Wednesday, July 20, 2011

LOC CBMs and peace

·         the two governments have only opened the links and literally left the traders to take on the risks and responsibilities.
·         Trade has continued despite obstacles like strangulating red-tape, the diplomatic stand-offs and the political unrest in the Kashmir Valley.
·         in the two-and-a-half years since cross-LoC trade began between Muzaffarabad-Uri and Poonch-Rawalakot, the community of traders has found a way of insulating the process from outside influences with mutual trust
·         Presently, trade takes place twice a week on a barter basis in the absence of banking facilities to transfer funds across the LoC, and is restricted to certain  items.
·         Traders from the two sides cannot meet, making the prevalent regime a ‘blind trade' system in which the trader has no way of assessing the market
·         No banking facilities
·         No modern facilities at check posts for unloading , checking etc
·         Traders not allowed across borders leading to blind trade
·         banking facilities an
·          trade list to cover all items manufactured or produced in the two parts of Kashmir,
·         doubling the number of trading days,
·          allowing trucks
·         opening additional routes

Indian government's measures to boost trade:
1. its willing to increase the trade points from 2 to 5
2. it has identified JK bank to provide banking services
3. it supports expanding the trade list but with stringent checks to ensure no outsiders benefit from duty free trade
4. has unilaterlally offered to extend stay period for people from PoK visiting JK from 4 weeks to 6 months

Pakistan response
pakistan has not reciprocated
it is worried that increased trade will weaken its case on kashmir issue

Trade and peace
Ever since CBMs have been launched Azad kashmir has seen development
it has enlarged the opportunity for a peaceful and stable kashmir

with inputs from wikiias

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