nuclear weapons, Soviet Union was not able to protect itself from breakdown #killing Point! The living standard of the countrys citizens ensures security and future of the countries. Pakistan is blessed with hardworking people and tremendous natural resources. The only need of the hour is to harness them by having friendly ties with neighboring states on mutual interests.

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Trade between Pakistan & India By Daneyal Mirza

One of most priority is change our foreign policy and security policy doctrine, if we want to go forward. Furthermore, it is time to close the chapter of past history and should move on thinking about the future. We have to follow some good and long term policies if we want to become a role model Islamic welfare state. With an expected jump in trade, a simultaneous increase in people-topeople and private-sector interaction is logical. Increased trade should be seen as a starting point for reducing tensions between the two countries and as a step in the right direction. The move also seems to indicate that the countries are willing to separate economic issues from their more difficult political issues, which can only help move forward the formal dialogue they resumed this summer. A baffling array of legal and practical barriers to exports between the neighbours has spurned unofficial trade worth up to $10 billion, dwarfing official exchanges of $2.7 billion. But a recent rapprochement that looks to normalize trading relations between India and Pakistan could end a decades-old system that stifles business and saps profits through networks of middlemen, money changers and smugglers. For example: At old markets in Lahore, traders peddle whitening creams and hair dyes that have journeyed from India to Karachi by sea bound for Afghanistan, before being reloaded and smuggled along the Taliban-hit Hindu Kush to re-enter Pakistan. Along the way a simple anti-wrinkle cream rises from 75 rupees (85 cents) to 160 rupees ($1.82), while black hair dye doubles from five to 10 rupees. Tons of industrial chemicals and drugs travel into Dubai, where their port of origin is relabeled to hide their Indian provenance before being sent on to Pakistan. The process entails a mark-up of 15-20 percent, say importers. Pakistan has pledged to open its market to over 7,000 products from India over the next three months and says India should have MFN status by the end of 2012, a step to removing discriminatory higher pricing and duty tariffs. A deeper economic engagement between the countries that is crucial for lasting peace in the region. People who are pro-trade have prevailed. For

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Trade between Pakistan & India By Daneyal Mirza

the first time our strategists are viewing economic security as a significant element of national security. The Pakistan Business Council estimates that enhanced bilateral trade could bump its growth rate by 1-2 per cent. Experts predict $1.5-2 billion could be saved by routing imports directly into India and its 1.2 billion consumers. For businessmen, their biggest problem is not being able to travel freely. I want to export this item to India but I cannot go and cannot market my product. Visa is the main hurdle, said Aftab Ahmed Vohna, who sits on the Pakistan-India standing committee for the Lahore Chamber of Commerce.

ut powerful lobbies remain unconvinced that the hostilities that have led to three wars since independence can melt away. Hundreds of activists in Pakistani-administered Kashmir on Friday demonstrated against improving trade, and leaders in industries likely to lose out to open competition with India are loudly demanding an opt-out. They fear that Pakistan will be flooded with cheaper Indian goods, strangling domestic business, which free trade with Indias big rival and Pakistans close ally China has failed to do so. Some Epic Reasons for supporting the Trade scene: Every person argues with me that Indian goods will close our factories. I tell them if Chinese cheap goods cannot close our factories, Indias will not. #EPIC! If 10% of Pakistani people purchase Indian goods , Pakistan will get only 1 core 70 lakh people as customer but if 10% of Indian population purchase Pakistani goods We people will get 20 crore customer more than our population. #HOWSTHAT! Pakistan has a huge market in India, in VALUE ADDED PRODUCTS, e.g. frozen ready to eat naan, kabab, mithai, mango products, spice mixes. These are just a few examples, suggesting that the more processing is done in Pakistan, the more wealth is generated. Economic emancipation ensures social security which in turn ensures the security and stability of the Nation. They are the intangible weapons against militancy and separatism. The fact is a lot of middlemen make money and consumers pay more while governments lose money.

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Trade between Pakistan & India By Daneyal Mirza

Conclusion: It is high time that the two governments & those controlling policies making, sit down & get rid of all the foolish barriers. Till around the fifteenth century, the Indian subcontinent was the worlds largest economy. It is time to restore it to that position. The British left the subcontinent 6 Decades ago but the legacy has continued resulting in the region becoming one of the poorest in the world. Hence It will benefit both countries and do not forget that 21st Century is going to be Century of Indian Subcontinent.

References: Publication: India-Pakistan-trade-better-late-never www.bbc.co.uk www.newspakistan.pk/trade-pakistan-india Dawn News

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National Interest:
he national interest, often referred to by the French expression raison d'tat (English: reason of the State), is a country's goals and ambitions whether economic, military, or cultural (Wikipedia)

For me , National interest is really difficult to define clearly. Because the label, "National Interest" is so broad. Therefore, the government tries to narrow the definition of "National Interest" to: Defense National Security Economy Interstate and Foreign Commerce Foreign relations And the state of general national affairs.

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Trade between Pakistan & India By Daneyal Mirza

The best examples that can be set in concrete with national interest are for instance a federal energy policy. Since "energy" is at the root of just about every issue from transportation, national defense, commerce and foreign relations, not to mention national security etc. that its strategic in nature; energy is a "national interest". The reason why its so hard to nail down is that the national interest is so varied and extends into so many corners of our daily lives, its sometimes hard to define only one area unless its a glaring area. Another area would be defense. The defense of this nation requires a standing military made up of several branches. Therefore it is in our national interest to have a strong and capable military.

References: Foreignaffairs.com Brecorder.com Tribune.pk Wikipedia