Pakistan-India Trade:

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The Pakistan-India Trade Relationship: Prospects, Profits, and Pitfalls Pakistan/Publications/The-long-and-rocky-road-to-India-Pakistan-rapprochement. 7. Pew Research Center/Global Attitudes Project, “Deepening Economic Doubts in India,” September 10, 2012, http://www.pewglobal.org/files/2012/09/Pew-Global- Attitudes-Project-India-Report-FINAL-September-10-2012.pdf. 8. Myra MacDonald, “In Optimism Over India-Pakistan Trade, a Warning Flag,” Reuters, May 13, 2012, http://blogs.reuters.com/pakistan/2012/05/13/ in-optimism-over-india-pakistan-trade-a-warning-flag/. 9. “Trade Talks with Pakistan Hit Speed-Breaker,” The Hindu, June 18, 2012, http:// www.thehindu.com/business/Economy/article3543215.ece. 10. Zafar Bhutta, “Euphoria Evaporates: Pakistan and India Fail to Strike Oil Trade Deal,” Express Tribune, July 21, 2012, http://tribune.com.pk/story/411082/ euphoria-evaporates-pakistan-and-india-fail-to-strike-oil-trade-deal/. 11. “Efforts Needed to Ease out Pak-India Trade Issues,” The Nation, November 7, 2012, http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/ business/07-Nov-2012/efforts-needed-to-ease-out-pak-india-trade-issues. | 17 |
Moving Toward Pakistan-India Trade Normalization: An Overview | 18 | ZAFAR MAHMOOD The impediments to Pakistan-India trade have been the focus of intense attention for a long time. Although a number of experts and institutions like the World Bank have supported the liberalization of trade between the two countries, fears and apprehensions as well as the adversarial bilateral relationship between the countries have not allowed them to move forward in this particular domain. As is the case in most parts of the world, trade and politics intermingle on the Subcontinent. In the last year, however, trade ties have been improving significantly. Why there is a thaw in bilateral trade relations now and not before may be a valid question playing on the minds of people following the trajectory of trade relations between the two countries. hisToriCal ConTeXT In order to fully understand what has happened over the last year, it may be useful to look at the historical perspective, right from the time that the two countries became independent. As we know, in August 1947, the British colonial government partitioned the Dominion of India into the independent countries of Pakistan and India. The General Agreement on Tariffs and Trade (GATT) was negotiated almost at the same time that Partition was leading to the creation of Pakistan. The founding members of GATT, keeping in view the fact that the Subcontinent was more or less a single economy, allowed special dispensation for the two countries under Article 24 (paragraph 11) of Zafar Mahmood is a former commerce secretary of Pakistan.
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