NEW DELHI: India on Friday withdrew the 'most-favoured country' or MFN status to Pakistan after an apprehension attack which took lives of at least 38 CRPF (Central Reserve Police Force) staff in Jammu and Kashmir.
This is one of the deadliest terror attacks in Jammu and Kashmir when a suicide bomber rammed a car wearing over 100 kg of explosives into their bus in Pulwama district.
The move to take away MFN status would permit India to extend customs duty on items coming from the neighbouring country.
When used to be it given to Pakistan:
India granted the MFN status to Pakistan long ago in in 1996, but the neighbouring country has not yet reciprocated.
The MFN status used to be accorded under WTO's General Agreement on Tariffs and Trade (GATT). Both India and Pakistan are signatories to this; and are participants of the World Trade Organisation (WTO), because of this they have to treat each different and the other WTO member countries as favoured trading partners when it comes to implementing customs tasks on items.
What happens when India gets rid of MFN status:
Removal of this status manner India can now give a boost to customs tasks to any level on items coming from Pakistan, a business skilled mentioned.
Last year in November, a senior aide to Pakistan's Prime Minister Imran Khan had mentioned that the country has "no immediate plans" to grant MFN status to India. Pakistan allows handiest 137 merchandise to be exported from India through the Wagah border land path.
Total India-Pakistan business has larger marginally to $2.41 billion in 2017-18 as against $2.27 billion in 2016-17. India imported items price $488.five million in 2017-18 and exported items price $1.92 billion in that fiscal.
Under MFN pact, a WTO member country is obliged to treat the other trading country in a non-discriminatory approach, particularly with reference to customs duty and different levies.
What India imports and exports:
India principally exports cotton, dyes, chemicals, greens and iron and metal; while it imports end result, cement, leather, chemicals and spices.
For example, when the export of fabrics like cotton and chemicals from India will stop, it'll push up production price for the mentioned Pakistani industries.
The step used to be introduced after a gathering of the cabinet committee on security (CCS), chaired through Prime Minister Narendra Modi, to talk about the safety scenario in J&Okay in the wake of the Pulwama terror attack.
Pros of MFN:
MFN status is useful for the creating countries. The countries with the status have broader get entry to to a market for business items, lowered price of export pieces owing to extremely lowered price lists and business limitations.
It additionally reduces the bureaucratic hurdles and sundry forms of different price lists for imports. It then will increase calls for for the products and giving a boost to the economy and export sector.
This is one of the deadliest terror attacks in Jammu and Kashmir when a suicide bomber rammed a car wearing over 100 kg of explosives into their bus in Pulwama district.
The move to take away MFN status would permit India to extend customs duty on items coming from the neighbouring country.
When used to be it given to Pakistan:
India granted the MFN status to Pakistan long ago in in 1996, but the neighbouring country has not yet reciprocated.
The MFN status used to be accorded under WTO's General Agreement on Tariffs and Trade (GATT). Both India and Pakistan are signatories to this; and are participants of the World Trade Organisation (WTO), because of this they have to treat each different and the other WTO member countries as favoured trading partners when it comes to implementing customs tasks on items.
What happens when India gets rid of MFN status:
Removal of this status manner India can now give a boost to customs tasks to any level on items coming from Pakistan, a business skilled mentioned.
Last year in November, a senior aide to Pakistan's Prime Minister Imran Khan had mentioned that the country has "no immediate plans" to grant MFN status to India. Pakistan allows handiest 137 merchandise to be exported from India through the Wagah border land path.
Total India-Pakistan business has larger marginally to $2.41 billion in 2017-18 as against $2.27 billion in 2016-17. India imported items price $488.five million in 2017-18 and exported items price $1.92 billion in that fiscal.
Under MFN pact, a WTO member country is obliged to treat the other trading country in a non-discriminatory approach, particularly with reference to customs duty and different levies.
What India imports and exports:
India principally exports cotton, dyes, chemicals, greens and iron and metal; while it imports end result, cement, leather, chemicals and spices.
For example, when the export of fabrics like cotton and chemicals from India will stop, it'll push up production price for the mentioned Pakistani industries.
The step used to be introduced after a gathering of the cabinet committee on security (CCS), chaired through Prime Minister Narendra Modi, to talk about the safety scenario in J&Okay in the wake of the Pulwama terror attack.
Pros of MFN:
MFN status is useful for the creating countries. The countries with the status have broader get entry to to a market for business items, lowered price of export pieces owing to extremely lowered price lists and business limitations.
It additionally reduces the bureaucratic hurdles and sundry forms of different price lists for imports. It then will increase calls for for the products and giving a boost to the economy and export sector.
MFN status to Pakistan revoked after Pulwama attack: What it means
![MFN status to Pakistan revoked after Pulwama attack: What it means]()
Reviewed by Kailash
on
February 15, 2019
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