India and Pakistan: Practical Steps, Transformational Benefits

While Washington’s focus on South Asia has recently been consumed by the impending U.S. withdrawal from Afghanistan and the deteriorating situation in Pakistan, something else has been taking place—quietly—between India and Pakistan over the last year that may culminate in an unexpected welcome surprise for the incoming U.S. administration in 2013. If events continue on their present course, India and Pakistan could establish a trade relationship that could usher in a new era of cooperation between the long-time, nuclear-armed rivals.

Since last March, the Indian and Pakistani foreign policy establishments have met numerous times to discuss issues ranging from counterterrorism to counternarcotics and border disputes. However, the issue that holds the most promise for transforming the dynamic between these two countries is trade.