The Hindu Business Line : India, Pak exchange list of items for trading across LoC

LoC, Kargil, Aug. 26 India and Pakistan have exchanged the lists of items they would trade in across the Line of Control (LoC) as part of the confidence-building measures by leaders of the both the countries under the larger composite dialogue.

The Minister of State for Commerce, Mr Jairam Ramesh, who has been in Leh and Kargil and to the LoC here told Business Line that while the Indian side had forwarded a list of 10 items, the Pakistani side came out with 16 items to be gin with.

Among the items India wants to trade across the LoC with Pakistan is carpets, rugs, wall hangings, paper mache, embroidery, shawl including pashmina, tapestry, cricket bats, furniture and other wooden items, silk and silk products, kashmiri fruits, dry fruits (almonds, walnuts), Kashmiri spices, flower, Kashmiri saffron, Kashmiri wazwan, aromatic plants, medicinal plants, fruit-bearing plants and dhania, moong, rice, basmati, spices of all kind, imli , black mushroom and green tea (North).

Among the items Islamabad forwarded to India to trade across the LoC is spices, apples, walnut, rice, precious stones, paper mache powder, gabbas and nawdas (carpet cloth material), furniture, marble, onion, garli c, medicinal herbs, embroidered items, pine nuts (chilgoza) and carpets.

Revenue implications

While both the External Affairs Ministry and the Commerce Ministry is keen that the items to be traded across the LoC should be duty-free, the Finance Ministry objects to this due to revenue implications. However, a narrow legalistic view on this should not be taken, Mr Ramesh said, adding that the matter would be resolved at the highest level.

Mr Ramesh said that when the Pakistan Commerce Secretary, Mr Syed Asif Shah, called on him recently, the latter made him understand very categorically that Islamabad was also keen on promoting trade across the LoC. He said that this is one measure that enjoys great support across the political spectrum in Jammu and Kashmir and also in Pakistan.

“Though this will not set the Jhelum on fire, this is a beginning and we can slowly move from border trade at LoC to border trade and then finally we can have an MFN trade,” Mr Ramesh said. He added that infrastructure on both sides is poor and needs to be built.

He said trade across the LoC could follow the pattern of trade between India and China through the Nathu-La pass in Sikkim, where both the countries initially exchanged a list of commodities they would begin trading in.

Trade potential

Referring to his visit to Leh and Kargil, he said that he explored how to use trade as an instrument to integrate the far-flung areas to the mainstream of economic activity by identifying the special products endemic to these places.

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