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Pakistan refuses MFN status to India

Discussion in 'Pakistan Economy' started by Varad, Apr 28, 2011.

  1. Varad

    Varad FULL MEMBER

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    Pakistan refuses Most Favoured Nation status to India

    BHURBAN: Pakistan refused to grant Most Favoured Nation (MFN) status to India, but agreed to enhance the positive list of goods, as trade talks between the two countries concluded on Thursday.
    Earlier, Pakistan’s commerce secretary Zafar Mahmood had stated that not granting India ‘Most Favoured Nation’ (MFN) status constituted a non-tariff barrier to trade. The statement came after reports that Pakistan was willing to consider offering MFN status to India in exchange for a removal of non-tariff barriers to trade by New Delhi on goods to Pakistan.
    Talks between India and Pakistan commerce secretaries come to an end in Bhurban, with Mahmood and his Indian counterpart Rahul Khullar leading the talks for their respective sides.
    India and Pakistan have decided to devise a plan for the joint registration of varieties of rice grown in both countries. Pakistan has also agreed to import tea from India by rail.
    Both countries have also agreed to continue trade dialogues in the future, with the next round to be held in India.
    The expansion of trade via road and rail, and the issuing of business visas was also discussed during the meeting.
    India has also offered Pakistan to host Made in Pakistan exhibitions in the country.
    Both sides also expressed satisfaction over the progress of Optical Fibre being laid between India and Pakistan.
    The details of the talks will be officially released at a joint-news conference by the two sides.
    Bilateral trade between India and Pakistan is heavily skewed in India’s favour. Of the total $1.5 billion in trade between the two countries, nearly $1.2 billion are Indian exports to Pakistan, making Pakistan’s trade deficit with India close to $900 million a year. Informal trade, however, is estimated to be between $2 billion and $2.5 billion, leaving most economists to believe that trade between India and Pakistan would skyrocket upon the removal of trade barriers.

    Pakistan refuses Most Favoured Nation status to India – The Express Tribune
     
  2. aks18

    aks18 SENIOR MEMBER

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    thats good .
     
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  3. BATMAN

    BATMAN BANNED

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    Why favor India over China and Turkey or any other friendly state?
     
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  4. justanobserver

    justanobserver SENIOR MEMBER

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    ^^
    :lol:

    MFN ain't something special like a FTA (free trade agreement). All members of the WTO are supposed to award MFN status to each other
     
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  5. Zeeshan360

    Zeeshan360 FULL MEMBER

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    Because we did .
    Btw u already have FTA with China :P
     
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  6. KS

    KS ELITE MEMBER

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    To hell with MFN for Pakistan.

    Give it to Israel or Bangladesh or Sri Lanka.
     
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  7. justanobserver

    justanobserver SENIOR MEMBER

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    India already has MFN with Bangldesh, Srilanka, Israel (and a whole lot of other countries) AFAIK. (Soon we'll be having FTAs with most of South Asia :D)

    MFN is something which is very basic which every member of the World Trade Organization is supposed to give to the other
     
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  8. SR 71 Blackbird

    SR 71 Blackbird BANNED

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    I hope GOI won't give MFN status for BD as there will another India bashing thread in Bangladesh Defence.
     
  9. Varad

    Varad FULL MEMBER

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    We have also given MFN to Pakistan. But there is a big trade deficit, which will get bigger as trade grows. they dont have what we need.
     
  10. justanobserver

    justanobserver SENIOR MEMBER

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  11. Urbanized Greyhound

    Urbanized Greyhound SENIOR MEMBER

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    Only in Pakistan animosity takes precedent over even basic business sense.....

    India is enemy country ,blah blah .....why call it Most Favoured Nation ? Absolutely Childish ...:tdown::tdown::tdown:
     
  12. President Camacho

    President Camacho FULL MEMBER

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    Karthic yar, you worry a bit too much, a little too quick. MFN status doesn't fetch anyone anything. It is best to reserve such sweet words for countries with which we don't share a lot. Except for Pakistan, the entire world is completely open to do trade with India, so why waste it where it won't make any big difference?

    It is more about allocating the resources where they will fetch the best rewards. MFN status to Israel or Bangladesh or Sri Lanka will not fetch India any great advantages beyond what it already gets. But giving it to Pakistan at least showcases India's efforts in maintaining peace in the region.

    Besides, aggression does not need to be preceded by aggressive stance/expression. And India's best approach in weakening Pakistan goes through the trade route. MFN status will help open that.
     
  13. PlanetWarrior

    PlanetWarrior SENIOR MEMBER

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    Well practically, Pakistan cannot grant a MFN status to India considering the trade deficit of $900 million annually. To those posters who mistakenly believe that not granting a MFN status to India indicates a slap in the face of India by Pakistan, you are displaying your ignorance in world economic matters.

    The $900 million annual deficit in trade between India and Pakistan should be of concern to both countries. These are neighbour states and the current hostilities are hindering a balanced trade agreement between the countries. Both countries need to address the trade imbalance and the joint marketing and trademarking of rice is a step in the right direction. If there was better relationships between these two countries at the time of independence then agreements would be in place for minimal or no trade barriers and this would have resulted in the creation of thousand new industries and jobs in both countries.
     
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  14. Urbanized Greyhound

    Urbanized Greyhound SENIOR MEMBER

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    Bro, isn't this mixing politics with business ? Always something to be avoided ...:undecided:

    If in future we do face a situation with Pakistan and given the current scenario , is quite possible ...ought we to engage in large-scale trade with them ? we may have to cut of trading links in protests or as a diplomatic reply to some of their actions.
    It would be the same for them too.
     
  15. Imran Khan

    Imran Khan PDF VETERAN

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    keh diya na nhi dety to nhiii detyy jao ab dimagh mat khao :P