India withdraws 'Most Favoured Nation' status given to Pakistan

India withdraws 'Most Favoured Nation' status given to Pakistan

India has withdrawn the 'Most Favoured Nation' status granted to Pakistan in the wake of the Pulwama terror attack in which more than 40 CRPF jawans were martyred.

Union Minister Arun Jaitley said that the government has decided to withdraw the "Most Favoured Nation" status given to Pakistan, in the wake of the worst-ever terror attack in Jammu and Kashmir a day ago when a CRPF convoy in Pulwama was rammed into by an explosive-packed SUV that has left 45 troopers dead.

The decision was taken at a meeting of the Cabinet Committee on Security (CCS) chaired by Prime Minister Narendra Modi after the suicide attack on Thursday that proved to be the most devatating since militancy erupted in 1989.

Speaking to the media after the meeting, Arun Jaitley said: "The most favoured nation status which has been granted to Pakistan stands withdrawn with immediate effect."

Related Links on Pulwama Terror Attack:

• 40 CRPF personnel killed in J&K's Pulwama as Jaish militants attack convoy
• Pulwama terror attack revenge: PM Modi says forces given full freedom
• "Immediately End Support To Terror Groups": US To Pak Over Pulwama Attack

What is 'Most Favoured Nation' status?

• Under the WTO agreements, countries cannot normally discriminate between their trading partners. Grant someone a special favour (such as a lower customs duty rate for one of their products) and you have to do the same for all other WTO members.
• This principle is known as most-favoured-nation (MFN) treatment. It is so important that it is the first article of the General Agreement on Tariffs and Trade (GATT), which governs trade in goods. MFN is also a priority in the General Agreement on Trade in Services (GATS) (Article 2) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) (Article 4), although in each agreement the principle is handled slightly differently. Together, those three agreements cover all three main areas of trade handled by the WTO.

When did India grant MFN status to Pakistan?

• India granted MFN status to Pakistan in 1996, a year after the formation of WTO. After the Uri attack in 2016, Prime Minister Narendra Modi reviewed the MFN treatment accorded to Pakistan. Pakistan still hasn't granted India with MFN status.

Related Links:

• Pakistan no longer 'Most Favoured Nation': India
• Most Favoured Nation: What does Pakistan stand to lose?