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Pakistan’s MFN Status to India; Who Will Gain Out of This?

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Pakistan's MFN Status to India, Wagah Border

India and Pakistan at Wagah Border. ‘
Photo taken by Kamran Ali

India and Pakistan are the two countries which are involved in regular trade with the world. But when it comes to the neighbourhood, they are hardly maintaining any business relationship with each other. Many times the idea of starting free trade between the two neighbours was discussed. Pakistan had its own ups and downs in declaring India as its most favoured nation, but now the discussion is more about who among India and Pakistan will be benefited more if Pakistan gives Most Favoured Nation status to India.

Do you think Pakistan should give India MFN Status?

India and Pakistan, known in the world as major nuclear rival neighbours, always had tensed relations. Within this rivalry many steps towards peace were taken, some of which were successful and some eventually failed. The dialogues between two nations had almost stopped when Pakistan’s terrorist organization’s involvement in November 2008 Mumbai attacks came in the picture. India maintained a no dialogue policy until Pakistan would take action against the culprits of Mumbai attack.

It was in July 2009 amidst the tourist season when regular tourists from around the world were coming to Egypt  in full flow, diving in Sharm el Sheikh which is a beautiful tourist destination facing the Red Sea. There were some really interesting developments happening between India and Pakistan. Indian and Pakistani premiers met in Sharm el Sheikh for the first time after Mumbai Attacks. The outcomes of the meeting were lauded in Pakistan, whereas were chided by Indian analysts, but the most important aspect of the meeting was the resumption of the peace process.

While India has given a good reaction prior to the developments in Pakistan about granting MFN status, Pakistan is giving mixed response. There are analysts who think giving MFN to India is a right decision and there are analysts who have censured this step. The main reason of Pakistan for castigating this step is that India has been very strict to Pakistan in terms of providing its market for Pakistani goods.

India had given MFN status to Pakistan as soon as WTO (World Trade Organization) replaced GATT (General Agreement on Tariffs and Trade) in 1995. The MFN rule requires that a WTO member must apply the same conditions on all trade with other WTO members, i.e. a WTO member has to grant the most favorable conditions under which it allows trade in a certain product type to all other WTO members. “Grant someone a special favour and you have to do the same for all other WTO members.”

Even after India giving MFN status to Pakistan, India’s non-tariff barriers, technical, security and custom standards were so strict that Pakistan couldn’t make most out of it. Pakistan on the other hand, which has comparatively less stricter standards, fear that Indian products will burgeon in their markets challenging their local industries if such status is given to India. 

India has complex trade barriers not only for export to India, but also for import from India. Dr. Ashfaq Hassan, Dean of NUST Business School, Pakistan shared his experience when Pakistan imported live animals from India during the shortage of meat in the country. He mentioned that custom office had problem because the animals were not vaccinated, and they had to take the animals all the way back to Delhi to get them vaccinated.

However, Federal Secretary Commerce, Zafar Mehmood, who believes that trade should normalize between the two countries,  maintains that India and Pakistan were trading normally between 1947 to 1965, and Pakistan’s export to India was quite high in number compared to India’s export to Pakistan. Regarding non tariff barriers imposed by India, he said they have been working with Indian establishment and Indian commerce minister to sort out all the issues and doubts which can later be problematic for either Pakistan or India.

To make things easy for Pakistani exporters and to make them understand about Indian custom regulation, Pakistan invited Indian trade regulator officers to give presentation to Pakistani exporters in Lahore and Karachi. Pakistan is also interested in signing three agreements with India, which stress on the delay in customs in India, discrimination in evaluation of Pakistani goods in customs, resolving disputes of exporters/importers, recognition of Pakistan’s internationally credited laboratory and standards institute in India.

One of the most important thing that Pakistan will gain from giving India the MFN status will be reduced importing costs of machinery and machine parts, for example parts of textile machines, rail wheel, sugar mill machinery, and electric power generation machinery, etc which India produces on par or even better than international level. These machinery when Pakistan imports from other countries, often “Made in India” equipment items end up arriving on Pakistani ports. These parts are then not allowed to pass the Pakistani customs. 

This complexity in trade between India and Pakistan has helped trade mafias whose job is to order parts from India in Dubai or Singapore and then remove “Made in India” markings to sell it to Pakistan on higher rates, causing loss to Pakistan’s industries. If trade is normalized between the countries, Pakistan will not only save the transportation cost but will also get rid of these trade mafias who sell the same thing for higher rates.

