Trade cooperation and liberalisation has been a
controversial issue in South Asia in general and for India
and Pakistan, in particular. Scholars, economic experts and
leaders of South Asian Countries have generally been
divided on the issue. This paper provides a brief overview of
why this is the case, explores Pakistan‟s apprehensions
towards enhancing trade ties with India and offers prospects
of bilateral trade looking at its potential effects and
challenges for the region.
The document discusses regional integration in South Asia, highlighting both opportunities and challenges. It notes that South Asia has strong economic growth potential due to its large consumer base and workforce, but faces challenges like poverty, low incomes, and underdeveloped agriculture and industry. To overcome these challenges, the document argues that increased regional trade, investment, and cooperation are needed to create regional value chains and boost development. It recommends adopting economic reforms and improving connectivity to leverage South Asia's resources and drive growth that reduces poverty across the region.
From regional security to regional integration in west africaKayode Fayemi
This document discusses regional integration in West Africa compared to the ASEAN experience. It provides background on regional organizations and their rationale. It then discusses ECOWAS and its focus on security issues in West Africa rather than economic integration. In contrast, ASEAN has been more successful in promoting trade and investment. The document examines lessons that can be learned from ASEAN's experience to help strengthen economic cooperation within ECOWAS.
An evaluation of the trade relations of bangladesh with aseanAlexander Decker
This document analyzes the trade relations between Bangladesh and the Association of Southeast Asian Nations (ASEAN). It finds that while Bangladesh's imports from ASEAN have increased at an average annual rate of 16%, Bangladesh's exports to ASEAN have only increased at 1.6% annually on average. Bangladesh also has a large and growing trade deficit with ASEAN, averaging an 18% annual increase. The document aims to evaluate Bangladesh's current trade performance with ASEAN and provide policy recommendations to improve the trade relationship in order to reduce Bangladesh's dependence on exports to Western countries.
The document summarizes an investment summit in India focused on the economy, outlook, and capital growth. It provides details on the global and Indian economic outlooks, highlights of the Indian economy, and an overview of the investment summit. The summit aims to accelerate Indian economic growth and identify opportunities and roadblocks. It will include sessions on investment trends, viewpoints from CEOs/CFOs, emerging models, and policies. Speakers will include officials, financial leaders, managers, and academics to discuss the status and projections of core and emerging economy segments.
Iftekhar's papers on an evalution of the trade relations of bangladesh with a...iftekharchy
- The document analyzes Bangladesh's trade relations with ASEAN countries from 1999-2010. It finds that while Bangladesh's exports to ASEAN have increased over time, the growth has been moderate, averaging only 1.6% of Bangladesh's total exports. Meanwhile, Bangladesh's imports from ASEAN have increased more sharply, averaging 16% of Bangladesh's total imports. As a result, Bangladesh's trade deficit with ASEAN countries has also increased over time, with the average growth rate of the deficit being 18%. The document concludes by recommending some policy changes to help improve Bangladesh's trade balance, especially with ASEAN nations.
This document compares the national strategic plans of the Ministry of Commerce of Thailand and China. It finds that both countries aim to promote domestic economic development and improve competitiveness of domestic businesses through their strategic plans. Thailand's plan focuses on tapping economic potential and improving trade relations with neighboring countries. China's One Belt One Road initiative aims to boost connectivity and cooperation between China and other countries along the route to mutually benefit economic development. The strategies of both countries emphasize improving trade and welcoming foreign investment.
Free trade agreements are agreements between countries to reduce or eliminate barriers to trade such as tariffs and regulatory laws. They are promoted by organizations like the World Trade Organization to encourage trade without barriers. There are bilateral agreements between two countries as well as multilateral agreements involving more than two countries to broadly liberalize trade across an interdependent global economy.
The document discusses regional integration in South Asia, highlighting both opportunities and challenges. It notes that South Asia has strong economic growth potential due to its large consumer base and workforce, but faces challenges like poverty, low incomes, and underdeveloped agriculture and industry. To overcome these challenges, the document argues that increased regional trade, investment, and cooperation are needed to create regional value chains and boost development. It recommends adopting economic reforms and improving connectivity to leverage South Asia's resources and drive growth that reduces poverty across the region.
From regional security to regional integration in west africaKayode Fayemi
This document discusses regional integration in West Africa compared to the ASEAN experience. It provides background on regional organizations and their rationale. It then discusses ECOWAS and its focus on security issues in West Africa rather than economic integration. In contrast, ASEAN has been more successful in promoting trade and investment. The document examines lessons that can be learned from ASEAN's experience to help strengthen economic cooperation within ECOWAS.
An evaluation of the trade relations of bangladesh with aseanAlexander Decker
This document analyzes the trade relations between Bangladesh and the Association of Southeast Asian Nations (ASEAN). It finds that while Bangladesh's imports from ASEAN have increased at an average annual rate of 16%, Bangladesh's exports to ASEAN have only increased at 1.6% annually on average. Bangladesh also has a large and growing trade deficit with ASEAN, averaging an 18% annual increase. The document aims to evaluate Bangladesh's current trade performance with ASEAN and provide policy recommendations to improve the trade relationship in order to reduce Bangladesh's dependence on exports to Western countries.
The document summarizes an investment summit in India focused on the economy, outlook, and capital growth. It provides details on the global and Indian economic outlooks, highlights of the Indian economy, and an overview of the investment summit. The summit aims to accelerate Indian economic growth and identify opportunities and roadblocks. It will include sessions on investment trends, viewpoints from CEOs/CFOs, emerging models, and policies. Speakers will include officials, financial leaders, managers, and academics to discuss the status and projections of core and emerging economy segments.
Iftekhar's papers on an evalution of the trade relations of bangladesh with a...iftekharchy
- The document analyzes Bangladesh's trade relations with ASEAN countries from 1999-2010. It finds that while Bangladesh's exports to ASEAN have increased over time, the growth has been moderate, averaging only 1.6% of Bangladesh's total exports. Meanwhile, Bangladesh's imports from ASEAN have increased more sharply, averaging 16% of Bangladesh's total imports. As a result, Bangladesh's trade deficit with ASEAN countries has also increased over time, with the average growth rate of the deficit being 18%. The document concludes by recommending some policy changes to help improve Bangladesh's trade balance, especially with ASEAN nations.
This document compares the national strategic plans of the Ministry of Commerce of Thailand and China. It finds that both countries aim to promote domestic economic development and improve competitiveness of domestic businesses through their strategic plans. Thailand's plan focuses on tapping economic potential and improving trade relations with neighboring countries. China's One Belt One Road initiative aims to boost connectivity and cooperation between China and other countries along the route to mutually benefit economic development. The strategies of both countries emphasize improving trade and welcoming foreign investment.
Free trade agreements are agreements between countries to reduce or eliminate barriers to trade such as tariffs and regulatory laws. They are promoted by organizations like the World Trade Organization to encourage trade without barriers. There are bilateral agreements between two countries as well as multilateral agreements involving more than two countries to broadly liberalize trade across an interdependent global economy.
This Slidedoc presents a strategic framework that provides insights into China’s behaviour and highlights various alternative policies that China may consider for engagement in the Indian Subcontinent. An underlying assumption is that China is modeled as a rational actor in this framework.
What is China’s strategy in the Indian subcontinent?
