India- Pakistan Trade: Moving Forward With Changing Dimesions And Emerging Scenarios

India- Pakistan Trade: Moving Forward With Changing Dimesions And Emerging Scenarios

Partner: DFID

Duration: September 2012 to July 2013

Team Members: Dr. Vaqar Ahmad

Introduction:

Peace is supposed to be a dividend of enhanced economic cooperation, that's why SDPI always advocated for trade normalization between India and Pakistan. The study aims to support the Track – I initiatives through

Developing B2B India-Pakistan Trade and marketing web portal that can facilitate trader community in both countries to come together online. Revisiting and updating sector-specific NTBs faced by India and Pakistan. Taking the advocacy of India-Pakistan trade to a new level through joint track-I and track–II discourse.

Objectives:

• To create an information resource unit to facilitate Pakistan's exports into India and at the same time encourage targeted Indian services into Pakistan, with the view of facilitating and guiding Pakistan's Small Medium Enterprise (SME) and the young upcoming entrepreneurs
• To develop alternative sectors for India-Pakistan trade with a view to promote niche, long-term product lines suitable for SMEs and young entrepreneurs
• To revisit and update existing stock of knowledge on the tariff and non-tariff barriers particularly with respect to non-traditional items in India-Pakistan trade
• To go beyond the standard estimation of changing producer margin in trade, and evaluate how consumers gain from easing of restrictions in India-Pakistan trade
• To identify trade costs on account of some particular logistic-related NTBs (for select set of goods) and recommend (from the point of view of freight-forwarders) how to reduce them
• To identify venues through which track – II efforts can complement track – I in strengthening trade ties between India and Pakistan

Activities:

• Identification of sectorial NTBs in India and Pakistan
• Analysis of select trade specific commodities in both the countries and barriers in their cross border movement
• Primary data collection
• Report writing
• Dissemination of research findings and policy recommendations

Recommendations:

• Government on both sides of the border should increase dialogue between commerce department and negotiations should take place sector by sector across border
• The business community should also be involved in the process
• In-depth research is needed to address the removal of sectorial Non-Tariff Barriers.
• Close communication should be ensured between the products standard and certification authorities in India and Pakistan
• The customs  officials on land routes should be allowed to interact more frequently
• Greater track – II level efforts are required by the Civil Society Organizations on both sides of the border
• The visa restrictions for business community should be eased