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/