Fifth round of talks between the Commerce Secretaries of India and Pakistan has just ended in Islamabad. It has been agreed to hold the sixth round in April 2013 in New Delhi. Judged by normal standards, talks on trade and commerce between the two countries have shown steady progress. It speaks for good understanding and positive approach of both sides to carry forward a mission considered of crucial importance to building confidence between the two countries. The talks are being held in very friendly atmosphere and with all seriousness. Above all the sense of justice and equitable terms of business are making it possible for the talks to succeed. It has to be remembered that conduct of bilateral trade and commerce between two countries is always a complicated matter and involves fulfilment of many pre-requisites and has to meet the stipulated criteria. A number of hurdles need to be overcome and many bottlenecks cleared. These pertain to international norms of trade and commerce between two or more countries. It is not exclusive to India and Pakistan; the two countries are proceeding according to internationally recognised procedures.
The success of trade talks is to be measured in the decision of the sides to form working groups on various aspects of relationship that will discuss and finalize modalities. Even the time frame for the working groups to meet has also been fixed. Obviously these working groups will be submitting their reports within specified time and the first report is likely to be submitted to the joint meeting of Commerce Secretaries scheduled for April 2013. The recently held meeting of Commerce Secretaries discussed various issues which would be required to be in place if expansion of trade, commerce, tourism and transportation of goods is aimed at.
Road, rail and air services are the means of carrying trade with Pakistan. At present there are many limitations which need to be removed if the quantum of trade is to be increased. Railway link is considered economical as well as efficient enough to give desired boost to bilateral trade. The working group will discuss possibilities of upgrading trade through railway services. It implies many things like upgrading of the load capacity of wagons, creation of ware houses and storage facilities, quick customs clearance and delivery etc. Another important matter is certification of standards on transacted goods. Both countries have the mechanisms of standards and these have to be implemented.
The meeting of Commerce Ministers took up the case of air connectivity between the two countries and it was observed that despite India having as many as 23 flights a day to SAARC capitals, there was no direct air link between New Delhi and Islamabad. The meeting decided to direct the respective authorities to arrange their meetings to discuss the modalities of establishing air link between the two capitals. Along with that improvement of courier service was also discussed and decided to be pushed at proper quarters. Likewise telecommunication connectivity and improvement of banking facilities were also brought under discussion. An important decision taken by the two sides is about forming a Joint Business Council (JBC) as an additional institutional framework for regular and sustained dialogue between the business communities. India and Pakistan agreed to exchange names of 10 prominent business persons from each country for the purpose within a month. The endeavour would be to have a first meeting of this JBC before December and its recommendations would be duly considered for taking forward the ongoing trade and investment dialogue. The JBC would also explore measures for increasing other related activities between the people of both countries. Both sides reiterated their desire to conform to the norms of trade set forth by SAFTA so that the endeavours of SAARC become fruitful.
Looking from historical and political perspective, we find that this is one field in which the two countries have succeeded in overcoming acute sensitivities that have distanced them from one another in the past. Many unfounded suspicions and doubts and many misunderstandings have bedevilled their relationship. The two Commerce Secretaries deserve to be congratulated for carrying on trade talks smoothly and with understanding. Hurdles can be overcome by discussing them and by proposing constructive solutions. We support the pattern of mutual dialogue carried forward by the two sides in respect of trade and commerce. Pakistan is finally going to grant India Most Favoured Nation status in December 2012, just a couple of months later. This will further strengthen good and friendly trade relations between the two countries. Ultimately efforts made in this area could become the beacon light for the two countries to give completely new and healthy shape to bilateral relations. Cooperation and collaboration between the two countries would have great impact on the entire politics and strategies of the South Asian region.
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