ZT Online Desk
New Delhi : The government withdrew the status of ‘Most Favoured Nation’ given to Pakistan in the wake of the gruesome terrorist attack by Jaish-E-Mohammad in Pulwama district of Jammu and Kashmir on February 14, which left over 39 CRPF personnel dead.
Finance Minister Arun Jaitley briefed the media after the Cabinet Committee on Security (CCS) meet, chaired by Prime Minister Narendra Modi, to discuss the security situation in Jammu and Kashmir after the attack. “The Most Favoured Nation status to Pakistan stands withdrawn,” Jaitley said.
Most Favoured Nation is a treatment accorded to a trade partner to ensure non-discriminatory trade between two countries vis-a-vis other trade partners. The importance of MFN is shown in the fact that it is the first clause in the General Agreement on Tariffs and Trade (GATT). Under WTO rules, a member country cannot discriminate between its trade partners. If a special status is granted to a trade partner, it must be extended to all members of 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.