Free trade between india and pakistan relationship

India–Pakistan relations - Wikipedia

free trade between india and pakistan relationship

Two, the premise that free trade between India and Pakistan can lead to The trade relations between the two countries witnessed some. Relations between India and Pakistan have been complex and largely hostile due to a number .. Khan and Nehru also signed a trade agreement, and committed to resolving .. He is a member of the European Parliament Friends of India Group, Karim was also responsible for opening up Europe to free trade with India. a vital role in determining the trade relation between Pakistan and India. ( Noshina: order to have a fair assessment of the issue, we employ the data from .

Two, the premise that free trade between India and Pakistan can lead to greater peace. And three, attention must be focused on a forgotten trade rule under international law that both countries can use to enhance their bilateral trade. Once upon a time, India and Pakistan had very high level of bilateral trade.

The trade relations between the two countries witnessed some forward movements in the late s when India, due to WTO obligations, granted the MFN status to Pakistan although Pakistan is yet to reciprocate. This is just 0. The informal trade i. The reasons for informal trade being higher than formal trade range from political tensions between the two countries to Pakistan maintaining a very high negative list — as part of this list, Pakistan forbids import of 1, items from India.

The potential of boosting trade between the two countries is immense. Reuters Free trade and peace In addition to economic benefits, trade can be useful conduit to usher in peace in the region. For liberal internationalists, the inspiration about a positive correlation between trade and peace comes from the doux commerce gentle commerce thesis dating back to the 18th century age of enlightenment in Europe.

One of the most influential proponents of this thesis, Montesquieu, argued that greater commerce between countries makes international relations peaceful. The core argument of many liberal thinkers has been that free trade fosters economic relations between countries and boosts ties of interdependence between the private sectors and the governments.

This interdependence creates new constituencies which demand and lobby for peace as it serves their interests. The overall net-effect is fewer conflicts, thus more peaceful relations.

EXPLAINED: India and Pakistan's bilateral trade relations -

Many quantitative empirical studies have tested this liberal peace hypothesis showing that increased bilateral trade reduces the possibility of interstate disputes. One recent study shows that not just increased bilateral trade interdependence but greater global trade openness also significantly promotes peace by reducing the probability of interstate conflicts.

The need to engage with the Pakistani business community, along with other actors, as part of the larger political process to improve ties between the two countries has also been highlighted by former diplomats like Shivshankar Menon.

The forgotten trade rule Given the huge economic benefits and peace dividend of bilateral trade, let us look at the options India and Pakistan have under international law to maximise their bilateral trade.

First, the countries desiring to enter into such an agreement need to notify to the WTO. In other words, despite GATT being a multilateral treaty, it permits countries to enter bilateral or regional trade agreements subject to the three conditions mentioned above.

It is believed that fulfillment of these conditions will ensure that bilateral and regional trade agreements act as building blocks for deeper multilateral engagement. While Article XXIV obligations apply to all trade agreements in goods entered by all WTO member countries, paragraph 11 of the same article exempts the application of these requirements to a trade deal that India and Pakistan may enter into.

This has led to strong tensions between the two countries and even military confrontationsresulting in Pakistan as victorious. Pakistan has long accused Afghanistan of harboring Baloch separatist rebels and attempting to sponsor separatist tendencies amongst its Pashtun and Baloch populations, going as far back as the s. It has been believed that Pakistan during the s, then under Zulfikar Ali Bhuttoin retaliation began supporting Islamist factions in Afghanistan. The later Soviet intervention in Afghanistan to prevent further escalation and eventual Islamist takeover of the country proved disastrous afterwards.

The United States and its allies feared direct Soviet involvement in Afghanistan and began aiding Pakistan's support for the Afghan Mujaheddin, in hopes of crippling the Soviet Union.

The Soviet-Afghan war turned out to be a stalemate with heavy casualties on all sides and costly for the Soviets. Under international agreement, the Soviets withdrew.

free trade between india and pakistan relationship

But various Afghan factions fought one another and their external supporters, including the Soviet Union, Iran, Pakistan and others disagreed on which should be in power. Continued rival proxy support led to the civil warin which Pakistan supported in the Talibanseeking to secure its interests in Afghanistan and providing strategic support, while India and Afghanistan's other neighbors backed the Northern Alliance.

After the Taliban defeated the Northern Alliance in much of Afghanistan in the Afghan Civil Warthe Taliban regime continued to be supported by Pakistan — one of the three countries to do so — before the 11 September attacks. India firmly opposed the Taliban and criticized Pakistan for supporting it.

India established its links with the Northern Alliance as India officially recognized their government, with the United Nations. India's relations with AfghanistanPakistan's neighbor, and its increasing presence there has irked Pakistan. The Indian embassy bombing in Kabul was a suicide bomb terror attack on the Indian embassy in KabulAfghanistan on 7 July at 8: Bush confronted Pakistani Prime Minister Yousuf Raza Gilani with evidence and warned him that in the case of another such attack he would have to take "serious action".

