SBD-3
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This is what is in the media, but if you take a course in international trade, you ll come to know that India has historically been a protectionist economy.Thanks for the informative post but let me see how well you know the trade or framework between India and Pakistan. There was no doubt. It helps to think why China and Pakistan have declared each other MFN then and this contradicts your Namibia logic!
1. India has no barriers of trade specific to Pakistan.
2. Pakistan has non trade and trade barriers directed specifically to India.
3. Pakistan operates a positive list whereas India has a specific negative list applicable to all countries including Pakistan.
4. India is a signatory to SAFTA and so is Pakistan
5. India has implemented SAFTA but Pakistan is yet to reciprocate.
6. India has declared Pakistan as MFN but Pakistan is yet to do it.
7. Over 0.5 trillion dollars of trade is done between India and rest of the world but India Pakistan trade is stuck at 2 billion dollars.
Here is a detailed discussion on Pakistan and India, its a good read on terrif structures for both the countries and trade pattronAlthough India has steadily opened up its economy, its tariffs continue to be high when compared with other countries, and its investment norms are still restrictive. This leads some to see India as a ‘rapid globalizer’ while others still see it as a ‘highly protectionist’ economy.
Till the early 1990s, India was a closed economy: average tariffs exceeded 200 percent, quantitative restrictions on imports were extensive, and there were stringent restrictions on foreign investment. The country began to cautiously reform in the 1990s, liberalizing only under conditions of extreme necessity.
Since that time, trade reforms have produced remarkable results. India’s trade to GDP ratio has increased from 15 percent to 35 percent of GDP between 1990 and 2005, and the economy is now among the fastest growing in the world.
Average non-agricultural tariffs have fallen below 15 percent, quantitative restrictions on imports have been eliminated, and foreign investments norms have been relaxed for a number of sectors.
India however retains its right to protect when need arises. Agricultural tariffs average between 30-40 percent, anti-dumping measures have been liberally used to protect trade, and the country is among the few in the world that continue to ban foreign investment in retail trade. Although this policy has been somewhat relaxed recently, it remains considerably restrictive.
Nonetheless, in recent years, the government’s stand on trade and investment policy has displayed a marked shift from protecting ‘producers’ to benefiting ‘consumers’. This is reflected in its Foreign Trade Policy for 2004/09 which states that, "For India to become a major player in world trade ...we have also to facilitate those imports which are required to stimulate our economy."
India is now aggressively pushing for a more liberal global trade regime, especially in services. It has assumed a leadership role among developing nations in global trade negotiations, and played a critical part in the Doha negotiations.
International Economics & Trade - India: Foreign Trade Policy
http://www.sbp.org.pk/publications/pak-india-trade/Chap_2.pdf