Stop being petty, Delhi

India fears even temporary preferential access to European markets will give Pakistani goods a competitive advantage.

The Indian government’s recent actions regarding Pakistani trade are somewhat confusing. On the one hand is the Indian high commissioner’s speech in Lahore earlier this week where he advocated an expansion of trade ties between India and Pakistan, suggesting that a full-blown effort at regional economic integration be undertaken in South Asia. On the other hand, the Indian government has been lobbying the World Trade Organisation to block the European Union’s (EU) move to grant concessionary trade access to Pakistan. Is India for free trade access for Pakistani goods or against it? It seems difficult to tell.

The reality is that India fears that even temporary preferential access to the European market will give Pakistani goods a competitive advantage over Indian goods and possibly reduce some of the trade between India and the EU. Yet it seems quite unreasonable to argue that since the industries most likely to benefit from the trade agreement are not located in the flood-affected areas, the agreement should be nullified. The Pakistani economy as a whole will benefit from trade access to European markets and the overall prosperity is in the benefit of flood victims, especially since India realises that the EU is not like to give any cash handout out of the fear that it will likely be squandered on corrupt or inefficient aid projects.

Getting the EU to grant preferential trade access in lieu of aid to the flood victims has been one of the few policy successes of the Gilani administration as a response to the flood. To have that taken away due to a grudge held by the Indian government would be unfortunate indeed. India has aspirations to become a regional or even global power. New Delhi would do well to realise that it is often incumbent upon larger states to show magnanimity towards their smaller neighbours. Or, at the very least, not be quite so openly petty.

Published in The Express Tribune, December 6^th, 2010.