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Trading for Peace in Kashmir 73O 74O 75O 76O 77O Trading for peace in Kashmir 73o 74o 75o 76o 77o Mintaka 37o AFGHANISTAN Pass 37o -- Darkot Khunjerab Pass Pass - Thui- An Pass Batura- Glacier Chumar Ayesha Saeed Khan- Baltit Pass Shandur- Hispar Glacier Pass 36o Jammu 36o Chogo Mt. Godwin CHINA Lungma Austin (K2) Gilgit Biafo 8611m Glacier Glacier Baltoro Glacier Karakoram Pass Trade across the Line of Control (LoC) in Kashmir was Sia La - Chilas Bilafond La Siachen Nanga Astor Glacier resumed in 2008 as a confidence-building measure to Parbat 8126m PAKISTAN Goma Babusar-- develop economic links and development across the border. Pass To date the economic impact of the initiative has been Kel NTR CO OL F LINE O - s a Kargil limited. But concrete cross-border structures have been r D - - Tarbela Muzaffarabad Tithwal Wular Zoji La Dras- established, like the Federation of Jammu and Kashmir Reservoir Sopur Lake Pass Z - Leh Tarbela A Dam Uri N Chakothi S Kashmir K - Joint Chamber of Commerce. A - Haji Pir R Pass P i- M Karu Campbellpore r Titrinot Vale of Anantnag- O Islamabad- - - P U a Kashmir N --- n T Islamabad Mendhar A - j Rawalpindi - I Mendhar a - Banihal N l Pass Cross-border trade has also helped Kashmiri communities to S R Banihal a n Pass Che Mangla g e na- Reservoir b start to rebuild severed relationships across the LoC – although Naushahra- - Mangla Dam New Mirpur- Riasi Munawwarwali- - Jhelum Tawi so far this outcome has been limited by restrictions on movement Chhamb Udhampur Akhnur- International boundary INDIA - b of people across the border, and it is also somewhat coincidental, Provincial boundary - na Gujrat he National capital C Samba- City, town or village since peacebuilding is not a primary objective of the initiative. Major Road Kathua Line of Control as promulgated in the Lesser Road 1972 SIMLA Agreement -- vi Airport Gujranwala Ra Dotted line represents approximately the Line of Control in Jammu and Kashmir agreed upon by India and Pakistan. The final status of Jammu and Kashmir has not been agreed 0 25 50 75 km upon by the parties. The boundaries and names shown on this map do not imply Nevertheless, cross-border trade in Kashmir may ultimately 0 25 50 mi official endorsement or acceptance by the United Nations. have potential to provide an entry point to help build confidence Lahore Amritsar in the India-Pakistan peace process, and to strengthen Map No. 3828, Rev. 14, United Nations. The boundaries and names shown and the designations used on this map Kashmiri capacity to contribute to peacebuilding in Kashmir. do not imply official endorsements or acceptance by the United Nations. Inter- or intra-state conflict? collectively to both administrative zones. This does not The state of Jammu and Kashmir is a disputed territory reflect any political position, but is rather the most popular between India and Pakistan. It is a major cause of the contemporary reference to the area. The term ‘Kashmiri’ antagonistic relationship between the two South Asian nations is used to refer to inhabitants of the region. and has been the source of four wars over the past 63 years. Traditionally the Kashmir conflict has been deemed ‘inter-state’, The erstwhile state of Jammu and Kashmir was predominantly not least by India and Pakistan themselves. Neither New Delhi Muslim, with sizeable Hindu and Buddhist minorities. In nor Islamabad consider residents of the disputed region to be 1948 it was divided between India and Pakistan. Pakistan- protagonists in the conflict system. Both states have claimed administered Jammu and Kashmir (PaJK) is wholly Muslim, to speak on behalf of Kashmiris while largely ignoring their while Indian-administered Jammu and Kashmir (IaJK) is voice and capacity. Kashmiris have not been formal parties to ethnically and religiously heterogeneous. bilateral discussions over the dispute and have had to mount their efforts for resolving the conflict outside of the bilateral PaJK includes territories of Azad Jammu and Kashmir and setup between India and Pakistan. Gilgit-Baltistan from the former state of Jammu and Kashmir. IaJK refers to areas of Jammu, Kashmir valley and Laddakh. Kashmiri peacebuilding has been severely hindered by the Throughout this paper the term ‘Kashmir’ is used to refer enforced restrictions on movement and interaction across the building peace across borders | 81 A delegation of traders from Pakistani Kashmir arrived to a warm reception in Indian Kashmir to hold talks with their counterparts on the Indian side of the de-facto border © TAUSEEF MUSTAFA / AFP / Getty Images LoC separating the two administrative parts of Kashmir. Until Revitalising the economic potential of the region is one of 2005 Kashmiris were unable to travel across the LoC to meet the objectives of the initiative. In IaJK, for example, there is with family and friends. The conflict has prevented meaningful a distinct impression that a fully liberalised trade regime with interaction between Kashmiri communities across the LoC PaJK can have a very positive impact on the local economy. and relationships, and exchange