India to review Most Favoured Nation status to Pakistan
The meeting comes in the wake of attack on Indian Army base in Uri sector of Kashmir on September 18 that left at least 18 soldiers dead. Photograph: (Getty)
As tensions continue to fester between India and Pakistan following the September 18 Uri attack that left at least 18 Indian soldiers dead, Indian Prime Minister Narendra Modi has now called for a meeting to review the Most Favoured Nation status to the neighbouring country.
After insisting that "blood and water cannot flow together" while referring to the Indus Water Treaty with Pakistan during a meeting held yesterday, Modi will now hold a review meet on Thursday to discuss the Most Favoured Nation Status.
Officials from the Indian ministry of external affairs and commerce ministry, along with other top officials, are expected to attend the meeting, local media reported.
It's pertinent to mention that Indian minister of external affairs Sushma Swaraj also talked tough on Monday while addressing the United Nations and said that Kashmir Valley is an integral part of India.
What is MFN status?
MFN status is when a country enjoys the best trade terms given by its trading partner, according to the World Trade Organisation. This also means that the favoured nation also receives the lowest tariffs, lesser number of trade barriers, and highest import quotas (or none at all).
In other words, it may be said, that all 'Most Favoured Nation' trade partners must be treated equally.
Under the WTO agreements, countries cannot normally discriminate between their trading partners. This principle is known as Most-Favoured-Nation (MFN) treatment.
India–Pakistan trade relations, however, are abysmally low accounting for less than half a per cent of India’s total global trade involving both exports and imports, India's apex industry body ASSOCHAM has said.
(WION with inputs from agenies)