China’s growing footprint in the Indian subcontinent is one arc of an overarching strategy to expand its global presence and influence. This study unpacks the underlying drivers of China’s policy in the region and examines the enabling and constraining factors. Based on these, it identifies a repertoire of ongoing measures and long-term policy approaches that China can and is employing.
China's ongoing measures of engagement in the subcontinent include:
Control over resource streams
Display of aggressive intent by Chinese armed forces
Control over flows of people and ideas
Denial/Provision of support at international fora
China's long term approaches to expand its presence and influence include:
Investing in multi-purpose projects
Interfering in domestic affairs of other states
Providing strategic support to non-democratic regimes
Expanding hard power reach
Paper on Emerging Economies by Abhishek PandeAbhishek Pande
1. The document discusses financial reforms in emerging Asian economies. It analyzes policies around fiscal consolidation, sustainable growth, and increased economic cooperation within Asia.
2. Key points include the importance of resolving policy uncertainty in advanced economies to support Asian growth, deeper fiscal and financial integration in Europe, and opportunities for greater trade and financial integration within Asia.
3. The paper recommends setting up financial oversight agencies in emerging Asian nations to coordinate regulation and support sustainable development goals in the region.
The Role of Banking Collaboration in Development of Pakistan and China Trade ...IOSR Journals
This document discusses the role of banking collaboration between Pakistan and China in developing their trade and economies. It notes that increasing globalization has allowed Pakistan to benefit from partnerships beyond just India. Banking collaborations between Chinese and Pakistani banks are explored as a mechanism for both countries' economic development and survival in international trade. However, most Pakistani banks have restricted collaborations domestically. The viability and importance of banking collaborations for both countries' economies and banks are examined. Partnerships between China and Pakistan are also discussed, highlighting their importance for development as no country exists in isolation.
This document discusses financial reforms in emerging Asian economies. It outlines the policy agenda needed to sustain economic growth, including increasing economic cooperation within Asia through greater regional trade and financial integration. It also stresses the importance of fiscal consolidation while supporting growth. The document recommends establishing financial sector oversight agencies in emerging Asian countries to coordinate regulatory work and provide oversight of financial development.
The document discusses Turkey's 2015 G20 presidency priorities ahead of the Antalya Leaders' Summit and previews China's upcoming 2016 presidency. Turkey's priorities focused on investment, implementation, and inclusiveness ("the three I's"). Key achievements included an accountability framework for G20 growth efforts and country-specific investment strategies. Turkey also emphasized inclusiveness through forums like the World SME Forum. The 2016 Chinese presidency is anticipated as a chance to address long-term economic challenges through issues like financial regulation, trade, growth, and development. China will likely pursue pragmatic progress within the existing G20 agenda.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
The East African Community (EAC) was established in 2000 between Kenya, Uganda and Tanzania with the aim of increasing trade and economic cooperation in the region. It has since expanded to include Rwanda and Burundi. The EAC seeks to create a large common market to attract investment and increase competitiveness. With a population of over 137 million currently that is projected to exceed 150 million by 2015, the EAC represents a sizable consumer market in Africa second only to Nigeria. Member states have also experienced strong GDP growth averaging around 8-9% annually in recent years. While challenges remain, the EAC's political and economic integration has progressed further than its previous iteration and its development is expected to significantly impact business opportunities in East
Dissertation fdi-foreign-direct-investmentTutors India
We write abstract for your master’s dissertation which would approximately contain 250 to 350 words. We complete the abstract after the full dissertation has been written that includes a brief summary of introduction or background, objectives, boundaries, methodology, the results of the dissertation research, main conclusion that you arrive, and recommendations
We begin a promising new decade on a hopeful note.
To help navigate the road ahead, we present to you our `Investment Outlook 2020’ report. In it, we seek to examine several long-term socio-economic trends alongside our traditional market analysis to showcase important ideas and provide actionable insights. These are complemented, once again this year, by opinions from decision-makers and thought-leaders across different professional arenas.
INDIA-JAPAN ECONOMIC COOPERATION: PROSPECTS AND CHALLENGESRaja Sarkar
India's growing economic might in recent years has seen the country adapting its economic
policy towards several countries to enhance its global influence and status to meet the ever
increasing challenges of the 21st century economy. As a result, India-Japan relations have
undergone a tectonic shift which is directed towards building a strategic and global
partnership between the two countries. India and Japan share a special relationship as
fellow democracies with mutual interests and with a similar desire to seek peaceful
resolutions of conflicts and greater economic engagements in Asia. The signing of the
Indo-Japan Economic Partnership agreement (EPA) in February, 2011 and its subsequent
implementation in August the same year was seen as a major breakthrough in the
economic cooperation between the two countries which could boost bilateral trade and
investment relations between two very large economies in the world. The emergence of
Japan as one of the leading economic powerhouse in the world has been possible due to
intricate planning at economic, political and social levels. The economic development of
any country vis-á-vis the rest of the world depends on a number of factors, such as share in
world trade, finance and investment. Current and future economic and population
dynamics in both the countries mean that India-Japan relations will continue to improve not
just politically but also in economic terms. The present paper will try to find the future
prospects and challenges in the economic cooperation between the two nations.
1) The document discusses the growing influence and engagement of India and China in Africa, describing it as a "new great game" for influence on the continent.
2) It notes that both countries are pursuing stronger economic and political ties with African nations to further their national interests and become major players in Africa's development.
3) India and China are taking different strategic approaches in Africa, with India focusing on capacity building programs in areas like healthcare, education, and infrastructure, while China seeks to secure oil and other natural resources through major investments and loans.
An exploration of the finance growth nexus-long run and causality evidences ...Alexander Decker
This document explores the relationship between financial development and real sector growth in selected countries of the South Asian Association for Regional Cooperation (SAARC) region from 1975 to 2009. It first reviews previous literature on the finance-growth nexus and discusses variables used to measure financial development and real sector growth. The study then presents descriptive statistics and aims to empirically examine whether there is a long-run relationship and causal relationship between financial development and real sector growth in the SAARC countries of Pakistan, India, Nepal and Sri Lanka using cointegration and Granger causality tests.
Shaanxi plays an important role as a new starting point for Silk Road Economic Belt. Based on the
data of joint annual inspection of foreign capital enterprises in Shaanxi province in 2015, 88 Silk Road
enterprises invested in Shaanxi Province were obtained. Starting from the basic situation of these enterprises,
analyzes the source of foreign investment and industry distribution, and the characteristics of Shaanxi foreigninvested enterprise based on input-output theory, input includes the scale and mode of investment, the
employment situation. Output includes revenue and profit, tax situation. And then calculating the score by factor
analysis of the enterprise's comprehensive performance. Through the analysis we found that enterprises invested
by Silk Road Economic Belt in Shaanxi are mostly from European countries, little investment from Asian
countries and no investment from the five Central Asian countries, comprehensive performance of EU countries
is better than that of the Asian countries, the overall profitability of Shaanxi foreign-invested enterprises from
Silk Road Economic Belt is not very ideal, mostly has a poor comprehensive management status.