Moreover, Pakistan’s textile and textile finishing has high appreciation in India and India is considered as great market for textile industry of Pakistan because of the high quality and similar traditions. Another industry which will gain from giving MFN status to India is Pakistan’s Cement industry. Pakistan produces high quality cement in surplus, that is more than what Pakistan needs. Also, while approximate cost of one bag of cement in Lahore is 100 Rupees, the same bag twenty Kilometres across the border in India costs 500 Rupees, this price difference can be utilized by the Pakistani industries for their benefit.

Various analysts in Pakistan believe that Pakistan’s bank sector also has a good opportunity in India. India is believed to be a major market for banks. Many analysts stressed on the fact that international banks are earning more profit from India than from Pakistan.

Pakistan’s restricted trade with India is an international obligation which has to be resolved, there is also a huge number of population (nearly 50%) in Pakistan’s north eastern and eastern areas which borders with India, this population will gain a lot if trade is normalized. These are some of the main reasons why Pakistan government should consider granting India MFN status.

The two countries share almost similar culture, similar dressing style, similar food and similar language, thus there is a huge opportunity for trade among the two. While India is a powerful economy which can threaten Pakistan’s local industry, Pakistan should not forget that India is also a huge market of one billion people from which Pakistani industries can make huge profit.

Sanskar Shrivastava is the founder of international students' journal, The World Reporter. Passionate about dynamic occurrence in geopolitics, Sanskar has been studying and analyzing geopolitcal events from early life. At present, Sanskar is a student at the Russian Centre of Science and Culture and will be moving to Duke University.

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What Every Construction Business Owner Should Be Doing

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As a construction business owner, you have a lot of moving parts to manage on any given day. There are clients to keep happy and workers who need your guidance staying productive and getting the job done right.

You should be focusing your efforts on a few essential areas if you want to run a successful construction business. If you’re not following through with these recommendations, then you risk letting critical details fall off your radar. Take time to evaluate your current practices and what you can be doing differently and in the future to help grow your business and find success.

Researching Equipment Options

Every construction business owner should be researching equipment prices and options. You’re going to need these items for your projects and can’t be worrying about trying to secure them at the last minute. There might also be logistics requirements you’ll want to figure out ahead of time, depending on the scope of the project. Therefore, look into what products and services the Freo Group has to offer so you can place your order and prepare yourself for your future assignments.

Documenting Project Details

It’s a wise idea to put all you discuss with clients in writing. There will be fewer questions and less confusion when you record the project details for all to see and review. Contracts are an excellent way to ensure that you don’t miss any vital aspects you agreed to and that your clients feel comfortable proceeding with the work. Have a timeline you can follow to help you stay on track with deadlines and inform your customer of any setbacks or delays in your work along the way.

Marketing Your Business Aggressively

Furthermore, every construction business owner should be marketing their business aggressively. If you’re going to be around for years to come, then you need clients who are willing to hire you. You’ll be able to stand apart from your competitors when you use creative marketing tactics and make a name for yourself in your community. Get out and meet people and answer questions that potential customers have for you.

Maintaining A Portfolio

You can also attract clients and drum up more interest in your construction business by having a portfolio of your work. Launch a website that includes these examples and carry an iPad around with you to your appointments so you can show potential clients your past jobs. You want people to see the type of results they should expect when hiring you for a project. It’ll also help them brainstorm ideas of what they might want their final output to look like in the end.

Focusing on Safety

The safety of your workers should be a top priority for you when you work in the construction business. Every owner should be training new employees and ensuring each person wears the right safety hat and equipment when working on the job. Be available and on-site so that your employees can ask you questions when they have them, and you can offer suggestions for improving safety measures, depending on the type of project.

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Dal-Tile and Mohawke Industries involved in legal conflicts in Mexico

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Mohawk Industries Inc., together with Dal-Tile International Inc. (Dal-Tile), have had legal conflicts with the Mexican company Internacional de Cerámica SAB de CV (Interceramic) for several years due to Dal-Tile’s attempt to liquidate the company. Recubrimientos Interceramic SA from C.V. (Coatings), as well as to close the plant that operates in Mexico of said company.

Dal- Tile, and Interceramic are partners in the company Recubrimientos, so the Mexican company did not agree with the liquidation or the closure of the plant. Against this background, the Mohawke Industries subsidiary initiated an international arbitration in the city of Houston, Texas, without respecting the statutes of the association it maintained with Interceramic or the Mexican legislation applicable to this case.

Through legal remedies and lawsuits promoted in Mexican courts, Interceramic managed to suspend the arbitration requested by the U.S. firm.

However, the Mexican company alleges that through illegal resolutions issued by judicial and federal officials, which were allegedly corrupted by Dal-Tile, the process resumed.

