Asserting that its long-held policy on Kashmir is unchanged, the US has suggested that trade, a “win-win” proposition, is a good starting point for the normalisation of ties between India and Pakistan.

“There has not been any change in the long-held US policy that with respect to relations between India and Pakistan, and particularly with respect to issues regarding Kashmir, that it is for India, Pakistan to set the pace, the scope and really the nature of those conversations and that process,” Nisha Desai Biswal, Assistant US Secretary of State for South and Central Asia, told reporters.

“The US supports any improvements in the overall relationship, and we have seen important overtures by both countries towards dialogue,” Biswal said.

“We welcomed the fact that (Pakistan) Prime Minister (Nawaz) Sharif and (Indian) Prime Minister (Manmohan) Singh had a meeting in New York last fall, and we welcome all dialogue and all improvements in that relationship,” she said.

The senior Obama administration official also urged India and Pakistan to work towards improving their bilateral economic and trade co-operation which has the potential to increase to $10 billion in the next few years.

Trade is a good place to start this normalisation, Biswal said.

“Frankly, let me say that a good place to start is on the trade front because it’s a win—win for both countries. I think cross-border trade right now between India and Pakistan is somewhere in the range of dollar two and a half billion,” she said.

“But both sides have seen the potential for that to grow to 10 billion (dollars) easily. And that requires both sides to really come together around these sets of issues,” Biswal said.

“Trade and energy are areas where we think that there is tremendous potential, and we’d love to see more progress,” she said.

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