India-Pakistan Trade Relations: A Case Of Non-Tarrif Barriers

Abstract

Despite having a potential of minimum $ 25 billion a year bilateral trade, India-Pakistan current trade volume is little over $ 2.5 billion a year. Political tension between the two countries is the major hurdle to the minimal trade relations. There are a lot of prospects to increase trade and social contacts between the two countries as both share a long, easy and human friendly terrain at their border. Despite having conducive physical conditions, only couple of routes are used for human and goods exchange. Strict tariff and non-tariff barriers further escalate difficulties in bilateral trade. This article focuses on the non-tariff barriers promulgated by both the states while having bilateral trade. It explains the nature of these nontariff barriers and their implications on India-Pakistan mutual trade. It also discusses the future potential of India-Pakistan trade relations.