Business Daily from THE HINDU group of publications Friday, Nov 07, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
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Life
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Foreign Trade When biz crosses over
There were emotional scenes when the first truck crossed the Aman Setu (peace bridge) into Kashmir from the other side.
Finding a way: Goods-laden trucks proceed from Jammu and Kashmir towards PoK. Haroon Mirani After a gap of 61 years, trucks rolled again on the 170-km Srinagar-Muzaffarabad highway, giving Kashmiris what they have been demanding all these decades. The border town of Uri was decorated and traditional music bands played to mark the importance of the day — October 21, which incidentally also happened to be the day on which six decades ago the road was closed on the eve of the first Indo-Pak war. The resumption of trade has become possible following improved relations between India and Pakistan and a decrease in violence in Kashmir. As a major confidence-building measure, India and Pakistan allowed trade to resume from two checkpoints — Srinagar-Muzaffarabad and Poonch-Rawalakot road — across the LoC. There were emotional scenes when the first truck crossed the Aman Setu (peace bridge) into Kashmir from the PoK (Pakistan-occupied Kashmir) side. Thousands of people, including schoolchildren and various businessmen, had gathered to witness the historic occasion. ‘Trade zindabad’
The reopened trade has met the longstanding demand of the people in Kashmir valley who have felt vulnerable with just a single road-link to the rest of the world. This was brought home to them rather harshly during the recent “economic blockade” in the midst of the standoff between Jammu and Kashmir over the Amaranth yatri land issue. People cheered, danced and the air reverberated with shouts of “aar paar tijarat zindabad” (long live cross-border trade) and “long live Kashmir”; 13 Hyundai pickup trucks entered Kashmir carrying Pakistani products such as basmati rice, Peshawari chappals, rock salt and turmeric. The convoy of trucks was flagged off by Jammu and Kashmir Governor N.N. Vohra on the Indian side and PoK Prime Minister Sardar Attique Ahmed Khan on the other side. While Vohra termed the development an “important milestone”, Khan hoped it would lead to regular trade and commerce between the two sides. Upbeat mood“It is a historic day for Kashmir,” said Mubeen Shah, president of the Kashmir Chamber of Commerce and Industry (KCCI). The trade will unite the two Kashmirs and is a step towards removing the psychological barrier created by the feeling that there is only one land route for trading. People were equally enthusiastic on the PoK side when mini-trucks from Srinagar laden with Kashmiri apples, walnuts, almonds and spices drove across the heavily militarised border. The trade is currently limited to 21 locally made or produced commodities cleared by the Commerce Ministry. To start with, trucks with 1.5-tonne capacity will ply across the LoC two days a week on travel permits. The business community on both sides is upbeat about the trade opportunities. Business and peace“There is a lot of trade potential waiting to be exploited between the divided Kashmirs,” says Zulfiqar Abbasi, president of the Muzaffarabad-based Azad Jammu and Kashmir Chamber of Commerce and Industry, who recently led a business delegation from PoK to Jammu and Kashmir. According to KCCI, the LoC trade can help grow exports of Kashmir fruit and handicraft by at least 20 per cent. Kashmiri traders will also gain opportunity to tap the international markets through Pakistan. An added incentive of this trade is that it attracts zero tariff. Traders are vociferously keen that the trade list be expanded to accommodate more items. The Government has relented by promising to review the list every three months. The Jammu Chamber of Commerce and Industry (JCCI) has already proposed the addition of another 19 locally manufactured goods to the list of items. PoK President Raja Zulqarnain Khan has said that cross-LoC trade would not only benefit Kashmiris but also strengthen the ongoing peace process between Pakistan and India. ‘United we trade’The trade has catalysed the unification of the business community across the two Kashmirs. The business chambers at Srinagar, Jammu and Muzaffarabad have together formed the ‘Federation of Jammu and Kashmir Chamber of Commerce and Industry’. The new body is lobbying with both India and Pakistan to remove the roadblocks hampering the development of the region’s trade potential. Ram Sahai Kakkar, president of JCCI said, “The cross-LoC trade should not be merely symbolic and efforts should be made to make it sustentative.” Infrastructure needsA major problem facing traders in Jammu and Kashmir is the absence of a telecommunication link with their compatriots in PoK. This makes it difficult to exchange rates, views, market news and related activities between the two sides. The traders also want courier services and banking transactions between the two sides. The Jammu and Kashmir Bank earlier had two branches in the region that subsequently became PoK. To further expand trade between the two sides, the road and bridge infrastructure must be strengthened to support movement of trucks with 10-15 tonne capacity. The traders are also seeking multiple-entry permits valid for at least six months. With regard to trading currency, traders on both sides have suggested that business could be done both in the dollar and the euro. The resumption of trade has attracted praise from all sections of people. Even separatist leader Mirwaiz Omar Farooq welcomed it saying, “This is the first step towards achieving economic independence for Kashmir.” The decision to open trading is seen by many as attempts by India and Pakistan to create ‘soft borders” in Kashmir, allowing free movement of people and goods. Recalling the heavy protests and loss of life that surrounded the call for opening the Srinagar-Muzaffarabad Road recently, Kashmiris hope that the resumed trading would grow substantially in the coming days without any further loss of life. India in talks with Pak to start cross-border trade India, Pakistan agree on stand on pipeline talks More Stories on : Foreign Trade | Foreign Relations
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