Pakistan refuses MFN status to India

[President Camacho]

Bro, isn't this mixing politics with business ? Always something to be avoided ...

If in future we do face a situation with Pakistan and given the current scenario , is quite possible ...ought we to engage in large-scale trade with them ? we may have to cut of trading links in protests or as a diplomatic reply to some of their actions.
It would be the same for them too.

Your concerns are very genuine, and in fact all the countries in the past have taken care that their businesses/trades don't get hurt in the times of war. But if you may acknowledge, it is trade/business/money that requires, and then controls, the wars. The US was against Germany, but American industries profited a lot from Germany during the war itself. The side with stronger economic clout wins.

Anyway, the times are different now, and wars will be fought mostly on economic grounds. It is no use bombing an area or killing some people, or even subjugating them. Best is to use those same people to benefit your own agendas. Pakistan has a big population and it is a big market, whereas, India has stronger and well settled industries. When the trade volume increases, the market, and thus the Pakistanis populace/industries, will start getting dependent on the Indian industries. Hurting India even a little will hit them back harder (They would have thought twice before doing the Mumbai massacre if trade volume were high because this incident would have brought down Karachi SE too).

And ultimately, when that same country becomes economically weaker, its armed forces too will submit to the shrunk budget (something that has been happening in Pakistan already). India's biggest hurdle in this war is of course, the presence of China in Pakistan. And India's sole advantage is the same culture shared by Pakistan. It is better to have your enemy dependent on you than defeat him.

 

[Ultra]

Good move by Pakistan. Pakistan should always avoid becoming economically dependent on India, or, allowing India any kind of economic influence inside Pakistan.

 

[foxhound]

ref:India, Pakistan agree to enhance trade

India, Pakistan agree to enhance trade
Updated at 20:2 PST Thursday, April 28, 2011

ISLAMABAD: India and Pakistan agreed Thursday to set up a joint working group to enhance trade, in a further move designed to ease tensions between the nuclear-armed South Asian rivals, officials said.

A joint statement released by India and Pakistan's top civil servants for commerce said they decided to undertake "new initiatives" to enable the trade of electricity and petroleum products with energy-starved Pakistan.

It was the first such meeting since the 2008 Mumbai attacks in which 10 gunmen killed 166 people, but stopped short of resulting in any concrete policy other than to meet again in New Delhi in September.

India blamed the Mumbai attacks on the Pakistan-based banned Islamist group Lashkar-e-Taiba and suspended a four-year peace process.

But acrimonious ties have started to ease since Indian Prime Minister Manmohan Singh invited his Pakistani counterpart Yousuf Raza Gilani to watch the India-Pakistan World Cup cricket semi-final in northern India last month.

According to media reports in India this week, India plans to export petrol and diesel to Pakistan to help its rival meet massive energy needs and to open up a new market for Indian refiners.

The working group will discuss a cross-border pipeline and will address the route and funding should Pakistan import electricity from across the border, Pakistani commerce secretary Zafar Mahmood told reporters.

India has granted Pakistan the status of "most favoured nation" and in the statement, Pakistan "recognised" that granting equal status to India would help to expand trade relations.

Trade between the neighbours is around $2 billion each year.

The nuclear-armed nations have fought three wars since independence from Britain in 1947, two over the disputed territory of Kashmir.

Indian commerce secretary Rahul Khullar on Wednesday called for a quick turnaround of trade talks after four previous rounds of commerce talks ground to a halt in the wake of the Mumbai attacks.

"This is a process that was interrupted and that must resume and go on. It must acquire significantly fast momentum if only to catch up for the time that we have lost," Khullar said. (AFP)

 

[My-Analogous]

Well practically, Pakistan cannot grant a MFN status to India considering the trade deficit of $900 million annually. To those posters who mistakenly believe that not granting a MFN status to India indicates a slap in the face of India by Pakistan, you are displaying your ignorance in world economic matters.

