Peregrine wrote:SSridhar Ji :
Your Post : 30 Sep 2013 14:23
Would it be possible to enumerate the "Trade Benefits" to India if Pakistan Grants "MFN Status" to India?
Personally I think that this "Trade Benefits" are just a lot of "Hype" and no substance, the Pakistanis have to use their Forex Holdings for "Bare Essentials", which for them is Arming Pakistan to the teeth, and not for Commercial Goods.
Peregrine ji,
I cannot enumerate in detail the benefits of MFN. I have my own doubts too because there are various 'tools' available to a country to effectively curtail the MFN status. Besides, there is a SAFTA agreement among SAARC nations that has different provisions etc. So, TSP has enough ammunition to sabotage the MFN status even after granting it under IMF compulsion etc. Knowing the duplicitous and perfidious behaviour of TSP as a nation, it would be surprising only if that country does not sabotage the status after granting it to India.
But, if nothing like that happens, India must surely stand to benefit because India can export machinery, pharmaceuticals, electrical goods, chemicals, tires, automobile spares, high-end jewellery etc. which are some of the items that Pakistan does not produce. OTOH, I cannot think of any worthwhile export items from TSP except terrorism and cement. In the informal trade now, mostly routed through third countries, the trade balance is over 1.5 B USD in favour of India.
Whether TSP would have the money and willingness to pay for the goods imported is another issue.