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The author and editor of LC VIEWS was
born in the city of Rawalpindi, which at that time was part of India being
ruled by the British Empire . During the political partition of India in
1947 the city became a part of new country, Pakistan. He, then 2 year old,
migrated to India – born in India, migrated to India how strange it is. He
passed, as his late father told, through Lahore, another city of new country
Pakistan, on way to India. We lived in poverty, in a refugee camp. Ten years
later the author’s wife was born in Amritsar in free India. Amritsar borders
Pakistan. It is very close to Lahore. Amritsar and Lahore now trade with
each other as part of the trade agreement between India and Pakistan. A
biweekly train service links the cities and their traders. Amritsar imports
in particular dry fruit from Pakistan. The author’s wife always buys the
imported dry fruit in Amritsar whenever she visits India.
When the author was
working in a bank in India he had the opportunity to visit the bank’s
Amritsar branch to impart on- the -job training on international banking. He
used the real trade LC and documents received from Pakistan as teaching
aids.
The trade between Amritsar and Lahore
rises or falls depending upon the political situation between India and
Pakistan. The train service between India and Pakistan starts or stops
depending upon the politicians’ mood on either side. When the politicians on
either side trade allegations, the commercial trade stops. When the trade
stops LC use ipso facto stops. When
the political situation again improves trade situation improves. As a result,
the LC prospects brighten again. Right now, the political situation is
good. Trade is good. LC business is good. The UCP knowledge and services of
the LC specialist are now in great use in trade between India and Pakistan.
The Indian subcontinent is the best example of the political impact on
trade and LC businesses. It is the best laboratory to research the impact of
politics on trade. The story of trade between India and Pakistan is the
story of trade rise and fall in the fluctuating political climate.
The trade train may stop
during bad political relations, but the traders’ love either side to trade
does not stop. They keep waiting for train as a trade facility. They keep
waiting for trade opportunities. They keep waiting for improvement in the
political situation. The politicians of India and Pakistan may have love/hate
relations among themselves, but the traders of these countries always love
each other. Amritsar and Lahore share Punjabi culture - the author belongs
to the Punjabi culture. The author’s favorite Pakistani singer was the late
Noor Jahan.
When the author was
working on the faculty of the staff training college of the bank at
Chandigarh, he used to read the popular local daily The Tribune. In this
newspaper the author once wrote “Swiss Banking: Myths and Facts”. The
Tribune on its website sums up the fortunes and misfortunes of the train
link as trade link between Amritsar and Lahore. The train has legendary
trade name: Samjhauta Express.
Www.tribuneindia.com
writes: SAMJHAUTA
EXPRESS, the train of "love and emotions", has been the harbinger of
prosperity for hundreds of small and medium scale importers and exporters
from both India and Pakistan. Formal trade ties were established between the
two countries in 1975 under the Simla Agreement. Indian exporters vied with
the South-East Asian, American and European business communities to sell an
array of items ranging from iron and steel ingots, timber, refrigerators,
scooters, cement and tyres, besides traditional goods like spices, tea,
fresh vegetables, textiles, electrical and electronic goods.
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More than
173 items were listed for trade between the countries. With Zulfiqar Ali
Bhutto in the saddle in Pakistan, the trade ties between the two countries
flourished. However, after the army coup, General Zia-ul-Haq made stringent
laws to curb Indian trade.
When Benazir Bhutto
took over as Prime Minister in the early 80s, the focus again shifted to
India and, later under the SAARC Agreement, trade once again looked up.
India granted Pakistan the "most favored nation" status but Pakistan did not
make a reciprocal gesture. The euphoria over open trade died down soon after
as the fundamentalist elements in Pakistan objected to the free movement of
commodities.
The last three years
have seen an upsurge in trade with the listing of sugar under the OGL (open
general licence) to meet the shortfall in its production. India imported
sugar in huge quantities during 1998-99, besides dry dates and rock salt and
exported soya meal feed, ginger, cardamom, spices, tyres and cement.
Indian
traders feel that they had been able to forge a feeling of trust and faith
with their counterparts in Pakistan. The traders here felt that as Samjhauta
express was the only link to Lahore and other destinations, this train was
their only hope. They all favored the continuation of the train service and
suggested that the police and the Customs should step up their vigil and
foil the bid of some mischievous elements to snap the link that is
beneficial to the people as well as business.
Conclusion
From
the Indian sub-continent case study we conclude the hypothesis that
political climate impacts trade and LC businesses is a proven correct theory.
We conclude with the hope that the political climate will remain favorable
in the sub-continent to nurture trade and development in India and Pakistan.
We wish good Acts of politicians, good Acts of God in the Indian
sub-continent! Live peacefully and let “trade and LC” live successfully.
[Also available
in LC VIEWS Newsletter no. 54 / July 2006]
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