Pakistan ready to normalize trade with India

[Bosonic]

Source: AP

ISLAMABAD (AP) -- Pakistan says it has decided to normalize trade relations with its giant rival and neighbor India.

Information Minister Firdous Ashiq Awan says the Cabinet on Wednesday approved a decision to give India the status of the "Most Favored Nation."

The move is hailed as a positive first step in normalizing diplomatic and other links with India.

The two nuclear-armed countries have fought three wars since they were created in 1947.

Read more: http://hosted.ap.org/dynamic/stories/A/AS_PAKISTAN_INDIA

[pampango]

1. BBC: Pakistan grants India 'most favoured' trade status

Pakistan had previously linked trade liberalisation with India to a resolution of the dispute over Kashmir, over which the nations have fought two wars.

Correspondents say the move is a significant step towards boosting the peace process between the neighbours.

The status typically reduces tariffs and increases import quotas.

Bilateral trade is currently put at about $3bn (£1.87bn) and the two sides agreed at a recent meeting in Delhi to double that within three years.

http://www.bbc.co.uk/news/world-asia-15553636

Let's hope this normalizing of relations is not the signal for a terrorist attack to rile things up.

[nyy1998]

2. A good sign, but still a long way to go. nt

[closeupready]

3. Good. Glad to hear it.

K&R

[Nancy Waterman]

4. This is very good news

If the trend continues it removes a very destabilizing situation from an unstable area.

[pampango]

5. NYT: Pakistan-India Trade to Benefit Consumers

Pakistan’s decision to normalize trade relations with India could be a boon to consumers and, over time, might help improve political relations between the countries and provide a boost to the struggling Pakistani economy, analysts said.

Pakistan’s information minister said Wednesday the country would grant India “most-favored nation” status, meaning that Indian exports would be treated as equal to those from Pakistan’s other trading partners. Currently, Pakistan allows fewer than 2,000 types of Indian products to cross the border. For its part, India granted Pakistan most-favored-nation status in 1996.

Wednesday’s announcement was cheered in New Delhi, which has complained for years that Pakistan was refusing to honor the country’s commitments as a member of the World Trade Organization or to fully implement the 2004 South Asian Free Trade Agreement.

“This is just wonderful,” said Rajiv Kumar, secretary general of the Federation of Indian Chambers of Commerce in New Delhi. “We should now immediately reciprocate, in more than commensurate manner, on our non-tariff barriers and our visa restrictions.”

http://india.blogs.nytimes.com/2011/11/03/pakistan-india-trade-to-benefit-consumers/

[samsingh]

6. can't trust pakistan