India revokes ‘Most Favoured Nation’ status from Pakistan
Read on to find how much it shall affect the neighbouring country
New Delhi: India on Friday revoked the ‘Most Favoured Nation’ or MFN status from Pakistan after a deadly suicide terrorist attack that killed at least 45 CRPF personnel.
An improvised explosive device (IED) laden vehicle had rammed into a CRPF convoy on Thursday, which had 2500 personnel in it. The dastardly attack killed 45 brave souls, leaving many bodies battered beyond recognition. Terror outfit Jaish-e-Mohammed (JeM) had owned up this cowardly act. Shockingly, Pakistan and China continue to protect the JeM chief in the UN.
India had accorded MFN status to Pakistan way back in 1996; even though Pakistan never returned the gesture.
Read on to find out its impact on our neighbouring country.
What is the MFN status?
It is important to note here that, ‘Most Favoured Nation’ status is given to an international trade partner to ensure non-discriminatory trade between all partner countries of the WTO.
A country which provides MFN status to another country has to provide concessions, privileges, and immunity in trade agreements. It is the first clause in the General Agreement on Tariffs and Trade (GATT).
An MFN status helps reduce trade barriers and results in a reduction in tariffs. An MFN status helps in the promotion of free trade between two or more countries.
What happens now?
Sources in the commerce ministry will now write to WTO in order to revoke MFN status given to Pakistan by invoking Article 21 of WTO, also known as the Security Exceptions Article.
The process of communicating to WTO (file moved) has begun, suggested sources.
As of now, the value of trade between India and Pakistan stands at 2.61 billion dollars or Rs 1.86 lakh crore.
Is revoking MFN status sufficient?
The bilateral trade between India and Pakistan is still very limited. Our response has to change. The government should withdraw the security protection provided to separatists and mainstream Kashmiri politicians at state expense; Masood Azhar’s case for designation as a terrorist should be pushed again in the UN; the FATF should be briefed; some major retaliation should take place across the LoC; the Kartarpur Corridor talks should be suspended; and, finally, Pakistan’s conduct on terrorism should be specifically linked to the future of the Indus Water Treaty.