Pakistan-India Trade:

Non-Trade-Related Stakes of the Pakistan-India Relationship
discussed and negotiated bilaterally between the two countries, and that
progress be publicized so that stakeholders are encouraged to support the
broader peace process. Similarly, issues that crop up once again or gain
importance with time, such as Afghanistan, the environment, water, education,
health, and poverty, should also be added or updated to the list of
issues on the table. Negotiations must continue on the basis of equity and
equality, and blame games or rhetorical terms (such as “failed state,” a
word generally used against Pakistan when it has faced a challenging situation)
must be avoided. The engaged role of civil society should continue,
and the Aman Ki Asha initiative should be a role model.
Regional trade blocs generally succeed when the larger economy
plays a pivotal part in integration. India must assume this leading role,
and embrace the onus of addressing the grievances and insecurities of its
neighbors by taking more generous actions. The business communities
on both sides are generally supportive of opening up markets and of increasing
trade and investments, but such measures should be undertaken
in a well-thought-out way so that there are no undue or disproportionate
harmful effects to local industries. India, due to its large industrial
base, scales of production, indigenous availability of raw materials, and,
in recent years, its acquisition of international companies, brands, and
technology, enjoys an advantage over its neighbors. Relevant safety measures
as allowed under the World Trade Organization must be in place,
and closely monitored to avoid any unscrupulous trade practices.
The business community should continue to play an important role
in increasing the interactive and commercial activities that come with
the liberalization of trade rules, but with managed expectations, as there
is generally a time lag for trade to actually materialize on the ground.
Traditional trade zones such as the Punjab areas of both nations—which
were active and integrated pre-Partition—need to be revived and their
natural synergies harnessed. Also, all stakeholders should be vigilant to
the unanticipated opportunities that arise once trade between countries
opens up after long gaps.
In the coming years, once the true benefits of trade and investment
are felt on every level of society—and especially at the common person
level, where the availability of cheaper goods from across the border can
help mitigate the burdens of poverty and inflation—one can be sure of
broad support for lasting and prosperous peace in the region. Insha Allah.
| 127 |