The Hindu : Front Page : Cross-LoC trade with Pakistan soon

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Tuesday, Sep 23, 2008
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Cross-LoC trade with Pakistan soon

Sandeep Dikshit

Officials shortlist items

Announcement can be made during Manmohan-Zardari meeting in U.S.
There will be zero-tariff trade on items produced in both regions

NEW DELHI: India and Pakistan on Monday finalised the modalities of the cross-Line of Control trade and an announcement could be made during the meeting between Prime Minister Manmohan Singh and Pakistan President Asif Ali Zardari in New York later this week, official sources said.

The decision to go ahead with trade between the regions divided by the LoC was taken at a meeting of the Joint Working Group on Cross-LoC confidence-building measures (CBMs). Zero-tariff trade of items produced in both regions will be conducted on the Srinagar-Muzaffarabad and Poonch-Rawalkot routes. The Kargil-Skardu route could be added later.

The officials finalised a short list of items that would be traded but declined to give details. “We have finalised the modalities and will submit it to our principals, our bosses. Hopefully, it will work out,” Pakistan’s Additional Secretary in the Foreign Ministry, Aijaz Ahmed Chowdhury, told journalists after the meeting.

Key issues

According to indications given by the officials, the intention is to start limited trade and expand the list of items after both countries have sorted out issues related to infrastructure such as widening of roads and ensuring that the trade does not extend to products from other parts of the country.

However, India’s hope of having a meeting between businesspersons of both countries to make the cross-LoC trade “meaningful” was belied as Pakistan cancelled their visit to India at the last moment.

However, a delegation from Muzaffarabad in Pakistan-occupied Kashmir may visit Srinagar and Jammu after the date for commencement of trade, anticipated to be October 1, is announced.

India suggested cross-LoC trade in 2005 when the Srinagar-Muzaffarabad bus service was launched and a year later followed up the proposal by suggesting a meeting between businesspersons of the two sides.

Things got moving in July this year when the Foreign Secretaries exchanged lists of commodities with zero-tariff regime and indicated the items either side was willing to receive.

The sources said the Indian Agriculture Ministry, despite enthusiasm from other government departments, was resisting inclusion of fruits and vegetables in the list of tradable items.

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