Chinese economic activities and interests in developing countries have rapidly increased since China's economic reforms in 1978. Chinese firms are now actively investing in Latin America and Africa, challenging American and European companies. This paper examines China's role and interests in developing countries, why it prefers to invest in these regions, and the effects of Chinese economic activities in Latin America and Africa. It finds that China pursues its national interests in developing countries, such as natural resources, to fuel its own economy. While Chinese investment has benefits such as infrastructure development, it is also motivated by accessing resources rather than political solidarity. Chinese firms have also been more successful than Western firms in some developing countries due to their non-interventionist approach and unconditional economic operations.
India’s behaviour towards elimination of trade barriers in south asiaSardar Ahmad
The study focuses on India‘s role in economic cooperation
in South Asia. It explores: what role India has played in
conclusion of different trading arrangements in the region;
and how far India has dispelled the economic concerns of
smaller regional countries (SRCs). India played leading role
in conclusion of SAPTA and SAFTA as well as bilateral
trade arrangements with Bhutan, Bangladesh, Maldives,
Nepal and Sri Lanka. The agreements with Nepal and Sri
Lanka encountered difficulties after showing initial
successes. SRCs including Bangladesh and Pakistan face
obstacles in enhancing their exports to India. New Delhi has
so far not taken enough measures to address the concerns of
the SRCs. The prevailing tariffs, non-tariff and para-tariff
barriers impede access to Indian market for regional
products. The resultant widening trade imbalances strain
relations between India and SRCs and also impede the
development of overall regional cooperation process in
South Asia.
South Asia has high potential for increased intra-regional trade but currently only conducts around 5% of trade within the region. Major challenges include political tensions, infrastructure gaps, trade barriers such as tariffs and non-tariff measures. While organizations like SAARC aim to promote regional cooperation, implementation of agreements like SAFTA has been slow and trade remains below potential. India has been deepening economic ties with its neighbors through various trade agreements but large trade deficits remain. Expanding cross-border infrastructure, streamlining border procedures, harmonizing standards, and further reducing barriers can help South Asian countries realize higher levels of intra-regional trade.
This document provides an overview of the South Asian Association for Regional Cooperation (SAARC). It discusses that SAARC was established in 1985 with 7 founding members and aims to promote economic and regional integration. Key areas of cooperation include agriculture, rural development, health and more. It outlines the principles of SAARC including sovereignty and non-interference. Challenges to SAARC include political tensions between members like India and Pakistan as well as a lack of infrastructure connectivity.
Trade relations between India and Pakistan have been historically significant but currently remain limited. While India granted Pakistan MFN status in 1996, Pakistan has not fully reciprocated. The trade complementarity index shows opportunities for India to engage more with Pakistan. Granting MFN status would deepen economic engagement and reduce costs of informal trade between the countries, benefiting both economies. However, geopolitical tensions continue to hinder closer trade relations despite initiatives like SAFTA.
India looks at regional trading arrangements (RTAs) as “building blocks” towards the overall objective of trade liberalization. Therefore, it is participating in a number of RTAs which include structures such as free trade agreements (FTAs), preferential trade agreements (PTAs), and comprehensive economic cooperation agreements (CECAs).
Free Trade Agreement
A free trade agreement among two countries or group of countries agrees to abolish tariffs, quotas and preferences on most of the goods (if not all) between them. Countries choose an FTA if their economical structures are complementary, not competitive.
India is engaged in several regional trade agreements (RTAs) aimed at liberalizing trade. These include bilateral agreements like the India-ASEAN agreement for trade in services and investment that is scheduled to be signed in 2014. India also has agreements like the Comprehensive Economic Partnership Agreement currently being negotiated with Sri Lanka to expand the existing free trade agreement between the two countries. India is similarly negotiating a Comprehensive Economic Cooperation Agreement with Thailand to build upon their existing framework agreement for free trade. These various RTAs seek to reduce tariffs and barriers to trade in goods, services and investment between the partner countries.
This Slidedoc presents a strategic framework that provides insights into China’s behaviour and highlights various alternative policies that China may consider for engagement in the Indian Subcontinent. An underlying assumption is that China is modeled as a rational actor in this framework.
What is China’s strategy in the Indian subcontinent?
China’s growing footprint in the Indian subcontinent is one arc of an overarching strategy to expand its global presence and influence. This study unpacks the underlying drivers of China’s policy in the region and examines the enabling and constraining factors. Based on these, it identifies a repertoire of ongoing measures and long-term policy approaches that China can and is employing.
China's ongoing measures of engagement in the subcontinent include:
Control over resource streams
Display of aggressive intent by Chinese armed forces
Control over flows of people and ideas
Denial/Provision of support at international fora
China's long term approaches to expand its presence and influence include:
Investing in multi-purpose projects
Interfering in domestic affairs of other states
Providing strategic support to non-democratic regimes
Expanding hard power reach
Paper on Emerging Economies by Abhishek PandeAbhishek Pande
1. The document discusses financial reforms in emerging Asian economies. It analyzes policies around fiscal consolidation, sustainable growth, and increased economic cooperation within Asia.
2. Key points include the importance of resolving policy uncertainty in advanced economies to support Asian growth, deeper fiscal and financial integration in Europe, and opportunities for greater trade and financial integration within Asia.
3. The paper recommends setting up financial oversight agencies in emerging Asian nations to coordinate regulation and support sustainable development goals in the region.
The Role of Banking Collaboration in Development of Pakistan and China Trade ...IOSR Journals
This document discusses the role of banking collaboration between Pakistan and China in developing their trade and economies. It notes that increasing globalization has allowed Pakistan to benefit from partnerships beyond just India. Banking collaborations between Chinese and Pakistani banks are explored as a mechanism for both countries' economic development and survival in international trade. However, most Pakistani banks have restricted collaborations domestically. The viability and importance of banking collaborations for both countries' economies and banks are examined. Partnerships between China and Pakistan are also discussed, highlighting their importance for development as no country exists in isolation.
This document discusses financial reforms in emerging Asian economies. It outlines the policy agenda needed to sustain economic growth, including increasing economic cooperation within Asia through greater regional trade and financial integration. It also stresses the importance of fiscal consolidation while supporting growth. The document recommends establishing financial sector oversight agencies in emerging Asian countries to coordinate regulatory work and provide oversight of financial development.
The document discusses Turkey's 2015 G20 presidency priorities ahead of the Antalya Leaders' Summit and previews China's upcoming 2016 presidency. Turkey's priorities focused on investment, implementation, and inclusiveness ("the three I's"). Key achievements included an accountability framework for G20 growth efforts and country-specific investment strategies. Turkey also emphasized inclusiveness through forums like the World SME Forum. The 2016 Chinese presidency is anticipated as a chance to address long-term economic challenges through issues like financial regulation, trade, growth, and development. China will likely pursue pragmatic progress within the existing G20 agenda.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
The East African Community (EAC) was established in 2000 between Kenya, Uganda and Tanzania with the aim of increasing trade and economic cooperation in the region. It has since expanded to include Rwanda and Burundi. The EAC seeks to create a large common market to attract investment and increase competitiveness. With a population of over 137 million currently that is projected to exceed 150 million by 2015, the EAC represents a sizable consumer market in Africa second only to Nigeria. Member states have also experienced strong GDP growth averaging around 8-9% annually in recent years. While challenges remain, the EAC's political and economic integration has progressed further than its previous iteration and its development is expected to significantly impact business opportunities in East
Dissertation fdi-foreign-direct-investmentTutors India
We write abstract for your master’s dissertation which would approximately contain 250 to 350 words. We complete the abstract after the full dissertation has been written that includes a brief summary of introduction or background, objectives, boundaries, methodology, the results of the dissertation research, main conclusion that you arrive, and recommendations
We begin a promising new decade on a hopeful note.
