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by Pakistan) has been substantive, to • Exports allowed No barriers have been
the detriment of actual fiscal trade be- imposed on exports from India to Pakistan
tween the countries. The dwindling
relationship has also negatively im- the political gains by the governments
pacted the socio-cultural exchanges in two countries”, said Bhagwan Bansal,
and healthcare tourism potential in the a prominent ginner of north India.
region. “The lack of improvement in the Arun Jimmy, proprietor of Choice
situation even after the takeover of the Associates, Tripunithura, Ernakulam
new government led by Imran Khan in said that importers like him are in dire
Pakistan, and the impending national straits as they took financial assistance
elections in India, coupled with disrup- from various banks and financial in-
tive action in Kashmir, there seems lit- stitutions for export business. He told
tle scope for improvement in trade and Tehelka, “We import cement from vari-
commerce presently between the two ous countries including Pakistan since
nations,” says Gunbir Singh, Past Chair- the said country is declared as the
man CII Punjab State. Most Friendly Nation (MFN) by India
According to Sucha Singh Gill, a sen- for trade relations in terms of World
ior economist and a former Professor at Trade Organisation guidelines. We are
Punjabi University, Patiala, “Our trade is doing the import of cement from Pa-
surplus with Pakistan. We import more kistan and we had thus placed orders
than what we export. A steep hike in for import of more than 90 containers
import duty will worsen the terms-of- of cement. When the shipment was ef-
trade and will not benefit our country.” fected, the notification no. Cus 50/2017
Enormous pressure from various dated 30.06.2017 for Nil Basic Customs
“People of this region looked forward to Duty was valid and only IGST was pay-
a brighter future with the inauguration able. Payments were effected before
of ICP (Integrated heck Post), in 2012 by 8th February 2019 and containers were
the Union Home Minister P. Chidam- shipped out from Karachi port onto the
bram, as it was expected to boost bi-lat- vessel before 16.02.2019. That means
eral trade. But the flip-flops in the gov- cargo was on the international water to
ernment policies and lack of dialogue India when the notification no. 05/2019 have reached Kochi port, they are bur-
even during the peace years failed to fa- dated 16.2.2019 was issued to increase dened with the liability of 200 per cent
cilitate the trade. An investment worth duty to 200 per cent.” customs duty as per notification. Their
120 crore has been drained in reaping He lamented that as the containers sale was concluded prior to notifica-
tion and the same was in transit when
this was notified. The said notification is
Bilateral trade intended to curtail the business of Paki-
stan but on account of the lack of clar-
ity in Notification No 05/2019-Customs
A World Bank Report in December According to the report, “Paki- dated 16/02/2019, the importers like us
2018, envisaged that trade between stan’s decision of not granting MFN are burdened with excess customs duty.
India and Pakistan can go up to $ 37 status or non-discriminatory ac- The Government should have given
billion from the current $2 billion cess to India was a barrier to trade. leniency on the import cargo, which
if the two neighbours dismantle The preferential access granted by was already concluded/ payment
the artificial barriers like trust Pak on 82 per cent of tariff lines effected/ shipped out from Pakistan
deficit and cumbersome and non- under SAFTA (South Asia Free port on the date of the notification.
transparent non-tariff barriers. Trade Area) was partially blocked The lack of clarity in the notification
The report titled ‘Glass half Full: in case of India because Pakistan is the reason why the higher rate of duty
Promise of Regional Trade in South maintained a negative list of 1209 fell on Exim trade that had been already
Asia’. The lack of trust between the items which could not be imported dispatched from Pakistan even before
two countries, says the report, is the from India. South Asian countries the date of the notification, 16.2.2019.
prime obstacle in harnessing the impose para-tariff which is extra All those affected find it unfair on the
potential of trade. fees or taxes on top of tariffs”. part of Indian Government to impose a
higher rate of duty on the cargo on in-
ternational water destined to India on

Tehelka / 30 april 2019 48 www.Tehelka.com