Some Pakistani industries view India trade with alarm.

[SBD-3]

Thanks for the informative post but let me see how well you know the trade or framework between India and Pakistan. There was no doubt. It helps to think why China and Pakistan have declared each other MFN then and this contradicts your Namibia logic!

1. India has no barriers of trade specific to Pakistan.
2. Pakistan has non trade and trade barriers directed specifically to India.
3. Pakistan operates a positive list whereas India has a specific negative list applicable to all countries including Pakistan.
4. India is a signatory to SAFTA and so is Pakistan
5. India has implemented SAFTA but Pakistan is yet to reciprocate.
6. India has declared Pakistan as MFN but Pakistan is yet to do it.
7. Over 0.5 trillion dollars of trade is done between India and rest of the world but India Pakistan trade is stuck at 2 billion dollars.

This is what is in the media, but if you take a course in international trade, you ll come to know that India has historically been a protectionist economy.

Although India has steadily opened up its economy, its tariffs continue to be high when compared with other countries, and its investment norms are still restrictive. This leads some to see India as a ‘rapid globalizer’ while others still see it as a ‘highly protectionist’ economy.

Till the early 1990s, India was a closed economy: average tariffs exceeded 200 percent, quantitative restrictions on imports were extensive, and there were stringent restrictions on foreign investment. The country began to cautiously reform in the 1990s, liberalizing only under conditions of extreme necessity.

Since that time, trade reforms have produced remarkable results. India’s trade to GDP ratio has increased from 15 percent to 35 percent of GDP between 1990 and 2005, and the economy is now among the fastest growing in the world.

Average non-agricultural tariffs have fallen below 15 percent, quantitative restrictions on imports have been eliminated, and foreign investments norms have been relaxed for a number of sectors.

India however retains its right to protect when need arises. Agricultural tariffs average between 30-40 percent, anti-dumping measures have been liberally used to protect trade, and the country is among the few in the world that continue to ban foreign investment in retail trade. Although this policy has been somewhat relaxed recently, it remains considerably restrictive.

Nonetheless, in recent years, the government’s stand on trade and investment policy has displayed a marked shift from protecting ‘producers’ to benefiting ‘consumers’. This is reflected in its Foreign Trade Policy for 2004/09 which states that, "For India to become a major player in world trade ...we have also to facilitate those imports which are required to stimulate our economy."

India is now aggressively pushing for a more liberal global trade regime, especially in services. It has assumed a leadership role among developing nations in global trade negotiations, and played a critical part in the Doha negotiations.

International Economics & Trade - India: Foreign Trade Policy

Here is a detailed discussion on Pakistan and India, its a good read on terrif structures for both the countries and trade pattron
http://www.sbp.org.pk/publications/pak-india-trade/Chap_2.pdf

 

[ramu]

Some of the policies of Pakistan does not make sense. For example, Paksitan knows that 3 to 5 Billion dollars worth of trade between India and Pakistan happens through Dubai. If Pakistan agreed to trade these goods directly, it would be saving millions of dollars and so will India. India is game for direct trade but Pakistan insists on a positive list that excludes many of the goods traded indirectly. Apart from a possibility of corruption or interest lobbies that want Pakistan to route this trade through Dubai, I cannot see a rational reason for lossing millions in taxes.

How I wish Paksitanis addressed this area of common gain by enabling trade between the two countries where everyone except a middle man sitting in Dubai will be in a win - win situation.

 

[ramu]

This is what is in the media, but if you take a course in international trade, you ll come to know that India has historically been a protectionist economy.

Let me tell you that I have not taken a course in international trade. But I have enough experience in this area. India is protecting its interests and so is every other country. You will get your answer why Pakistan is to blame and not India in the curernt context of India-Pakistan trade. Read on.

Here is a detailed discussion on Pakistan and India, its a good read on terrif structures for both the countries and trade pattron
http://www.sbp.org.pk/publications/pak-india-trade/Chap_2.pdf

Let me tell you why your opinion from the outset towards Indian trade abd about Indian tarrifs biased and out of place.

1. India has a trading relation with the world and imports goods worth hundreds of billion.
1. India has a trading relation with the world and exportss goods worth hundreds of billion.
2. India does not have a prefernetial treatment in terms of tariff and trade policy towards Paksitan. What is the policy for the entire world, teh same policy applies to Pakistan.
3. The only place Pakistan gets a preferential teratement is for VISA and this is valid for the genuine security concerns in India.
4. Pakistan is making a dim witted policy in terms of trade specifically through third party because it is importing goods at a higher price than the price at which India can sell.
5. If Indian tarrifs were that high, will Pakistan be willing to pay a higher price over and above the claimed high tarriff by giving a cut to the middle man.

Before you prematurely start googling and trying to argue with me, read my reply clearly. I am telling nothing new. This is the simple truth.

 

[ramu]

Cant go to page 4 of this thread !

