While India’s scrapping of the Most Favoured Nation (MFN) status to Pakistan is an understandable reaction to Pulwama, a closer look at trade ties between the two neigbours, reveals that it is not much of a deterrent. Pakistan’s exports to India have consistently been a fourth of what it imports from India, the MFN concessions notwithstanding. India accorded MFN status to all WTO member countries, including Pakistan, from the date of entry into force of the so-called Marrakesh Agreement, which established the WTO. In accordance with the MFN principle and its obligations under the WTO, India accorded Pakistan MFN status in 1996. In 2011, the Pakistani Cabinet formally accorded MFN Status to India, but the decision remained un-implemented.

Source: dna February 18, 2019 01:30 UTC