of ideas and perspectives, have suffered. Trade across the LoC also offers a low-cost and high-visibility measure to build confidence in the India-Pakistan peace Cross-LoC trade: building business and peace? process and to create an environment for the governments to Before partition, a trade route had existed from what is now IaJK move beyond stated positions. In official discourse, cross-LoC into mainland Pakistan, via Jammu to Rawalpindi and beyond. trade has been framed as a peacemaking step and marketed This trade route was severed soon after partition as India and as a confidence-building measure. Cross-LoC trade is the only Pakistan launched their military campaign over Kashmir. high profile confidence-building measure between India and Pakistan that has survived the disastrous impact of the Mumbai The massive Kashmir earthquake of 2005 acted as the catalyst attacks in November 2008. for the governments of India and Pakistan to ease restrictions on movement across the LoC, bowing to the demands of many Cross-LoC trade is facilitated by the two governments’ decision Kashmiris. Acting on humanitarian impulses, the governments not to impose trade tariffs on goods. New Delhi and Islamabad agreed to launch a cross-LoC bus service for divided families. have approved a list of 21 items (primary products originating For many Kashmiris this was the first opportunity to meet from the region) for trade across the LoC that are intended to separated relatives since the start of the conflict. The bus service stimulate local economies on both sides. Currently trade takes was widely appreciated in Kashmir and added momentum to places across two routes, Poonch-Rawlakot and Srinagar- calls to allow the resumption of trade across the LoC. Muzaffarabad. In the absence of banking facilities linking the two sides, trade takes place through barter. Consequently, In October 2008, after bilateral negotiations and persistent accurate and reliable figures on the volume of trade across lobbying by Kashmiris from both sides, India and Pakistan the LoC are hard to come by. officially opened the LoC for trade. Cross-LoC trade was set up as a limited trade regime designed to provide opportunities for As described in more detail below, cross-LoC trade has so far economic growth and development for both IaJK and PaJK. had limited impact as a tool for economic development in the 82 | Accord | ISSUE 22 region. However, it has provided some economic benefits, for Intra-Kashmiri relationships example acting as a catalyst for economic invigoration in the established through trade can towns serving as the crossing points for the trade routes, as contractors and labourers have been drawn in to assist the trade be developed into ‘cross-border process, and local properties have been turned into storage partnerships for peace’ and units. Bit by bit, local economies are being strengthened. “ used to build collective Kashmiri The cross-border trade initiative has been supported in peacebuilding capacity” large part by Kashmiris on both sides of the divide. Kashmiri motivations for supporting cross-LoC trade are complex. At The governments of India and Pakistan have adopted an the very basic level, the initiative promised to reunite divided unhelpful attitude on the practical dimensions of trade. Various families and to establish regular contact with Kashmiris on the bureaucratic and logistical hurdles have made trading difficult ‘other’ side. But in practice there has been very little people- and economically unviable. to-people contact, as individuals are not allowed to cross the LoC with trade goods. Rather, trade takes place through As mentioned above, cross-LoC trade currently takes place intermediaries who switch goods at crossing points. indirectly through a primitive barter system of exchange of goods between trading partners. Also, both traders and policy- Kashmiri business communities have made use of the initiative makers lack the foundations of a thorough market analysis that as an opportunity to build cross-border peace constituencies. would enable them to make trade a fully productive initiative. A major development has been the formation of the Federation The lack of reliable market information and related difficulties in of Jammu and Kashmir Joint Chamber of Commerce, the assessing the real impact of trade also make it harder to develop first official cross-LoC institution. The respective trade and peacebuilding strategies in tandem with the trade effort. commerce chambers from Muzaffarabad (capital of PaJK) and Srinagar (capital of IaJK) assumed an active leadership role in The peacebuilding rationale behind cross-LoC trade has failed finalising modalities for cross-LoC trade. This relationship was to coalesce coherently. Both official and informal discourses on formalised in the Joint Chamber, which now leads on cross-LoC cross-LoC trade include somewhat arbitrary references to the trade and uniquely connects Kashmiri civil society and traders trade regime ‘bringing Kashmiris closer together’ or ‘helping to to governmental apparatuses on both sides.
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