To help navigate the road ahead, we present to you our `Investment Outlook 2020’ report. In it, we seek to examine several long-term socio-economic trends alongside our traditional market analysis to showcase important ideas and provide actionable insights. These are complemented, once again this year, by opinions from decision-makers and thought-leaders across different professional arenas.
INDIA-JAPAN ECONOMIC COOPERATION: PROSPECTS AND CHALLENGESRaja Sarkar
India's growing economic might in recent years has seen the country adapting its economic
policy towards several countries to enhance its global influence and status to meet the ever
increasing challenges of the 21st century economy. As a result, India-Japan relations have
undergone a tectonic shift which is directed towards building a strategic and global
partnership between the two countries. India and Japan share a special relationship as
fellow democracies with mutual interests and with a similar desire to seek peaceful
resolutions of conflicts and greater economic engagements in Asia. The signing of the
Indo-Japan Economic Partnership agreement (EPA) in February, 2011 and its subsequent
implementation in August the same year was seen as a major breakthrough in the
economic cooperation between the two countries which could boost bilateral trade and
investment relations between two very large economies in the world. The emergence of
Japan as one of the leading economic powerhouse in the world has been possible due to
intricate planning at economic, political and social levels. The economic development of
any country vis-á-vis the rest of the world depends on a number of factors, such as share in
world trade, finance and investment. Current and future economic and population
dynamics in both the countries mean that India-Japan relations will continue to improve not
just politically but also in economic terms. The present paper will try to find the future
prospects and challenges in the economic cooperation between the two nations.
1) The document discusses the growing influence and engagement of India and China in Africa, describing it as a "new great game" for influence on the continent.
2) It notes that both countries are pursuing stronger economic and political ties with African nations to further their national interests and become major players in Africa's development.
3) India and China are taking different strategic approaches in Africa, with India focusing on capacity building programs in areas like healthcare, education, and infrastructure, while China seeks to secure oil and other natural resources through major investments and loans.
An exploration of the finance growth nexus-long run and causality evidences ...Alexander Decker
This document explores the relationship between financial development and real sector growth in selected countries of the South Asian Association for Regional Cooperation (SAARC) region from 1975 to 2009. It first reviews previous literature on the finance-growth nexus and discusses variables used to measure financial development and real sector growth. The study then presents descriptive statistics and aims to empirically examine whether there is a long-run relationship and causal relationship between financial development and real sector growth in the SAARC countries of Pakistan, India, Nepal and Sri Lanka using cointegration and Granger causality tests.
Shaanxi plays an important role as a new starting point for Silk Road Economic Belt. Based on the
data of joint annual inspection of foreign capital enterprises in Shaanxi province in 2015, 88 Silk Road
enterprises invested in Shaanxi Province were obtained. Starting from the basic situation of these enterprises,
analyzes the source of foreign investment and industry distribution, and the characteristics of Shaanxi foreigninvested enterprise based on input-output theory, input includes the scale and mode of investment, the
employment situation. Output includes revenue and profit, tax situation. And then calculating the score by factor
analysis of the enterprise's comprehensive performance. Through the analysis we found that enterprises invested
by Silk Road Economic Belt in Shaanxi are mostly from European countries, little investment from Asian
countries and no investment from the five Central Asian countries, comprehensive performance of EU countries
is better than that of the Asian countries, the overall profitability of Shaanxi foreign-invested enterprises from
Silk Road Economic Belt is not very ideal, mostly has a poor comprehensive management status.
Chinese economic activities and interests in developing countries have rapidly increased since China's economic reforms in 1978. Chinese firms are now actively investing in Latin America and Africa, challenging American and European companies. This paper examines China's role and interests in developing countries, why it prefers to invest in these regions, and the effects of Chinese economic activities in Latin America and Africa. It finds that China pursues its national interests in developing countries, such as natural resources, to fuel its own economy. While Chinese investment has benefits such as infrastructure development, it is also motivated by accessing resources rather than political solidarity. Chinese firms have also been more successful than Western firms in some developing countries due to their non-interventionist approach and unconditional economic operations.
India’s behaviour towards elimination of trade barriers in south asiaSardar Ahmad
The study focuses on India‘s role in economic cooperation
in South Asia. It explores: what role India has played in
conclusion of different trading arrangements in the region;
and how far India has dispelled the economic concerns of
smaller regional countries (SRCs). India played leading role
in conclusion of SAPTA and SAFTA as well as bilateral
trade arrangements with Bhutan, Bangladesh, Maldives,
Nepal and Sri Lanka. The agreements with Nepal and Sri
Lanka encountered difficulties after showing initial
successes. SRCs including Bangladesh and Pakistan face
obstacles in enhancing their exports to India. New Delhi has
so far not taken enough measures to address the concerns of
the SRCs. The prevailing tariffs, non-tariff and para-tariff
barriers impede access to Indian market for regional
products. The resultant widening trade imbalances strain
relations between India and SRCs and also impede the
development of overall regional cooperation process in
South Asia.
South Asia has high potential for increased intra-regional trade but currently only conducts around 5% of trade within the region. Major challenges include political tensions, infrastructure gaps, trade barriers such as tariffs and non-tariff measures. While organizations like SAARC aim to promote regional cooperation, implementation of agreements like SAFTA has been slow and trade remains below potential. India has been deepening economic ties with its neighbors through various trade agreements but large trade deficits remain. Expanding cross-border infrastructure, streamlining border procedures, harmonizing standards, and further reducing barriers can help South Asian countries realize higher levels of intra-regional trade.
This document provides an overview of the South Asian Association for Regional Cooperation (SAARC). It discusses that SAARC was established in 1985 with 7 founding members and aims to promote economic and regional integration. Key areas of cooperation include agriculture, rural development, health and more. It outlines the principles of SAARC including sovereignty and non-interference. Challenges to SAARC include political tensions between members like India and Pakistan as well as a lack of infrastructure connectivity.
Trade relations between India and Pakistan have been historically significant but currently remain limited. While India granted Pakistan MFN status in 1996, Pakistan has not fully reciprocated. The trade complementarity index shows opportunities for India to engage more with Pakistan. Granting MFN status would deepen economic engagement and reduce costs of informal trade between the countries, benefiting both economies. However, geopolitical tensions continue to hinder closer trade relations despite initiatives like SAFTA.
India looks at regional trading arrangements (RTAs) as “building blocks” towards the overall objective of trade liberalization. Therefore, it is participating in a number of RTAs which include structures such as free trade agreements (FTAs), preferential trade agreements (PTAs), and comprehensive economic cooperation agreements (CECAs).
Free Trade Agreement
A free trade agreement among two countries or group of countries agrees to abolish tariffs, quotas and preferences on most of the goods (if not all) between them. Countries choose an FTA if their economical structures are complementary, not competitive.
