To boost trade activities between Pakistan and India Pakistan declared India as favoured nation (MFN). India has already given most favoured nation (MFN) to Pakistan. India as most most favoured nation will increase trade activities between Pakistan and India according to WTO terms.
Yesterday Indian PM declares this a positive achievement while talking to press in G-20 conference Canada.
In the recent foreign secretary-level talks between the two countries in Islamabad, Pakistani officials had indicated their willingness to replace the policy of keeping a restricted “positive” list of goods for India-Pakistan trade with a more accommodative “negative list” approach.
An MFN treatment doesn’t imply any special or preferential treatment, but merely absence of discrimination. In other words, in the multilateral framweork, it is akin to treating the country as a normal trading partner, when it comes to opening up trade in specified goods or providing tariff benefits. In effect, a country that has been accorded MFN status would not be treated less advantageously than any other country with an MFN status.
What is Most Favored Nation (MFN) ?
(According to Wikipedia)In international economic relations and international politics, most favoured nation (MFN) is a status or level treatment accorded by onestate to another in international trade. The term means the country which is the recipient of this treatment must, nominally, receive equal trade advantages as the “most favored nation” by the country granting such treatment. (Trade advantages include low tariffs or high importquotas.) In effect, a country that has been accorded MFN status may not be treated less advantageously than any other country with MFN status by the promising country.
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