In this Covid-19 era, one hardly hears any good news. The way the pandemic has licked up the global economy is unprecedented in our living memory. In the given backdrop, the recent news about India and Pakistan deciding to honour the Line of Control (LoC) ceasefire of 2003 was indeed a pleasant surprise.
I was hoping that the media would be abuzz with it for long. However, the achievement of those who must have laboured for it strenuously did not get as much appreciation as it deserved. The subsequent decision of the Economic Coordination Committee (ECC) to import cotton and sugar from India is a further encouraging development despite the federal cabinet’s cancellation of the same later.
The cabinet made trade with India conditional upon withdrawing the abrogation of Article 370 which India unilaterally announced on August 5, 2019. It goes without saying that not only the Kashmiris and Pakistan vehemently rejected the abrogation, but a wider section of India also rose against it. It may prove to be of some guidance if we analyse how a few other neighbours have handled their political disputes, when it comes to mutual trade and economics. The most apt example is that of China and Taiwan.
China has never recognised any status of Taiwan other than it being its province. However, it has never really attempted to solve the dispute through physical force, either. Also, for the past many decades, they have excellent economic relations, while maintaining their political stance. Only in 2019, the value of goods’ exports from Taiwan to mainland China and Hong Kong was $132 billion while it met 20% of its import needs from China and Hong Kong. Also, Taiwan’s investment in mainland China exceeds $150 billion.
Similarly, despite the ongoing tensions between India and China, preceded by even a mini-war in 1962, bilateral trade has continued. In 2020, it was valued at $78 billion. Probably, it was business which kept them in check during their recent standoff.