 

[Dalai Lama]

Cant go to page 4 of this thread !

Stop using Firefox.

 

[Splurgenxs]

Stop using Firefox.

its not just fire fox ...opera too has this problem. haven't seem to still ascertain its cause.

no problems on crome yet

 

[Splurgenxs]

On topic...Cheap stuff is important for pakistan if it wants its inflation to go down...
In the medium term pakistan will suffer more due to inflation than due to a few sectors suffering.

After all if Pakistani companies have no competition ...how will they improve.

This will also reduce mafias controlling prices ....who may have dealing with manufactures.

 

[SBD-3]

Let me tell you that I have not taken a course in international trade. But I have enough experience in this area. India is protecting its interests and so is every other country. You will get your answer why Pakistan is to blame and not India in the curernt context of India-Pakistan trade. Read on.




Let me tell you why your opinion from the outset towards Indian trade abd about Indian tarrifs biased and out of place.

1. India has a trading relation with the world and imports goods worth hundreds of billion.
1. India has a trading relation with the world and exportss goods worth hundreds of billion.
2. India does not have a prefernetial treatment in terms of tariff and trade policy towards Paksitan. What is the policy for the entire world, teh same policy applies to Pakistan.
3. The only place Pakistan gets a preferential teratement is for VISA and this is valid for the genuine security concerns in India.
4. Pakistan is making a dim witted policy in terms of trade specifically through third party because it is importing goods at a higher price than the price at which India can sell.
5. If Indian tarrifs were that high, will Pakistan be willing to pay a higher price over and above the claimed high tarriff by giving a cut to the middle man.

Before you prematurely start googling and trying to argue with me, read my reply clearly. I am telling nothing new. This is the simple truth.

End of discussion i guess.........Instead of realizing that Pakistan needs not to declare India as MFN, you went into discussion of something broad....I hope the first post should be enough to clear things up..........

 

[SBD-3]

On topic...Cheap stuff is important for pakistan if it wants its inflation to go down...
In the medium term pakistan will suffer more due to inflation than due to a few sectors suffering.

After all if Pakistani companies have no competition ...how will they improve.

This will also reduce mafias controlling prices ....who may have dealing with manufactures.

Ahhhh.....guess everybody can press reply button.....just a point to answer, imports are demands which cant be met by internal resource.....i have given you the start of the roap....try to climb a little to understand what drives imports in the first place.

 

[ramu]

The videos above speak for India.

 

[Faiez]

Some of the policies of Pakistan does not make sense. For example, Paksitan knows that 3 to 5 Billion dollars worth of trade between India and Pakistan happens through Dubai. If Pakistan agreed to trade these goods directly, it would be saving millions of dollars and so will India. India is game for direct trade but Pakistan insists on a positive list that excludes many of the goods traded indirectly. Apart from a possibility of corruption or interest lobbies that want Pakistan to route this trade through Dubai, I cannot see a rational reason for lossing millions in taxes.

How I wish Paksitanis addressed this area of common gain by enabling trade between the two countries where everyone except a middle man sitting in Dubai will be in a win - win situation.

dubai is where the big money is made...

soem time back there was a lot of wheat and sugar trade which even caused a shortage in pakistan...all that happened through dubai...

the reason for that is not the business community, its the general awam which thinks that trading with india is a sin...they forget that our grandparents used to live together in the same society and bought and sold things from/to each other without problem..

 

[BATMAN]

Some of the policies of Pakistan does not make sense. For example, Paksitan knows that 3 to 5 Billion dollars worth of trade between India and Pakistan happens through Dubai. If Pakistan agreed to trade these goods directly, it would be saving millions of dollars and so will India. India is game for direct trade but Pakistan insists on a positive list that excludes many of the goods traded indirectly. Apart from a possibility of corruption or interest lobbies that want Pakistan to route this trade through Dubai, I cannot see a rational reason for lossing millions in taxes.

How I wish Paksitanis addressed this area of common gain by enabling trade between the two countries where everyone except a middle man sitting in Dubai will be in a win - win situation.

Unfortunate but true, the trade is happening through Dubai and since we were talking of pharma... Dubai have recently fined many pharma importers from Pakistan for having wrong info on their import papers.
While the import is not limited to Dubai route, most of it comes without even touching Dubai... and the product area is quite wide.

 

[Rafi]

We need trade with Iran, Turkey and China - not with india, which wants regional hegemony.

 

[Nothing]

We need trade with Iran, Turkey and China - not with india, which wants regional hegemony.

If you consider value of Indian items traded via Dubai and Singapore .. India may be largest trade partner of Pakistan ..

Looks like most of your country is not sharing your view..

 

[Rafi]

If you consider value of Indian items traded via Dubai and Singapore .. India may be largest trade partner of Pakistan ..

Looks like most of your country is not sharing your view..

Speculation, we have a free trade agreement with China which is more beneficial.