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| No plan to withdraw MFN status granted to Pakistan | | | For the time being the bilateral trade between India and Pakistan has touched a new low there was no compulsion for India to withdraw the Most Favoured Nation status that it had granted to Pakistan in 1996. No doubt pro-India elements have suggested to India to withdraw the MFN status to Pakistan so that it learns a lesson for what it did in Uri where in a terrorists strike 18 soldiers were martyred and 20 others were injured. Already the Government is trying to revise the 1960 Indus Water Treaty though it cannot scrap it.Under the Treaty India can reeucde the share of water which can help it increase power generation.Hence India does not not want to strike again by withdrawing MFN status that had been granted to India.Since the bilateral trade between the t wo sides has touched a new ,low there was no compulsion non the part of India to needle Pakistan by withdrawing the MFN status. Though Pakistan had not granted MFN status to India on one pretext or the other which shows its mentality.While India is trying to maintain its magnanimity by retaining the MFN status.
The Government of India is not considering any proposal to withdraw the Most Favoured Nation (MFN) status accorded to Pakistan, as even without the move, the level of bilateral trade is "very low. There is nothing of that sort [withdrawal of the MFN status] under consideration now,"Since the situation [ties between India and Pakistan] is so tense now, there are these kinds of speculation and demands, and you have to shift [them] out."The MFN status was accorded in 1996 as per India's commitments as a member of the World Trade Organisation (WTO).According to the MFN principle of the WTO's General Agreement on Tariffs and Trade (GATT) - to which India is a signatory/contracting party - each of the WTO member countries (including India and Pakistan in this case), should "treat all the other members equally as 'most-favoured' trading partners."According to the WTO, though the term MFN "suggests special treatment, it actually means non-discrimination." In the wake of the deadly attack on Indian soldiers in Uri, an incident for which India is holding Pakistan responsible, there have been calls in India for tough action against its neighbour, including the revocation of the MFN status.
Bilateral trade between the two nations was just $2.6 billion in 2015-16 (of which $2.2 billion constituted India's exports to Pakistan) - which represented a minuscule 0.4 per cent of India's overall goods trade worth $643.3 billion in the same year. This means that India does not need any valuable products from Pakistan for which the MFN status is to be retained.In fact Pakistan has been a very poor producing country and as such it does nor produce a large number of products that it would export to India.Against this India is competing with developed nations as far as its productivity is concerned and hence it has a great scope for exporting most of these products.In fact during the last 27 years Pakistan has earned the distinction of a major exporter of terror.That Islamabad,is Army and the ISI train militants in over 142 camps and after they receive training in the handling of sophisticated weapons and high grade explosives they export those terrorists to other nations,including India and of later Kashmir has been its focus.Hence India neither gains nor loses from either withdrawing the MFN status or by retaining it. |
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