Positive Interconnection between International Trade and International Relations: Example of India and Pakistan

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Positive Interconnection between International Trade and International Relations: Example of India and Pakistan

Does trade reduce conflict, or conflict reduce trade, or both, and why?

It is an open secret that in the 21st century sometimes impossible to avoid war. Where every country is against the war, violence and vehemence, trade comes for help. In international relations, it is worth to mention to establish peace everywhere, because of the consequences of the war are always victims suffers the pain of bereavement. As a spineless and constructive tool, it creates the peace, stability, and constructs trade-relations among different countries. And today, I will talk about the international trade between Pakistan and India to show that trade reduces conflicts. In my humble opinion it renews the relations between countries and encourages the others to do so.

First of all, I want to mention such a term as Independence. Everyone knows that independence reduces the conflicts. If we take an example of USA and China, we will see that they trade with each others for their interest, Pakistan and Iran despite being neighbors, have hard trade-relations that are not good-connected one. Lets agree that exchanging goods is more beneficial than causing and creating the conflicts which can affect bot political and military cooperation. As the liberalism theory says trade is a vital tool for the promotion of peace. Pakistan and India trade example is one of the best examples that show the real importance of trade.

As many sources say, everything started because of Kashmir Issue. Both countries claimed that Kashmir is a part of their territory. As a result, the issue became the cause of the war in 1948, and trade-relations declined by 18-20%, but got improved until 1971. And again, because of the war trade-relations almost were equal to zero.

In fact, that number leaded both countries to sign the agreement in which railway passageways would be constructed for better trade-relations and goods-exchange. A decade later, Indian Prime Minister Vishwanath Pratap Singh visited Pakistan to make an agreement or creating and supporting bus-services between these two countries, and reducing the barriers. In 2004-2007 economic activities like making, providing, purchasing, or selling goods or services between both countries became better only due to agreements and diplomacy. And again, we can state that International Relations and Diplomacy are important parts of our world.

By trade-relations with India Pakistan export to India has increased from $156 million to $2 billion in 2014, which I think a great number for India.

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