India is engaged in several regional trade agreements (RTAs) aimed at liberalizing trade. These include bilateral agreements like the India-ASEAN agreement for trade in services and investment that is scheduled to be signed in 2014. India also has agreements like the Comprehensive Economic Partnership Agreement currently being negotiated with Sri Lanka to expand the existing free trade agreement between the two countries. India is similarly negotiating a Comprehensive Economic Cooperation Agreement with Thailand to build upon their existing framework agreement for free trade. These various RTAs seek to reduce tariffs and barriers to trade in goods, services and investment between the partner countries.
An Analysis of SAFTA in the Context of BangladeshMd. Joynal Abdin
An Analysis of SAFTA in the Context of Bangladesh. In this Working Paper (No. 6 of the Bangladesh Development Research Working Paper Series), Md. Joynal Abdin focuses on a review of the progress made with SAFTA, what Bangladesh’s prospects are in SAFTA, and how SAFTA can be made more active. It provides the historical background about the various initiatives within South Asia, reviews the actual trade data, and reviews the main trade restrictions within SAFTA. It also provides a set of recommendations based on this analysis.
India has pursued closer economic and strategic ties with ASEAN countries through its "Look East" policy since the 1990s. Trade between India and ASEAN has increased significantly, with ASEAN becoming India's 4th largest trading partner. There are many opportunities to further increase economic cooperation between India and ASEAN, such as by increasing investment, tourism, and cooperation in emerging areas. Closer cultural and economic ties between India and Southeast Asia can also help strengthen regional stability and security.
The document summarizes India's strategy to increase exports of marine products by strengthening domestic production capabilities and developing effective marketing arrangements abroad. It notes that India's seafood exports have grown significantly in recent years but could reach over $3.5 billion by 2009 with focus on areas like aquaculture expansion, technology upgrades, and tapping new resources. Major exporting states include Andhra Pradesh, Kerala, Tamil Nadu, and West Bengal, which send products like shrimp, frozen fish, cuttlefish, and squid to over 90 import countries globally.
This book examines India's bilateral and regional economic cooperation. It discusses India's cautious approach to regional cooperation prior to 1991 economic reforms and its current engagement with trading partners through regional trade agreements. A key policy was the 1991 "Look East" policy focusing cooperation with East Asian countries. The book also explores India's involvement in various regional organizations like ASEAN, SAARC, and APEC. It analyzes India's economic relations with major partners like China, Australia, and Singapore. Other topics covered include India's regional trade agreements, its role in the WTO and globalization. The book provides a timely analysis of India's economic and trade relations with countries around the world.
The document discusses the history and objectives of SAARC (South Asian Association for Regional Cooperation). It was established in 1985 by Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka to promote economic and social progress among member countries. The objectives include improving living standards, accelerating economic growth through cooperation, and fostering mutual understanding. Trade among SAARC countries is currently less than 5% of total trade in the region. Efforts are being made to reduce barriers and eventually form a South Asian Economic Union.
TRADE RELATION BETWEEN INDIA AND AUSTRALIA IN GENERAL AND EXPORT OF GOLD FROM...IJCI JOURNAL
Recent years have seen remarkable growth in the trading relationship between India and Australia, fuelled by the many complementarities between the two economies. Over the past five years, bilateral trade in goods and services has increased by 24 per cent annually to US$16 billion in 2008-09. Two-way investment is also significant, estimated at over US$1.5 billion including portfolio investment in 2008. Against this backdrop, Australia and India agreed in April 2008 to undertake a feasibility study for a possible bilateral free trade agreement (FTA) to explore the scope for building an even stronger economic and trade relationship.1 The feasibility study shows that significant barriers to goods and services trade remain in both countries. An FTA between India and Australia would be expected to address tariff and non-tariff barriers. It would go beyond each country’s commitments in the World Trade Organization (WTO) and cover substantially all trade in goods. Services liberalisation would seek to remove barriers that impose additional costs on exporters and erode competitiveness. A possible FTA would be expected to have substantial services sector coverage. Australia-India investment flows are modest relative to bilateral trade, reflecting both regulatory and other impediments and, to some extent, a lack of awareness of business opportunities in the other country. A possible FTA may address this imbalance by removing – or reducing – existing restrictions in both foreign investment regimes. It could also focus on enhancing transparency and strengthening investment protection mechanisms. A comprehensive FTA offers scope to take the relationship to the next level to the mutual advantage of both economies. It could foster even stronger growth, including through more diverse trade and investment flows. Cooperation, capacity building and exchange of information on other issues such as the protection of intellectual property rights (covering all issues including TRIPS & CBD, and GIs inclusive of non-food GIs), SPS & TBT matters, competition policy and government procurement could also be considered during possible FTA negotiations. In order to make an assessment of the possible trade gains from the proposed FTA, independent economic modelling was commissioned in both the countries for the study. The results provide insights into how an FTA might impact on bilateral trade and investment flows as well as economic welfare. Economic modelling is necessarily based on certain assumptions and the results of the modelling for this study should be regarded as indicative rather than exact estimates. Different economic modelling methods, GTAP-CGE modelling and modelling based on an analysis of complementarily, were used in the study to estimate the welfare gains to both countries.
SAARC is an organization dedicated to economic, technological, social, and cultural development in South Asia. Its eight members are Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, Sri Lanka, and Afghanistan. The organization aims to promote collective self-reliance and improve quality of life through cooperation in 11 areas. However, SAARC has failed to achieve many of its objectives due to its policy of non-interference, political deadlocks between members like India and Pakistan, and geopolitical considerations outweighing cooperation on issues.
SAARC is an organization dedicated to economic, technological, social, and cultural development in South Asia. Its eight members are Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, Sri Lanka, and Afghanistan. The SAARC Secretariat, based in Kathmandu, Nepal, coordinates activities and meetings. Key objectives include promoting regional welfare and economic growth. SAARC has established frameworks like SAPTA and SAFTA to promote regional trade but has faced challenges achieving its goals due to political deadlocks between members like India and Pakistan and the policy of non-interference limiting collective action.
SAARC: Introduction, member states, objectives, principles, Organizational structure, Areas of cooperation, List of SAARC Summits, SAARC Speacilized bodies, Problem, prospects, and Conclusion
SAARC is an intergovernmental organization founded in 1985 to promote economic and social progress in South Asia. It has 8 member countries: Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, Sri Lanka, and Afghanistan. SAARC aims to accelerate economic growth, social progress, and cultural development through cooperation in areas like agriculture, education, and transportation. However, SAARC has struggled to achieve many of its objectives due to political tensions between members like India and Pakistan, as well as a policy of non-interference that limits its ability to address disputes. While agreements like SAFTA aim to boost regional trade, their success in implementation has been limited. Overall, SAARC has had modest achievements but geopol
India’s Trade with GCC in the Age of Covid 19ijtsrd
COVID 19s emergence has tipped the global economic system. Due to the outbreak of COVID 19, the economic structure of the entire planet has been severely destabilized. Global trade has found itself in a perilous position as a result of the lockdown and social distancing measures that have been put in place. It is one of Indias most important trading partners to have a relationship with the Gulf Cooperation Council GCC . Attempts have been made in this paper to explore the pattern and possibilities of Indian trade with countries of the Gulf Cooperation Council GCC in the period of COVID 19. The data from January 2020 to December 2021 was gathered from secondary sources and then analysed. Specifically, this study investigates the impact of the epidemic on Indias aggregate trade with the countries of the Gulf Cooperation Council GCC . These findings indicate that Indias exports to the Gulf Cooperation Council GCC are more negatively affected by COVID 19 restrictions than its exports to the rest of the world. Despite the fact that the Gulf Cooperation Council countries offer India immense opportunity for trade and investment. Faisal Khan | Mohammed Sulaiman "India’s Trade with GCC in the Age of Covid-19" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-7 , December 2022, URL: https://www.ijtsrd.com/papers/ijtsrd52463.pdf Paper URL: https://www.ijtsrd.com/economics/other/52463/india’s-trade-with-gcc-in-the-age-of-covid19/faisal-khan
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Economic interdependence; can trade promote peace between pak and india
1. Strengthening Peace and Cooperation in South Asia:
Incentives and Constraints
62
Economic Interdependence:
Can Trade Promote Peace between Pakistan
and India?1
Dr Manzoor Ahmad Naazer*
Abstract
Trade cooperation and liberalisation has been a
controversial issue in South Asia in general and for India
and Pakistan, in particular. Scholars, economic experts and
leaders of South Asian Countries have generally been
divided on the issue. This paper provides a brief overview of
why this is the case, explores Pakistan‟s apprehensions
towards enhancing trade ties with India and offers prospects
of bilateral trade looking at its potential effects and
challenges for the region.
