期刊名称：International Journal of Business and Management
印刷版ISSN：1833-3850
电子版ISSN：1833-8119
出版年度：2011
卷号：6
期号：5
页码：171
DOI：10.5539/ijbm.v6n5p171
出版社：Canadian Center of Science and Education
摘要：This research investigates the welfare effect of economic costs and benefits of Pak-India trade with exporting dried dates. The first scenario is when normal trading relation with India will be restored. It means that both countries will give the MFN status to each other. in the second scenario, the SAFA will be operative and there will be free trade between India and Pakistan and both countries will remora all tariffs and custom duties from each other's imports. After employing the simplified static analysis framework, the analysis based on simulations reveals that current demand for Khairpur dates will expand after the FTA and consumer surplus will increase. The drop in the domestic prices of dates will increase the production of many down stream industries, which will have pleasant multiplier effects on the economy. Overview of dates industry and results of economic analysis indicate that Pakistan will get benefit from the FTA by getting the cheaper labor for which will increase their competitiveness, and to reduce the costs of trade diversion in some commodities, the government should reduce MFN tariffs on industrial dates before implementing the FTA a key rule of multilateral trade system is the reduction in trade barriers should be applied, on a most-favored nation basis (MFN), to all WTO members. The only exception to the MFN principle built into the GATT legal framework is the provision for reciprocal free trade within customs unions and free trade areas (GATT article XXIV) objectives of the present study is to analyze qualitatively and quantify the potential economic cost and benefits of prospective trade between India and Pakistan to consumers, producers and government of the two countries for export of dried date under the following two scenarios, i.e, when normal trading relations between Pakistan and India will be restored and when there will be a free trade between Pakistan and India in the presence of South Asian Free Trade Agreement (SAFTA). Following the analytical framework discussed by PO managerial (20001), we employ the simplified static analysis for individual industries to instigate the welfare gains or losses.
