Why in news?
Cross LoC trade across Uri-Muzaffarabad route resumed this week after it was stopped over 2 weeks ago due to seizure of drugs form a truck.
What is the significance of Cross LOC Trade?
- To ease tensions between India & Pakistan, to promote peace & economic activity in the state of J&K, cross-LoC trade was started in 2008.
- Through not very voluminous in nature, it helped connect the regions of J&K on both sides of the border.
- The trade is through barter exchange & has by far has been a successful initiative.
- The present ruling party of J&K, had promised to support this trade.
- With increasing border tensions, trade across the Poonch-Rawalakot route has been stopped since July.
- The Uri-Muzaffarabad route was also suspended following the recovery of Rs 300 crore worth heroin and brown sugar from a truck coming from PoK.
What are some recent developments concerning cross LoC trade?
- The National Investigation Agency (NIA) began probing the funding patterns of traders due to numerous allegations.
- A joint meeting between officials of both sides was held.
- It was decided that permanent and formalised communication facilities will be set up between the respective trade officers.
- A number of steps have been proposed that could lead to a change in the trading mechanism, based on the ongoing research of Bureau of Research on Industry and Economic Fundamentals (BRIEF).
What are some steps to better this trade?
- Joint Investigation Teams should be set up to investigate cases of narcotic and arms smuggling across the border.
- They should address the root cause of such instances in a speedy and transparent manner and help prevent the victimisation of truck dirvers in future.
- Trade Monitoring Cells should be constituted to keep a check on the traders and trade practices,.
- It should monitor daily trade practices such as registration of traders, invoicing and exchange of goods, trade balancing, etc. to address allegations of hawala money, under-invoicing, and even misrepresentation of goods.
- Trade data and information for each registered trader should be mandatorily recorded in an electronic format and shared with the cell at regular intervals for analysis and other checks.
- Institutionalisation - Traders and chambers on both sides have come up with the idea of a joint chamber, which will have traders of both sides as well as the local chambers of Jammu and Kashmir and the Mirpur Chamber.
- Support from both governments will help create more transparency in transactions and information flow among traders and chambers on across the LoC & within.
- Training - It is important to impart training to LoC traders, with support from excise and security agencies.
- Training sessions should be conducted on the standard operating procedures of this trade as well as established accounting practices such as maintaining balance sheets.
Source: The Hindu