Key words: Liberalisation, Trade Ties, Indo-Pak, Effects and Challenges.
Introduction
conomic cooperation, trade liberalisation and market integration is
believed to be desirable mainly because of two reasons: 1) economic
benefits; and 2) political benefits. Economically, it is believed that
free trade ensures general prosperity, brings benefits of specialisation,
promotes competition and efficiency, helps avoid adverse effects of
protectionism, promotes international cooperation and contributes to
conflict inhibition. Politically, it is believed that free trade promotes
interdependence between or among states that increases wealth and
prosperity and creates interest groups that serve as peace lobbies because
they do not let their governments opt for war that could harm them
economically. In this background, regional economic cooperation, trade
1
This paper is an extension of Ahmad, M. 2015, „India and South Asian Regionalism: A
Study into India‟s Behaviour towards Elimination of Trade Barriers in South Asia‟, IPRI
Journal, XV, no. 2, Summer), pp. 70–94.
*
The author is Assistant Professor at the Department of Politics & International Relations,
International Islamic University in Islamabad, Pakistan.
E
2. Strengthening Peace and Cooperation in South Asia:
Incentives and Constraints
63
liberalisation and market integration is viewed as a remedy for peace and
prosperity in South Asia.
In case of South Asia in general and India and Pakistan, in particular,
trade cooperation has been a controversial issue. Scholars, economic
experts and leaders of South Asian Countries (SACs) have generally been
divided on the issue. Academia, business community and ruling elites of
smaller regional countries (SRCs), except Sri Lanka, generally oppose
market integration whereas others, mostly from India, support it. There
can be various reasons behind this difference of opinion.
A number of experts oppose trade liberalisation in South Asia
claiming that the region lacks its prerequisites. They suggest that SACs
should rather focus on development and improvement of basic
infrastructure, pursuance of joint development projects, creation of
economic complementarities and mutual interdependence through
regional planning and rationalisation of new industrial structures to ensure
equitable distribution of cooperation gains.
Nevertheless, on insistence of some states, particularly India, South
Asian Association for Regional Cooperation (SAARC) members slowly
moved towards trade liberalisation and agreed on the SAARC Preferential
Trading Arrangement (SAPTA) and South Asian Free Trade Area
(SAFTA) in 1993 and 2004, respectively. Meanwhile, India also signed
bilateral Free Trade Agreements (FTAs) with Sri Lanka, Bhutan and
Nepal and alternative Regional Trade Agreements (RTAs) in South Asia.
This resulted in significant increase in bilateral trade of SACs (Ahmad
2015: 77-78). However, increased trade among SAARC members could
not bring any significant change or rise in the share of overall regional
trade. Share of South Asia‟s regional trade to global trade was about 18
per cent in 1948 (Ahmed and Ghani 2010). Later, it shrank to and
remained at around 4–6 per cent of the global trade. In fact, no significant
changes have been observed in regional trade patterns since the inception
of SAARC.
There is huge potential of trade growth in South Asia. For instance, in
2011, the SAARC Chamber of Commerce and Industries (SCCI) in its
session in Sri Lanka noted that there was an annual regional trade
potential of USD 65 billion in South Asia which could not be realised
mainly due to lack of interconnectivity (Express Tribune 2011). However,
3. Strengthening Peace and Cooperation in South Asia:
Incentives and Constraints
64
there also exist several other reasons of low regional trade profile in South
Asia.
Since the inception of SAARC, regional trade never went beyond 6
per cent and varied significantly for different states. For instance, in 2007,
India‟s regional trade accounted only 2.7 per cent of its overall trade
which was lowest among all SAARC members. It stood at 6.6 per cent for
Pakistan, 9.4 per cent for Bangladesh, 12.2 per cent for Maldives, 18.9 per
cent for Sri Lanka and highest 60.5 per cent for Nepal (Jain and Singh
2009: 82-83).
In the context of regional trade in South Asia, India is the main
trading partner of all other members. Its bilateral trade with Bangladesh,
Nepal and Sri Lanka accounts for 90 per cent of their regional trade. Even
Pakistan‟s regional trade is approximately two-thirds with India. In fact,
regional trade links in South Asia are mainly India‟s bilateral trade
relations with other states. Thus, trade liberalisation in South Asia mainly
means giving market access to India by other countries and the vice versa
(Ibid.: 90).
In this context, it is sensible to focus on Indo-Pakistan trade relations
as peace and prosperity in South Asia is mainly linked with the nature of
relations between these two major states.
Indo–Pakistan Trade Relations
India and Pakistan were highly integrated economically soon after the
Partition but their bilateral disputes, tensions and wars severely
undermined their trade ties. Before Partition, the Indian subcontinent was
a single administrative, economic and political unit and far more
integrated than the current level of European Union (EU). Despite
Partition, economic unity of the region was mainly retained. However,
the currency battle of 1948 and subsequent Indian strive to economically
coerce Pakistan that brought both countries to the verge of a war
undermined their trade ties and sowed the seeds of mistrust between them.
Resultantly, both countries pursued policies aimed at decreasing
dependence on each other through achieving economic self-reliance and
exploring alternative trading partners. 1965 and 1971 wars further
weakened their bilateral trade.
In pursuance of the commitment made in the Simla Accord of 1972,
both countries in their bid to normalise bilateral relations, signed a trade
4. Strengthening Peace and Cooperation in South Asia:
Incentives and Constraints
65
protocol aimed at reviving their trade ties in 1974. In 1986, both states
signed a Memorandum of Understanding (MoU) to allow private sector
trade in 42 selected items (Makeig 1987: 288-290). The process of
improving their trade ties received further momentum in the early 1990s
as both countries along with other SAARC members concluded the
SAARC Preferential Trading Arrangement (SAPTA) and South Asian
Free Trade Area (SAFTA), in 1993 and 2004, respectively. However, the
volume of their bilateral trade was still small. During 1995–2005, the
annual volume of Indo–Pak trade remained less than USD 1 billion and
both countries did not fall in each other‟s lists of top ten trading partners.
