Re: Consequences of Free Trade with India
Obviously there wouldn't be mutual dumping on the same product bilaterally! revealation indeed.
Please don't bother elaborating on the subsidies...I can guess what you're trying to say - the issue is. Ofcourse there will be selective protection in the short term. Very quickly, comparative advantages will become pronounced. There are several mechanisms that go into play - one example - some Indian industry will find cheaper labor in pakistan and move factotries there! or imagine a European or American or Japanese company eyeing the Indian market - if pakistan is significantly cheaper and if the fluency of trade between the neigbors assures them of regional movement of goods, why would they build in expensive NOIDA?
The 3rd one is a difference in goals and it's useless to go through individual industry. It is a question of DO YOU WANT TRADE THAT CAN REDUCE HOSTILITY or DO YOU WANT TO MAINTAIN ENMITY, SO WOULDN"T ALLOW TRADE.
4- Sorry I didn't sense the sarcasm (unless you mean your 1,2,and 3 are sarcastic. In which case I am before a master)