Syed Imran Sardar
Syed Imran Sardar is Assistant Research Officer at the Institute of Regional Studies.
DOI: http://DOI Number
Keywords: Pakistan, India, Afghanistan, Iran, China, CARs, South Asia, DTBs, IDTBs, NTBs, trade liberalization, MFN status
Abstract
Trade liberalization favours both Pakistan and India, where Pakistan could benefit from the Indian market and India could gain access to Central Asian republics and Afghanistan via Pakistan. However, it is difficult to materialize as some direct and indirect trade barriers stand in the way. Since inception, indirect trade barriers have virtually been paralyzing bilateral trade. The causes of these are deeply embedded in history and in the popular psyche of Indian and Pakistani societies. Relationship between the two is largely guided by emotions and sentiments; the sense of a bitter past have solidified mutual perceptions to such an extent that any change in the status quo would be deemed politically suicidal for the governing elite. This study argues that unless and until the indirect trade barriers are addressed properly, trade liberalization would remain a pipe dream. The study in hand provides a meta-analysis of the above mentioned direct and indirect trade barriers. It also suggests ways to improve India-Pakistan trade relations by quantifying gains from the recent developments, such as the revival of trade talks in 2011 and Pakistan’s decision to give the most-favoured nation (MFN) status to India. The paper hence presents the historical background of trade between the two, and discusses major issues which hinder trade while implying policy implications for way forward.
First Published
December 25, 2013
How to Cite
Syed Imran Sardar, “Trade Liberalization Between India and Pakistan: Focusing Direct and Indirect Barriers,” Regional Studies 32, no.1 (Winter 2013-14): 62-93, https://regionalstudies.com.pk/wp/article/trade-liberalization-between-india-and-pakistan-focusing-direct-and-indirect-barriers/
Issue
Volume 32, Issue 1