Pakistan‟s average share in Indian trade was less than 1 per cent, while
India‟s share in Pakistan‟s trade remained less than 2 per cent (Sayeed
2014). Their bilateral trade increased ten times in 2001 and its volume
reached to about USD 2.7 billion in 2011 (Ibid.: 5-6; Hussain 2010: 19;
Express Tribune 2011; Dawn 2011). Since then, their bilateral trade has
stagnated and even slightly declined after 2013–14 (Taneja, Bimal and
Sivaram 2015).
The future of Indo–Pakistan trade ties seems uncertain due to
several reasons. Improvement in their bilateral trade relations has been
hampered since Modi‟s Bharatiya Janata Party (BJP) came into power in
India in mid-2014. New Delhi derailed the process when it postponed the
foreign secretary level talks between the two states scheduled for August
2014. Since then, Modi‟s government, motivated by international and
domestic political considerations, has increasingly adopted a hostile
posture towards Islamabad that has worsened bilateral ties of the two
states. Meanwhile, the mounting tension and frequent exchange of fire on
the Line of Control (LoC) and working boundary between the two
countries have almost crippled the entire process that had already gone
under regression because of revived militant activities in parts of India and
the resultant Indian aggressive designs.
The latest developments also exposed flaws and weaknesses of the
entire logic of economic integration and trade liberalisation between India
and Pakistan and the relevance of interdependence theory in South Asia.
The Indian reaction after a militant attack on an army camp in Uri sector2
is an eye opener for many who believe that trade ties and economic
2
Editor‟s Note: 12 Indian soldiers were killed in a militant attack in Uri area of
Baramulla district in IOK.
5. Strengthening Peace and Cooperation in South Asia:
Incentives and Constraints
66
interdependence between both countries can ensure peace and stability in
South Asia. It also proved that Pakistan‟s concerns and apprehensions
with regard to enhanced economic ties and trade cooperation with India
are not unfounded or illusionary. In fact, the assertions made by Indian
government officials, national leaders, political parties and media
organisations etc. were quite shocking for many in Pakistan who support
establishment of normal and friendly ties between the two states.
Pakistan’s Apprehensions about Enhancing Trade Ties with India
Pakistan has generally been apprehensive towards promoting trade ties
with India due to economic and political reasons based on these factors:
1. Persistence of Kashmir issue,
2. Concerns over lack of level playing field,
3. Prevalence of trade barriers that impede access to the Indian
market,
4. Fear of economic domination by India, and
5. Fear of political coercion by India.
Pakistan wanted progress on the Kashmir issue and its other
political disputes with India parallel to trade liberalisation. For instance,
even after signing SAFTA, successive Pakistani Prime Ministers stated
that progress on economic cooperation and trade liberalisation with India
would depend on a breakthrough on the Kashmir issue (Hussain 2010:
19). Meanwhile, many in Pakistan strongly believe that trade liberalisation
with India would damage the Kashmir cause and it would mean putting
salt on the injuries of Kashmiri people who are struggling for their right of
self–determination against occupation forces in Indian held Jammu and
Kashmir (IJK).
Pakistan also wants „a level playing field‟ in its economic ties with
India (Andersen 1996: 176). It has expressed concerns about the Indian
government‟s policy of giving subsidies to its domestic producers (Ibid.).
Islamabad has been willing to promote trade with India provided it was
given „a level playing field.‟ However, Aziz (2005) has discussed
concerns about the huge trade imbalance and called for exploring the
factors which impede growth of Pakistani exports to India.
6. Strengthening Peace and Cooperation in South Asia:
Incentives and Constraints
67
Pakistan‟s political parties, business groups and the government
alike have serious worries about the prevailing Non-Tariff Barriers
(NTBs), Para-Tariff Barriers (PTBs), prejudices and Pakistan-phobia
which impedes Pakistan‟s exports to India. Pakistan has identified 27
NTBs which impede exports to India: delay in custom clearance; dispute
over pricing of Pakistani goods to determine duties; strict application of
Indian standardisation laws; and imposition of composite tariffs on textile
exports. Some of the NTBs are related to several rigid rules such as
sanitary requirements for fisheries, livestock and agricultural products,
quality certifications for cement and other products, and regulatory
certificates which give „bureaucracy the leverage to discriminate between
products and countries‟ (Haider 2011; Rana 2011). According to a former
Chairman of Pakistan‟s Export Promotion Bureau, due to delay in
clearance, which sometimes takes 8–9 months, export prices of Pakistani
goods substantially increase and make them less competitive in the Indian
market (Jawad 2011).
India‟s attitude towards removal of NTBs and PTBs has not been
positive. For instance, the Federation of Indian Chambers of Commerce
and Industries (FICCI) claimed that after getting Most Favoured Nation
(MFN) status from India, it was Pakistan‟s responsibility to increase its
exports. However, Pakistan‟s officials and exporters believe that several
NTBs, PTBs and tariff barriers (latter for the agricultural products) deny
Pakistani products access to the Indian market (Sayeed 2014). The leaders
of several industries pointed out that India was protecting its agricultural
sector and Pakistani exporters had to pay 37 per cent tariff instead of 13
per cent – a standard tariff in India (Dawn 2011). Pakistan has raised the
issue of NTBs with New Delhi which, in response, has asked to highlight
„Pakistan-specific‟ NTBs (Rana 2011). In principle, these regulations are
applicable to all countries, but Pakistan‟s exporters complain that they are
often subjected to „arbitrary discrimination based on the regulatory
structure.‟ Allegedly, Indian officials deliberately hold up clearing
Pakistani products and Indian railways delay their deliveries. The high
transaction costs, including strict visa regulations, complex tariff and duty
structures, and customs clearance etc. prevent Pakistani businessmen from
investing in sales and marketing of their products in India (Sayeed 2014).
Trade imbalance between India and Pakistan is a perennial factor
that also reinforces Pakistan‟s fears. New Delhi gave Pakistan MFN status
7. Strengthening Peace and Cooperation in South Asia:
Incentives and Constraints
68
in 1996 and Islamabad has yet to reciprocate. Still Indo-Pakistan trade is
heavily in India‟s favour. For instance, during 2009–10, bilateral trade
was about USD 1.4 billion. Indian exports stood USD 1.2 billion against
its imports worth USD 268 million (Anthony 2011). In 2010, bilateral
trade remained about USD 1.7 billion which included Indian exports
worth USD 1.45 billion against its imports of USD 275 million (Gishkori
and Khan 2011). Pakistan‟s imports from India stood at USD 2 billion
during the year 2010–11, USD 1.5 billion during 2011–12 and USD 2.06
billion during 2012–13.3
During the same financial years, Pakistani
exports to India were worth USD 332 million, USD 397 million and USD
542 million, respectively, showing a huge trade imbalance in favour of
India (High Commission of India n.d.).4
This trade imbalance is due to
prevailing PTBs, NTBs, prejudices and „Pakistan-phobia‟ in India (Jawad
2011). Unless India removes these barriers, trade liberalisation with India
may aggravate the bilateral trade imbalance and severely hurt Pakistani
industries (Khan 2011). Pakistan‟s government believes that trade
liberalisation with India should be parallel to removal of NTBs by New
Delhi (Anthony 2011).
