CIAO DATE: 11/03

India-Pakistan Trade: Creating Constituencies for Peace

Kavita Sangani and Teresita Schaffer

The South Asia Monitor
Number 56
March 03, 2003

The Center for Strategic and International Studies

 

Abstract

Bilateral trade between India and Pakistan is extraordinarily low–less than 1 percent of their global trade. Their volatile political relationship has overwhelmed attempts to encourage trade between the two countries, and has also impacted economic integration in the South Asian region as a whole. There are both political and economic obstacles to expanding trade between the two countries. Greater economic co-operation could, however, provide mutual economic benefits, such as lower prices for consumers, much-needed revenue for the governments, and cost-effective gas import to India via Pakistan. Perhaps most importantly, it could generate new linkages between the two business communities, thereby nurturing constituencies for peace in the region.

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