{"id":53347,"date":"2019-10-22T17:37:08","date_gmt":"2019-10-22T12:07:08","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=53347"},"modified":"2019-10-22T17:37:16","modified_gmt":"2019-10-22T12:07:16","slug":"answered-trade-strengthens-peace-and-there-needs-to-be-a-revised-strategy-towards-restarting-cross-line-of-control-trade-comment","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-trade-strengthens-peace-and-there-needs-to-be-a-revised-strategy-towards-restarting-cross-line-of-control-trade-comment\/","title":{"rendered":"[Answered] \u201cTrade strengthens peace and there needs to be a revised strategy towards restarting cross-Line of Control trade.\u201d Comment."},"content":{"rendered":"\n
Demand of the question<\/strong>
Introduction. <\/strong>Contextual Introduction.
Body. <\/strong>Impact of India-Pakistan tussle on cross-loc trade. Why cross-loc trade is important? What are the trade facilitation measures need to be taken? Conclusion. <\/strong>Way forward. <\/td><\/tr><\/tbody><\/table>\n\n\n\n

The India-Pakistan face-off in the recent period is having more repercussions than intended, with border economies the worst hit. In February 2019, in the wake of the Pulwama attack, India decided to withdraw the Most Favoured Nation (MFN) status to Pakistan. <\/p>\n\n\n\n

Hard hit cross-loc trade:<\/strong><\/p>\n\n\n\n

  1. The impact of\nthe escalating tensions has trickled down to trade relations between both the\ncountries, much severe this time.<\/li>
  2. In 2018-19,\nbilateral trade between India and Pakistan was valued at $2.5 billion which has\ncome down. <\/li>
  3. India\u2019s\ndecision in regards with the withdrawal of MFN status and imposition of 200%\nduty has hurt Pakistan\u2019s exports to India.<\/li>
  4. The exports\nfell from an average of $45 million per month in 2018 to $2.5 million per month\nin the last 4 months.<\/li>
  5. With Pakistan\ndeciding to completely suspend bilateral trade, cotton exports from India to\nPakistan might get affected the most, eventually hurting Pakistan\u2019s textiles.<\/li>
  6. Decision on\nIndia-Pakistan trade has a direct impact on the local economy and the people of\nAmritsar. Since February 2019, estimatedly, 5,000 families have been directly\naffected in Amritsar because of breadwinner dependence on bilateral trade.<\/li><\/ol>\n\n\n\n

    Why cross-line of control trade is important?<\/strong><\/p>\n\n\n\n

    1. The trade\nmeasure enable converting social interconnectedness into commercial\ninterdependence of the two similar yet separate sides of the LoC.<\/li>
    2. In all, the\nLoC trade rise to hope in the virtuous cycle between trade, trust and\npeople-to-people connect, building bridges and reconnecting communities<\/li>
    3. The Cross-LoC\ntrade is much more than a mere commodity exchange as the sentiments of the\npeople attached to it kept it successful.<\/li>
    4. Importantly,\ncross-LoC trade help to connect the two divided sides of Jammu and Kashmir.<\/li>
    5. It, thereby, is\nimportant to create a constituency of peace in an otherwise tense region.<\/li><\/ol>\n\n\n\n

      What are the trade facilitation measures need to be taken?<\/strong><\/p>\n\n\n\n

      1. Given the present situation in J&K, it is imperative that India plans an outreach connecting all stakeholders including the ecosystem of cross-LoC trade.<\/li>
      2. Besides, there is a need for a revised strategy towards the re-initiation of cross-LoC trade.<\/li>
      3. The lack of transparency needs to be addressed in the complete ecosystem. The measures could include standard operating procedure, invoicing, GST norms, and trader registration.<\/li>
      4. Other steps to address the long-standing concerns around cross-LoC trade include: