Withdraws MFN status
India had granted the MFN status to Pakistan way back in 1996, but Islamabad has not yet reciprocated. The MFN status was accorded under WTO’s General Agreement on Tariffs and Trade (GATT). Both India and Pakistan are signatories to this, and are members of the World Trade Organisation (WTO), which means they have to treat each other and the other WTO member countries as favoured trading partners in terms of imposing customs duties on goods.
Removal of this status means India can now increase customs duties to any level on goods coming from Pakistan, Telegraph quoted a trade expert as saying. India-Pakistan trade has increased marginally to $2.41 billion in 2017-18 as against $2.27 billion in 2016-17. India imported goods worth $488.5 million in 2017-18 and exported goods worth $1.92 billion in that fiscal. India mainly exports cotton, dyes, chemicals, vegetables and iron and steel; while it imports fruits, cement, leather, chemicals and spices.
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