The $900 million annual deficit in trade between India and Pakistan should be of concern to both countries. These are neighbour states and the current hostilities are hindering a balanced trade agreement between the countries. Both countries need to address the trade imbalance and the joint marketing and trademarking of rice is a step in the right direction. If there was better relationships between these two countries at the time of independence then agreements would be in place for minimal or no trade barriers and this would have resulted in the creation of thousand new industries and jobs in both countries.

Yes this is true way of bussiness

 

[The HBS Guy]

This is good.

Pakistan should not grant us any such status.

We can continue to attack Pakistani trade/businesses through hidden means and always say, "Look we granted you MFN. There's nothing more that we can do. "

...and get back to work,

As it is, we have the whole world to trade with. What serious benefits could Pakistan bring to the table?

 

[blain2]

Only in Pakistan animosity takes precedent over even basic business sense.....

India is enemy country ,blah blah .....why call it Most Favoured Nation ? Absolutely Childish ...

Its not as childish as you think. Its about protecting the local economy, something that is done the world over and something that the Americans complain about all the time with regards to China. There has to be a bi-directional benefit of trade on both sides. If all we are doing is consuming your exports then what is the benefit to us aside from finding cheaper commodity goods? How does that help Pakistan in the long run?

Protectionism is something practiced the world over. Pakistan's case is not unique with regards to its dealings with India.

 

[justanobserver]

Its not as childish as you think. Its about protecting the local economy

Come on !

Is that why you signed a Free Trade Agreement with China ?

 

[JayAtl]

the objective of some here remind me of their military mindset- who in the current financial crisis increased it's budget. Just like USSR vs US... and we all knew how that arms race worked out.

See every economist agrees that opening trade relationships will lead to jobs for both countries, would be an upside and great for each others economy. But Pakistani army and population at large rather prefer keeping the hype of a war going. makes no sense.


Pakistani Parent: Beta come and eat and stop watching the skies
Child: No , what if India comes over with its planes?
Pakistani Parent: Beta, there is no war- if you don't eat you will starve to death
Child: Yeah- but amijan, if there is no war, I'm sure they will find a way to come
Pakistani Parent: that makes no sense

Tombstone: Here lies Abu- he gave up eating in favor of romanticizing of Indo_pak war. Let's call him Shaheen- what a martyr
Pakistani Parent: I'd rather had my son use his common sense...

 

[jayron]

Its not as childish as you think. Its about protecting the local economy, something that is done the world over and something that the Americans complain about all the time with regards to China. There has to be a bi-directional benefit of trade on both sides. If all we are doing is consuming your exports then what is the benefit to us aside from finding cheaper commodity goods? How does that help Pakistan in the long run?

Protectionism is something practiced the world over. Pakistan's case is not unique with regards to its dealings with India.

China is a way bigger threat to your local economy than India. Even powerful economies like US fear the dumping of Chinese goods. How wise is it to give them an FTA by Pakistan?

 

[Abhishek_]

Its not as childish as you think. Its about protecting the local economy, something that is done the world over and something that the Americans complain about all the time with regards to China. There has to be a bi-directional benefit of trade on both sides. If all we are doing is consuming your exports then what is the benefit to us aside from finding cheaper commodity goods? How does that help Pakistan in the long run?

Protectionism is something practiced the world over. Pakistan's case is not unique with regards to its dealings with India.

you're saying this after signing FTA with China, btw your trade imbalance with china is more than $5 billion (compared to Indo-Pak imbalance of $900 million)
ECON 101 will help sir

 

[red_baron]

poor indians...

 

[Abhishek_]

poor indians...

damn straight, those pesky hindoos

 

[Jade]

India should stop asking for MFN status to Pakistan...there are much better things to do

 

[Rafi]

The PRC is a friend and we benefit from her exports, india is the enemy of my race, my land, my religion, my blood, it is our eternal enemy and will remain so. China is investing billions of dollars in all sector's they have just signed a deal to build Lahore's metro, and the military help is without equal.

 

[Gene]

poor indians...

from all the above posts you found out this????