Since cross-LoC trade began between Muzaffarabad-Uri and Poonch-Rawalakot, traders have found a way of insulating the process from outside influences with a fair amount of success.
“Both sides agreed to convene a meeting of the Working Group on cross-Line of Control (LoC) Confidence Building Measures (CBMs) to recommend measures for strengthening and streamlining the existing trade and travel arrangements across the LoC and propose modalities for introducing additional Cross-LoC CBMs. The Working Group will meet in July 2011.” (Para 7 of the joint statement issued on June 24 after the Indian and Pakistani Foreign Secretaries met in Islamabad.)
On July 18, the Joint Working Group met in New Delhi and this is what was offered to the public at the end of the day-long interaction: “The meeting was held in a cordial atmosphere. During the meeting, both sides reviewed the existing cross-LoC travel and trade arrangements to ensure their effective implementation and exchanged views on additional measures to facilitate cross-LoC travel and trade.”
Nothing much to write home about. The two governments have done so little to facilitate the Cross-LoC CBMs that the trading community sees only a sliver of hope in the tone and tenor of the two statements. In fact, its general refrain is that the two governments have only opened the links and literally left the traders to take on the risks and responsibilities. And, it has survived despite a strangulating red-tape, the diplomatic stand-off following the Mumbai 2008 terror attacks and the political unrest in the Kashmir Valley.
No doubt, there have been strikes and trade-related issues between traders on both sides, but in the two-and-a-half years since cross-LoC trade began between Muzaffarabad-Uri and Poonch-Rawalakot, the community of traders has found a way of insulating the process from outside influences with a fair amount of success. As one trader said in a recent report on trade across the LoC: “We are insulated by a shield of mutual trust. We have not allowed diplomatic acrobatics between New Delhi and Islamabad to affect us in any manner.”
Presently, trade takes place twice a week on a barter basis in the absence of banking facilities to transfer funds across the LoC, and is restricted to 21 items. Traders from the two sides cannot meet, making the prevalent regime a ‘blind trade’ system in which the trader has no way of assessing the market.