Cross-loc trade: Challenges and prospects

The India-Pakistan dispute over Kashmir is one of the most intractable disputes in the present day world. It stands unresolved even after more than six decades of partition of the subcontinent. Traditionally, both countries have pursued policies that revolved around their concerns regarding territoriality and sovereignty over Kashmir. However, in the last few years especially after the revival of the Composite Dialogueⁱ Process in 2004, both countries are moving slowly to a people-centric approach encouraging movement of people, goods and ideas across the heavily militarized Line of Control (LoC)ⁱⁱ. One significant development in recent months has been the initiation of Cross LoC trade. This paper deals with the nitty-gritty of Cross LoC trade. It delves into the problems and prospects of conducting this duty free trade. The paper makes a case for expanding the cross-LoC travel and trade since it has the potential to create transformational spaces which will help ease tensions over Kashmir and bring in its people to the centre stage in resolving the Kashmir dispute. Cross LoC travel and trade will eventually contribute to peaceful settlement of the conflict by transforming it from State-centric to people-centric solutions. The paper makes specific recommendations to India and Pakistan on how they can improve trans-LoC interactions.