Derived from the above, on November 20, 2019, Interceramic filed a criminal complaint with the Attorney General’s Office, against the 10th Judge of the Matilde District of Carmen González Barbosa and of the Judges Ignacio Cuenca Zamora and José de Jesús González Ruiz, officials based in the city of Chihuahua, located in northern Mexico, for possible corruption, influence, and bribery offenses.

The accused officials issued illicit resolutions. They arbitrarily and illegally granted inadmissible and illegal protection in favor of Dal-Tile. They are violating the elementary principles of the amparo, jurisprudence and the Constitution itself. It is only explainable that occurred under the commission of the crimes of corruption and trafficking influences. This will be the subject of a criminal investigation by the Treasury so that the necessary evidence is collected to bring the case before a Criminal Judge Federal.

Similarly, the Attorney General’s Office was requested to investigate the existence of a family network within the Federal Courts and Tribunals based in the city of Chihuahua. In which through the imputed magistrates Ignacio Cuenca Zamora and José by Jesús González Ruiz, the District Judges, and other Magistrates can be lobbied, managed or pressured so that through some payment favorable rulings are obtained. 

Proof of this is that the defendants have placed direct family members in positions of other Magistrates through the traffic of influences and/or pressures exerted by their high positions. They have children within courts of the same circuit whose names are Alezith and Arístedes, both with the last name González Ruiz, as well as Ignacio Cuenca Roldán.

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High-Performing Stocks of 2020

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In today’s chaotic markets, it can be difficult to know which stocks and investments are going to make the best, and safest, returns. There’s a myriad of different options and investment strategies. This can make it difficult for the average investor to know what choices he or she should decide on. However, the online realm makes it easy for us to weigh the various potential risks and benefits of every stock on the market. Below are the top seven stocks that may be worth looking out for in the coming year.

Marijuana Stocks 2020

In today’s competitive markets, there are few stocks that have as much of a return, and are as stable, as medical marijuana. The medical marijuana industry, due to government regulation, maintains impeccably high product quality standards, and along with that has not only a completely stable, but also a constantly growing, consumer base. 

Investors want to know the best medical marijuana stocks 2020. One of these stock picks is Aphria (APHA). Based in Canada, Aphria not only sells in it’s home country but also internationally and online, giving it a wide net for potential customers. With annual sales of 179.29 million, Aphria’s revenue shot up 848.1% in October 2019 compared to the same quarter last year. Another potentially lucrative marijuana stock pick is Cannabics Pharmaceuticals (CNBX). Rather than medical sales, this company focuses on biotechnology and cannabinoid research, producing high-quality treatments for cancer patients, among other things. Although the customer base may not be as wide, their state-of-the-art research and developments will be a driving force in the future of the industry.

Investing In The Market While You’re Young

The link above provides many helpful insights into investment strategies and tips for younger investors. Even for those who aren’t as young, there are some incredibly rewarding stock options that provide stable and long-term investment growth preparing you for your future and retirement. Options like Corning Inc. (GLW), Alibaba (BABA), and Deere & Co. (DE), are all stocks that have strong histories of producing returns. Along with this, they offer stable markets and truly are business giants that have been around for long periods of time; they aren’t going anywhere. Although they may not earn as large of returns as some higher-risk stocks, they provide an investment portfolio with excellent stability, as well as a wide range of markets and industries, bringing extreme diversification and balance.

3D Printing: Industry of the Future

Although more high-risk than the previously mentioned options, the 3D printing industry truly is an innovative and growing market that will provide extreme rewards and growth in the years to come. Some of the best stocks in this market include 3D Systems (DDD) and Materialise (MTLS). With a combined market cap of over $2 billion, these companies provide incredible returns, as well as some stability, which is hard to find for an industry that has taken off so recently. 

3D Systems has been around for years, and it’s one of the most stable 3D printing industry stocks on the market. It doesn’t earn as much return year-to-year as some riskier start-ups; however, it’s proven track record provides some safety in a more turbulent industry. With a projected EPS growth over the next 5 years of 63.9%, 

Materialise has a projected one-year return of about 35.4%, which is a remarkable return rate. Although more high-risk than some other 3D printing stocks, the returns on this business can far outweigh the risks, especially if you have other diversified options within your portfolio. Along with these, there are many other 3D stocks that provide incredible growth and it’s an industry that will shape the future of our world.

These, of course, are only a few of the many options within these industries and niches, and it’s advisable to do your own research and evaluation as to what fits best within your portfolio and growth plan. However, these seven picks can and will provide a stable and grounded portfolio base as well as an opportunity for more drastic and meaningful returns, providing balance that is much-needed in the world of investing. If you’re looking to diversify your portfolio, but still maintain high rates of return, these seven picks may be for you.

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