Trade barriers, along with some political factors, have halted
progress on giving India MFN status (or its substitute) by Pakistan. In
order to avoid domestic opposition to the MFN issue, the present
government of Mian Nawaz Sharif decided to grant India Non-
Discriminatory Market Access (NDMA) status on reciprocal basis. In
response, Islamabad wants India to address its economic concerns
particularly those related to market access, including tariffs, NTBs and
PTBs (Rana 2014).
Pakistan has also been fearful of India‟s economic domination. A
section of business groups and right-wing political parties argue that
Pakistan‟s industries, particularly automobiles, pharmaceuticals, light
engineering and steel would be adversely affected due to trade
liberalisation with India (Sayeed 2014).
3
Editor‟s Note: According to the latest figures by the State Bank of Pakistan, imports
from India fell 23 per cent to USD 958 million in 2016.
4
Editor‟s Note: According to the latest figures by the State Bank of Pakistan, Pakistan‟s
exports to India during the July 2016-February 2017 period amounted to approx. USD
286 million. This shows an increase in exports, with decreasing imports during 2016-17.
One reason for improved exports to India has been the high demand for cement in the
region.
8. Strengthening Peace and Cooperation in South Asia:
Incentives and Constraints
69
There is also concern that economic dependence on India would
increase Pakistan‟s political dependence on it which the former could use
to coerce the latter. The fear stems from two factors: unequal distribution
of gains from economic cooperation that would widen trade imbalance
and create an asymmetrical relationship between the two states; and
India‟s inclination to use economic leverage as a tool to coerce Pakistan
politically. These fears are not unfounded as discussed in the next section.
In the context of prevailing regional trading patterns – largely in
India‟s advantage at the expense of others – the smaller states also fear
that increased, unregulated and unbalanced trade would result in their
permanent economic dependence on India. Due to the latter‟s hegemonic
ambitions, they fear that this „gradual and one-sided economic
dependence‟ will culminate in their political dependence on India as well
(Hussain 2003). So too, Islamabad has not increased trade links with New
Delhi and become economically dependent on it which could be used in
the future to „blackmail‟ Pakistan (Makeig 1987: 284).
Prospects of Bilateral Trade: Potential Effects and Challenges
There exists huge potential for bilateral trade between India and Pakistan.
However, experts disagree on the exact statistics of its potential. Some
studies suggest that Indo-Pakistan trade could reach USD 10–15 billion
per annum, thereby, both could gain (Sayeed 2014). Some studies have
also suggested that Indo-Pakistan trade could rise to USD 20 billion, while
another study has even suggested that trade can potentially rise up to USD
40-100 billion, in case both nations pursue normal relations (Khan 2010).
Potential Effects of Trade Liberalisation
The pattern of Indo–Pakistan trade shows that India would gain more from
free trade between them. The data shows that balance of bilateral trade is
tilted in India‟s favour and has increased gradually since the mid-1990s. It
is likely that increased trade between the two could also widen their
bilateral trade imbalance. For instance, a study has suggested that if both
countries gain their trade potential of around USD 20 billion, it would
include over USD 16 billion of Pakistan‟s imports from and its exports of
around USD 4 billion to India (Ahmad 2015:3). Thus, Pakistan would face
a trade balance of about USD 12 billion per annum. Keeping in view the
9. Strengthening Peace and Cooperation in South Asia:
Incentives and Constraints
70
prevailing concerns of smaller regional countries with regard to their huge
trade imbalance with India, it can be inferred such a trade equation
between India and Pakistan would become another source of tension and
establish a deeper asymmetrical relationship that would be highly
detrimental to the latter‟s national interests.
Pakistan‟s past experience with New Delhi and recent assertions of
Indian leadership validate the argument that India would not hesitate to
use economic and trade ties as a tool to coerce Pakistan. Soon after
Pakistan‟s creation, India refused to buy some Pakistani products when
the latter declined to devalue its currency. In 2008, after the Mumbai
incident, some Indian government officials and the business community
supported the idea of inflicting economic pain to Pakistan. Even a report
by the Federation of Indian Chamber of Commerce and Industries
(FICCI), a strong proponent of enhanced Indo-Pak trade ties, had
suggested that the Indian government should take strong economic
measures against Islamabad (FICCI 2011).
In wake of the Uri incident in September 2016, India‟s government
mulled over various options to retaliate and punish Pakistan which also
included an option of degrading economic ties and to thwart the Indus
Waters Treaty of 1960 and to revoke the Most Favoured Nation (MFN)
status extended to Islamabad in 1996. On such occasions, Indian
producers or exporters also refuse to supply products to Pakistan that
demonstrate the fragility of trade ties.
Indo-Pakistan ties, including economic and trade linkages, are
susceptible to political developments and related incidents such as border
tensions, terrorism and uprising in Indian held Jammu and Kashmir. A
single event of violence, terrorism or border skirmishes can derail the
entire process of cooperation which undergoes regression most of the
time. In fact, some of these issues are the by-product of unresolved
political problems, such as the issue of Kashmir. No significant and
sustained progress towards peace and cooperation is possible until and
unless the prevailing political problems are resolved amicably. Their
resolution would create a solid foundation for friendly relations and
promote peace and cooperation in South Asia. Trade and economic
cooperation without resolving core political issues would be susceptible to
tensions, misunderstanding, regression and asymmetrical trade ties may
generate new sources of conflicts in the region.
10. Strengthening Peace and Cooperation in South Asia:
Incentives and Constraints
71
Conclusion
Economic cooperation and trade liberalisation is believed to be good for
various political and economic reasons. It creates interdependence and
inhibits the likelihood of conflict and war. It also increases economic
growth, enhances prosperity and ensures the well-being of consumers.
However, in case of South Asia in general, and Indo-Pakistan relationship
in particular, this theory apparently seems less relevant. The past 70 years
and recent developments in the region generally challenge several
assumptions of interdependence theory and its relevance to South Asian
politics.
Trade between Pakistan and India shows an unbalanced pattern and
is susceptible to various political considerations and events. It is skewed
in India‟s favour and may further widen with an increase in their bilateral
trade. India can use asymmetrical trade relations for its political objectives
detrimental to the national interests of Pakistan. Therefore, trade
liberalisation and market integration needs to be proposed and tackled
cautiously and with wisdom. India‟s behaviour towards Nepal is a living
example. In this regard, Pakistan can learn a lot from its own history as
well as the recent statements of Indian government officials, political
parties, business groups and civil society organisations.
References
Ahmad, M. 2015, „India and South Asian Regionalism: A Study into
India‟s Behaviour towards Elimination of Trade Barriers in South Asia‟,
IPRI Journal, vol. XV, no. 2, Summer), pp. 70–94.
Ahmad, M. 2015, „Pakistan India Trade – Opportunities and Challenges‟,
IPS Brief, July, Islamabad: Institute of Policy Reforms.
Ahmed, S. and Ghani, E. 2010, „Making Regional Cooperation Work for
South Asia‟s Poor‟, in eds. Sadiq Ahmed, Saman Kelegama and Ejaz
Ghani, Promoting Economic Cooperation in South Asia: Beyond SAFTA,
Washington, D.C.: The World Bank,
<http://siteresources.worldbank.org/SOUTHASIAEXT/Resources/223546
-1192413140459/4281804-1192413178157/4281806-1265938468438/
BeyondSAFTAFeb2010FullText.pdf>.
11. Strengthening Peace and Cooperation in South Asia:
Incentives and Constraints
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