Let’s know who 'benefits' after the withdrawing of the status of the Most Favored Nation from Pakistan?
Saturday - February 16, 2019 12:51 pm ,
Category : WTN SPECIAL
India gives the 'Most Favored Nation' status to Pakistan in the year 1996
Most Favored Nation: 'Strategy' to isolate Pakistan in the world at diplomatic level
FEB 16 (WTN) - After the terrorist attack on the CRPF soldiers in Pulwama, Kashmir, there is anger across India. Every Indian is demanding that after the violent acts of terrorists hapned on Pakistan's support, the Indian government teaches Pakistan a lesson in a rigorously manner. In view of the anger of the Indian people here, the Modi government took quick action after the Pulwama terror attack and withdrawn the status of Most Favored Nation from Pakistan.
Let’s describe you that after the withdrawing of the status of the Most Favored Nation from Pakistan, what will be the impact on it and on India? After withdrawing the status of the Most Favored Nation from Pakistan, India can now control business activities with Pakistan under diplomacy. For your information, let you know that there is an annual business turnover of approximately 18 thousand crores between India and Pakistan. After withdrawing the status of the Most Favored Nation from Pakistan, India can now shut its markets for strict vigil on Pakistan.
According to the international rules, there is a trade of non-discrimination between the two countries related to the status of the Most Favored Nation. For your information, let you know that the Most Favored Nation status did not mean that India had given special status to Pakistan, but it meant that there would be smooth trade between the two countries and this was the first clause at the time of agreement of GATT (General Agreement on Tariffs and Trade). At the same time, according to WTO (World Trade Organization) rules, its member countries can;t discriminate with their business partners.
Due to the Most Favored Nation status, there was trade without interruption between India and Pakistan, and the special thing in that was that the tariff was less in it. For your information, let you know that India gave Pakistan the Most Favored Nation status in the year 1996, but Pakistan has never given this status to India. Having attained the status of Most Favored Nation, Pakistan was trading with India without any interruption.
For your information, let you know that there is trading of many goods between India and Pakistan like sugar, fruits, vegetables, cement, salt, cotton, dry fruits and steel etc. After withdrawing the status of Most Favored Nation from Pakistan, India can now increase the customs duty on goods importing from Pakistan, which will affect the export of Pakistan.
For your information, let you know that the trade between India and Pakistan was 16 thousand crores in 2016-17, which increased to Rs. 17 thousand crores in the year 2017-18 and this trade is only 0.5 percent of the total business of India. During this time, India exported goods worth 1.9 billion dollars to Pakistan, which is less than one percent of India's total exports. At the same time, India imported goods worth $ 48.8 crore from Pakistan, which is less than 0.2 percent of India's total imports.
However, international trade analysts say that this move by India will lead to more economic losses to India compared to Pakistan, because Indian export is exceeded rather than import with Pakistan. After this strong move of India, Pakistan has no such option to protest now, because Pakistan has not given India the status of the Most Favored Nation and Pakistan has already stopped importing 1,209 items from India.
For your information, let you know that after the status of the Most Favored Nation being withdrawn from Pakistan, it will not cause any more economic loss to it, but India has withdrawn this status from Pakistan to send a message that the terror activities will no longer be tolerable. According to Finance Minister Arun Jaitley, this decision of the Indian government is an important part of Indian diplomacy, under the strategy to completely isolate Pakistan at the global level.
FEB 16 (WTN) - After the terrorist attack on the CRPF soldiers in Pulwama, Kashmir, there is anger across India. Every Indian is demanding that after the violent acts of terrorists hapned on Pakistan's support, the Indian government teaches Pakistan a lesson in a rigorously manner. In view of the anger of the Indian people here, the Modi government took quick action after the Pulwama terror attack and withdrawn the status of Most Favored Nation from Pakistan.
Let’s describe you that after the withdrawing of the status of the Most Favored Nation from Pakistan, what will be the impact on it and on India? After withdrawing the status of the Most Favored Nation from Pakistan, India can now control business activities with Pakistan under diplomacy. For your information, let you know that there is an annual business turnover of approximately 18 thousand crores between India and Pakistan. After withdrawing the status of the Most Favored Nation from Pakistan, India can now shut its markets for strict vigil on Pakistan.
According to the international rules, there is a trade of non-discrimination between the two countries related to the status of the Most Favored Nation. For your information, let you know that the Most Favored Nation status did not mean that India had given special status to Pakistan, but it meant that there would be smooth trade between the two countries and this was the first clause at the time of agreement of GATT (General Agreement on Tariffs and Trade). At the same time, according to WTO (World Trade Organization) rules, its member countries can;t discriminate with their business partners.
Due to the Most Favored Nation status, there was trade without interruption between India and Pakistan, and the special thing in that was that the tariff was less in it. For your information, let you know that India gave Pakistan the Most Favored Nation status in the year 1996, but Pakistan has never given this status to India. Having attained the status of Most Favored Nation, Pakistan was trading with India without any interruption.
For your information, let you know that there is trading of many goods between India and Pakistan like sugar, fruits, vegetables, cement, salt, cotton, dry fruits and steel etc. After withdrawing the status of Most Favored Nation from Pakistan, India can now increase the customs duty on goods importing from Pakistan, which will affect the export of Pakistan.
For your information, let you know that the trade between India and Pakistan was 16 thousand crores in 2016-17, which increased to Rs. 17 thousand crores in the year 2017-18 and this trade is only 0.5 percent of the total business of India. During this time, India exported goods worth 1.9 billion dollars to Pakistan, which is less than one percent of India's total exports. At the same time, India imported goods worth $ 48.8 crore from Pakistan, which is less than 0.2 percent of India's total imports.
However, international trade analysts say that this move by India will lead to more economic losses to India compared to Pakistan, because Indian export is exceeded rather than import with Pakistan. After this strong move of India, Pakistan has no such option to protest now, because Pakistan has not given India the status of the Most Favored Nation and Pakistan has already stopped importing 1,209 items from India.
For your information, let you know that after the status of the Most Favored Nation being withdrawn from Pakistan, it will not cause any more economic loss to it, but India has withdrawn this status from Pakistan to send a message that the terror activities will no longer be tolerable. According to Finance Minister Arun Jaitley, this decision of the Indian government is an important part of Indian diplomacy, under the strategy to completely isolate Pakistan at the global level.
