A working group set up by India has suggested the creation of a free trade area across the Line of Control (LoC) between the Indian state of Jammu and Kashmir (J&K) and Pakistan-occupied Kashmir (PoK).

The modalities are being worked out by the two sides, according to M Rasgotra who heads the working group. The group submitted its report at the third roundtable conference on Kashmir, in April 2007.

The report said trade and commerce representatives, including chambers of commerce, had already visited the LoC and reported that there was lot of enthusiasm for the opening up of trade and commerce between the two sides.

The group recommended setting up a joint consultative machinery of officials and representatives of commerce from both sides, to resolve any difficulties in the flow of trade.

The list of items for export and import would include handicrafts, fruits, cement, iron, medicines, sugar, basmati rice, machinery and equipment, and other items that are manufactured or assembled by small-scale industries in Jammu and Kashmir, said the report.

The issue of state taxes on goods traded across the LoC may be determined by the state government after due consideration of all aspects, it added.

June 26, 2007