current affairs MCQ #6977

India and Pakistan explore resuming bilateral trade through the Wagah-Attari crossing. The MOST significant non-tariff barrier that has historically prevented normalisation is which of the following?

current affairs MCQ #6977

  1. Question 1

    Q1. India and Pakistan explore resuming bilateral trade through the Wagah-Attari crossing. The MOST significant non-tariff barrier that has historically prevented normalisation is which of the following?

    • A) Pakistan's WTO commitments prohibit bilateral preferential trade agreements with non-SAARC states
    • B) Linkage of trade normalisation to resolution of political disputes, particularly the Kashmir issue
    • C) Indian goods face constitutional import prohibition under Pakistan's Federal Legislative List
    • D) The Pakistani rupee is not recognised as a convertible currency for bilateral trade settlement

    Answer: Linkage of trade normalisation to resolution of political disputes, particularly the Kashmir issue

    Explanation: The most significant barrier to India-Pakistan trade normalisation has been Pakistan's longstanding policy of linking trade relations to political progress on the Kashmir dispute, which has repeatedly stalled economic engagement even when both sides acknowledge mutual trade benefits.