LS polls: Trade through Attari-Wagah border, now a poll plank in Amritsar
Locals say their businesses have been hit after trade between the two countries was halted. (Photo: Sarthak Choudhury)
On the busy streets of Amritsar, the echoes of foreign policy debates have transcended the corridors of power and resonated in the Lok Sabha elections.
“With one of the highest numbers of people emigrating every year, foreign policy is a topic of great importance in the state. However, one aspect of foreign policy has implications for Punjab: trade with Pakistan,” a wholesaler near the Golden Temple puts the gist of the issue.
Since the Pulwama terror attack in 2019, India’s trade with Pakistan has steadily declined. India has revoked Pakistan’s most-favored nation (MFN) status and imposed a 200 percent tariff on Pakistani products.
The situation worsened after Parliament repealed parts of Article 370 and 35(A) of the Constitution.
Pakistan has also had its share of indecisiveness over resuming trade with India. On Pakistan Day, March 23, 2024, Foreign Minister Ishaq Dar announced that the government is “seriously considering” resuming trade ties with India.
Just days later, Foreign Ministry spokesperson Mumtaz Zahra Baloch clarified that such a plan was not under discussion.
The issue of trade ties with Pakistan has become a central issue in the election campaigns in Punjab.
Several candidates, including Bharatiya Janata Party’s Amritsar candidate Taranjit Singh Sandhu, are promising a resumption of trade between India and Pakistan through the Attari-Wagah land route. Sandhu has even proposed Dubai as a transit point for goods to and from Pakistan.
Shiromani Akali Dal’s manifesto also addresses the issue. SAD chief Sukhbir Singh Badal wondered why trade with Pakistan could be allowed through the ports of Gujarat but not through the road network of Punjab.
“We will increase demand for the restoration of international trade with neighboring countries,” he said while releasing the manifesto.
This trade impasse has had a significant impact on the traders of Punjab. “Pakistani suits and salwars had become popular here, especially after Pakistani TV serials gained fame. However, the majority of these items now come through Dubai, increasing the cost of each pack by almost Rs 400. These costs are passed on to the customer, which makes a significant difference for the lower income group,” argues a shopkeeper at Gulati. Creations, a shop in the old city of Amritsar.
Trade with Pakistan continues, albeit with significantly higher transaction costs. “The movement of goods to Pakistan is exclusively via sea routes,” said Nisha Taneja, professor at ICRIER.
“Despite a substantial increase in trade with Pakistan in FY24, the rail and road routes through Atari/Wagah have not been operational since 2019. This has had a direct impact on the trading community in Punjab.”
However, some remain conflicted about the issue. Anil Mehra, president of Karyana Federation and Dry Fruit Commercial Association, noted: “This (trade) was first stopped by Pakistan after the abrogation (of Article 370). After this, India imposed the higher law. For us, the country is a priority. Business is secondary.”
He believes that both India and Pakistan should work together for trade to be beneficial.
“Almost 500 trucks crossed from both sides of the border every day. Besides others, many workers and transport people were also involved. Pakistan would be even more affected than India, because many things are relatively expensive
imports can be made from India,” he adds.
Farmers in the state also believe that resumption of trade ties would be immensely beneficial to the state and the country as a whole. They argue that Punjab, being an agricultural state, would benefit immensely from the trade.
‘You see that Pakistan, Afghanistan and other neighboring countries to our west do not have large areas of fertile land like ours. So if food grain is sent through Attari border, it will be extremely beneficial on both sides… Attari border is about 15 km from here (Amritsar) but we have to send a major portion of our produce to a port in Gujarat , and then it is shipped to these countries.
Moreover, geopolitical tensions have made these sea routes unsafe,” said farmer Gurcharan Singh.
Trade ties with Pakistan have also been a topic of discussion within the sports industry in Jalandhar. While Jalandhar’s sports industry has been reeling from a number of issues, Pakistan’s has seen its stature grow over the years, with the majority of the balls used in the 2022 FIFA World Cup being produced there. A sports retailer in Jalandhar said, “The industry would really get a boost if trade ties resume through the border. Many hockey sticks in Jalandhar came from Pakistan. If we want to make bats from English willows, we can’t. They don’t give the raw material to us. We used to get ready-made bats, which were of good quality, from Pakistan. And they were pretty cheap.”
“I agree that trade with Pakistan should not come at the expense of national security. But the attacks were a long time ago. The next government should explore establishing ties,” he added.
First print: May 27, 2024 | 11:52 PM IST