What Is the Most-Favored Nation ?
A most-favored nation (MFN) provision requires a nation to give any concessions, benefits, or resistances conceded in an exchange consent to one country to all other World Trade Organization part nations. In spite of the fact that its name infers partiality toward another country, it means the equivalent treatment all things considered.
As needs be, India concurred MFN status to all WTO part nations, including Pakistan, from the date of passage into power of the purported Marrakesh Agreement, building up the WTO. The WTO is the main worldwide universal Organization managing the principles of exchange among countries and the 164 part nations of the WTO speak to 98 % of world exchange. Just a bunch of extremely little nations are out of the WTO.
India-Pakistan MFN Status
On November 2, 2011, the Pakistani cabinet decided formally to accord India MFN status. But that decision remains unimplemented. In March 2012, Pakistan substituted a “Positive List” of a more than 1,950 tariff lines permitted for import from India, by a “Negative List” of 1,209 lines that could not be imported. This meant that the default setting had moved from ‘no import’ to ‘import’, and instead of listing only items that could be bought from India, Pakistan had listed items that could not be bought, with everything else allowed. But this was still not the same as according India MFN status.
This intransigence has periodically triggered anger in India, and demands have been raised, especially during times of heightened tensions and terrorist attacks sponsored by Pakistan, to withdraw the MFN status that New Delhi has granted to Islamabad. India had not, however, taken that step so far.
A day after withdrawing the status of Most Favored Nation (MFN) given to Pakistan in view of the Pulwama terrorist attack, India increased the original customs duty to 200% on all goods imported from neighboring countries on 16 feb 2019 Saturday.
India has withdrawn MFN status to Pakistan after the Pulwama incident. Upon withdrawal, basic customs duty on all goods exported from Pakistan to India has been raised to 200% with immediate effect. #Pulwama
— Arun Jaitley (@arunjaitley) February 16, 2019
Despite the bilateral ups and downs, the MFN status accorded by India was not touched. As late as December 19, 2018, in response to a query in Rajya Sabha on the withdrawal of MFN status to Pakistan, the junior Commerce and Industry Minister had told Rajya Sabha in a written reply: “No decision has been taken to review the MFN status accorded to Pakistan, so far.”