GOVERNMENT OF INDIA WITHDRAWS MOST FAVORED NATION STATUS GIVEN TO PAKISTAN, POST PULWAMA TERRORIST ATTACK 2019
According to various newspaper reports, the Government of India has withdrawn the Most Favored Nation (MFN) status given to Pakistan on 15.02.2019, in response to the recent terrorist attack by Pakistan backed Jaish-e-Mohammed terrorists on Central Reserve Police Force (CRPF) Personnel of India in Pulwama District of Jammu and Kashmir dated 14.02.2019.
The MFN principle is an essential element of the multilateral trading system under the World Trade Organization (WTO), a global international organization dealing with trade rules between nations. The MFN principle provides that no member country can discriminate amongst its trading partners/member countries, or give a special treatment, provide beneficial and special privileges, lower tax rates, etc, or favour its domestic goods and services over foreign products.
As per the obligation under the WTO, India had conferred the MFN status to Pakistan in 2014 along with other South Asian Association for Regional Cooperation (SAARC) countries including Bangladesh, Maldives, Nepal, and Sri Lanka.
Owing to the recent atrocious Pulwama Terrorist Attack 2019, India has, reportedly, withdrawn the MFN status conferred to Pakistan, as a result of which, India can now levy higher taxes and duties on goods coming from Pakistan to India, as per trade experts.
The Prime Minister of India, Shri Narendra Modi has condemned the Pulwama Terrorists Attack and has stated that the perpetrators of the Pulwama Terrorist Attack and those aiding and abetting the same would be strictly punished.
Harini Daliparthy
Senior Legal Associate
The Indian Lawyer
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