Trade, can it Herald Peace?

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Urstruly,

Please stop writing about economics and stick to something you might actually know something about (not sure what that might be but must be something you know...).

Veeresh`s #6 is quite interesting. Had no idea of the amount of ``trade`` that actually takes place and the number of Indian goods available in Pakistan. I knew there was a certain amount of smuggling but this much?

Hello Aman!!

There already is lots of trade between India and Pakistan. Trade which would otherwise be classified as ``legal`` as well as other stuff wich is ``illegal``. Let us take only that which could be classified as ``legal``?

The reality is that this ``otherwise legal`` trade goes through various levels of inefficiency, agents, via-medias, clearing houses etcetc., mostly non-governmental. These levels of inefficiency do not reduce the trade, in strict terms, but ``add value`` for those in between. And lights shine brighter in, say, Sharjah?

Now let us assume that all legitimate trade between India and Pakistan overnght went through ``normal official channels``? Do you know what activity and despair there was in some parts of the world when, for example, gold came into legal channels into India a few months ago?

What, Sir, would happen to those benefitting from the artificial levels of inefficiency brought in between if all potentially ``otherwise legal `` trade started suddenly flowing through government channels?

Yes, we would get vast media reportage on corrupt Customs officials and other such hindrances. But atleast some revenues would flow to Government coffers?

There is enough trade between India and Pakistan already, the only thing is that the ``value added`` goes to private pockets. Why would these ``private pockets`` let go, will it be that easy? The best bogey is to put the fear of India in the consumers mind. Sure, but what are the truths?

Today, the Daewoo Motorway in Pakistan, and the Daewoo buses plying on it, is owned by Tata. The tea they drink is Tetley (another Tata company). The first really big new hospital in Pakistan, 1 billion dollars, is going to be Indian, at Sheikhupura. The city-buses at Varan Transport showing lables of HinoPak are Ashok Leyland. The stolen vehicles which become taxies are from India. The movies pirated are from Bombay. The next big pipeline will be by Reliance. Aviation fuel is bought from Jamnagar. The secondary market of pavement goods is largely Indian. The profits of the liquor trade alone could bankroll a small nation. Even the paan masala is from India. Hyundai Santro cars are from Chennai.

Frankly, IMHO, India has to do nothing but make its goods available, at a reasonable price and decent quality. Which it does. Now it would be up to the Pakistanis to decide if they want to buy direct or through via-medias in other countries tripling the prices.

All interaction to follow under this article can be simplified by the following labels:

``Mine is bigger then yours``
``We are much better on this side of the divide``
``Dick measuring contest``
``Me better, you inferior``

The list is long but the idea is the same.

Asfand

i`m not a trade analyst, but it doesn`t make sense that pakistanis are willing to pay twice the price that we pay in india for the suzuki 800 just cause...i don`t know it doesn`t make sense to me??????.And the little tin box is an entry level car in india while i read that in pakistan the middle class aspire to own one and actually wait for delivery.In india they`re actually giving them away at Rs.2599.00 monthly payment.If indian made autos can be sold and exported overseas why can`t you buy them and save money,promote trade and provide employment for more people.Witness NAFTA.I guess we indians are asking too much of a feudal,bigoted nation.Sorry.Meanwhile bangladesh, srilanka nepal and bhutan are already seeing the fruits of economic cooperation with one of the top ten economies of the world, a member of the G-20 group and the world`s 6th largest nation, the world`s largest democracy and the country with the 3rd largest armed forces and the 3rd largest airforce, namely INDIA.I hate to gloAT, but i will.

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Talking about the business and nothing but the business the greatest hurdle to Pakistan declaring India as MFN is the fear that India will dump its inferior quality products in Pakistani market. In a country where manufacturer is breathing his lasts gasps under the choke hold of WTO that would mean the end of manufacturing sector in Pakistan. The problem is actually bigger than dumping - it is the abscence of legislative body in Pakistan. For the past 5 plus years there hasn`t been any legislation in this country. Not one law has been passed in that time - except that of National Security Act that was passed in a blatantly shameless way. No body knows what the constitution of the country is. Left hand doesn`t know the right. We cannot legislate anti-dumping laws in our country. Even if we impose the requirement of ISO9000 certification for import, it wont prevent Indians from dumping. So unless our fauji dictators want to be held responsible for the collective suicide of our manufacturing sector, they wouldn`t do it. But that is a smart thing to do, and such smartness is not expected of them so one can never tell what they might do; especially when with an unglee from big satan they are ready to sell their mothers what to talk of a country.