Columbia International Affairs Online: Working Papers

CIAO DATE: 10/2009

Promoting Cross-LoC Trade in Kashmir

Moeed Yusuf

September 2009

United States Institute of Peace

Abstract

Since 2005, Pakistan and India have pursued out-of-the-box thinking on Kashmir as a way to address tensions over the disputed territory. With neither India nor Pakistan able to impose its preferred solution to the conflict, the impasse in this six-decade-old war has gradually pushed leaders on both sides to show more flexibility in their traditional positions on Kashmir, with both governments endorsing the concept of "making borders irrelevant." One of the most promising developments has been the formation of the Federation of Jammu and Kashmir Chamber of Commerce and Industry (Joint Chamber), the first formal establishment across the "Line of Control," which has the potential to play a central role in future efforts at economic collaboration. Though the Joint Chamber is still in its infancy, and faces many challenges from the Pakistani and Indian governments, a USIP special report outlines how the entity can help resolve tensions by allowing better movement of people, goods and services across the Line of Control. Because steps to implement this approach have been limited thus far, author Moeed Yusuf assesses the Joint Chamber and provides a concrete illustration of the opportunities and challenges of the way forward.