Insurgency in Jammu and Kashmir According to some reports published by the Council of Foreign Relationsthe Pakistan military and the ISI have provided covert support to terrorist groups active in Kashmirincluding the al-Qaeda affiliate Jaish-e-Mohammed.

Many Kashmiri militant groups also maintain their headquarters in Pakistan-administered Kashmirwhich is cited as further proof by the Indian government. Author Gordon Thomas stated that Pakistan "still sponsored terrorist groups in the state of Kashmir, funding, training and arming them in their war on attrition against India. A car bomb exploded near the Jammu and Kashmir State Assembly on 1 Octoberkilling 27 people on an attack that was blamed on Kashmiri separatists.

It was one of the most prominent attacks against India apart from on the Indian Parliament in December The dead bodies of the terrorists and the data recovered from them revealed that Pakistan was solely responsible for the activity.

EXPLAINED: India and Pakistan's bilateral trade relations

On 13 Julyarmed men believed to be a part of the Lashkar-e-Toiba threw hand grenades at the Qasim Nagar market in Srinagar and then fired on civilians standing nearby killing twenty-seven and injuring many more.

Abdul Ghani Lone, a prominent All Party Hurriyat Conference leader, was assassinated by an unidentified gunmen during a memorial rally in Srinagar. The assassination resulted in wide-scale demonstrations against the Indian occupied-forces for failing to provide enough security cover for Mr. A car bomb exploded near an armoured Indian Army vehicle in the famous Church Lane area in Srinagar killing four Indian Army personnel, one civilian and the suicide bomber.

Terrorist group Hizbul Mujahideenclaimed responsibility for the attack. A terrorist attack on 29 July at Srinigar 's city centre, Budshah Chowk, killed two and left more than 17 people injured. Most of those injured were media journalists. No Terrorist group claimed responsibility for the attack. A terrorist attack by four heavily armed terrorists on 18 Septembernear the town of Uri in the Indian state of Jammu and Kashmir, killed 18 and left more than 20 people injured.

It was reported as "the deadliest attack on security forces in Kashmir in two decades". India blamed Pakistan for carrying out the attacks, an allegation which Pakistan strongly denied and one that brought both nations to the brink of a nuclear confrontation in — However, international peace efforts ensured the cooling of tensions between the two nuclear-capable nations.

The plane was hijacked on 24 December approximately one hour after take off and was taken to Amritsar airport and then to Lahore in Pakistan. After refueling the plane took off for Dubai and then finally landed in KandaharAfghanistan. Under intense media pressure, New Delhi complied with the hijackers' demand and freed Maulana Masood Azhar from its captivity in return for the freedom of the Indian passengers on the flight.

The decision, however, cost New Delhi dearly. Maulana, who is believed to be hiding in Karachilater became the leader of Jaish-e-Mohammedan organisation which has carried out several terrorist acts against Indian security forces in Kashmir.

The Fort houses an Indian military unit and a high-security interrogation cell used both by the Central Bureau of Investigation and the Indian Army. The terrorists successfully breached the security cover around the Red Fort and opened fire at the Indian military personnel on duty killing two of them on spot.

The attack was significant because it was carried out just two days after the declaration of the cease-fire between India and Pakistan. The attack was carried out on 25 Septemberjust few days after state elections were held in Jammu and Kashmir.

India, Pakistan can take two-way trade to $30 billion, says Indian envoy

Two identical letters found on both the terrorists claimed that the attack was done in retaliation for the deaths of thousands of Muslims during the Gujarat riots. Though no terrorist group claimed responsibility for the attacks, Mumbai Police and RAW suspected Lashkar-e-Toiba 's hand in the twin blasts.

free trade between india and pakistan relationship

Before the terrorists could reach the main disputed sitethey were shot down by Indian security forces. One Hindu worshipper and two policemen were injured during the incident. This was the first major military standoff between India and Pakistan since the Kargil War in The military buildup was initiated by India responding to a Indian Parliament attack and the Jammu and Kashmir legislative assembly attack.

At least 68 people were killed, mostly Pakistani civilians but also some Indian security personnel and civilians. The sole surviving gunman Ajmal Kasab who was arrested during the attacks was found to be a Pakistani national. This fact was acknowledged by Pakistani authorities.

India, Pakistan can take two-way trade to $30 billion, says Indian envoy

Islamabad resisted the claims and demanded evidence. India provided evidence in the form of interrogations, weapons, candy wrappers, Pakistani Brand Milk Packets, and telephone sets. They also said that, given the sophistication of the attacks, the perpetrators "must have had the support of some official agencies in Pakistan". India and weapons of mass destructionPakistan and weapons of mass destructionand nuclear race India has a long history of development of nuclear weapons.

InIndia's nuclear program was aimed at the development of nuclear weapons, with Indira Gandhi carefully overseeing the development of weapons. Starting preparations for a nuclear test inIndia finally exploded its first nuclear bomb in Pokhran test range, codename Smiling Buddhain No official announcements of such cold tests were made by Pakistan government.