What's new

Pakistan ready to extend MFN status to India: Envoy

I disagree. It is economics because even though we granted MFN a decade back, you guys did not capitalize on it because your manufacturing costs are high relative to India.

Our agriculture is highly subsidized to benefit our farmers. We spend close to $100 billion on agricultural subsidies and provide free electricity to farmers. Income from agriculture is exempt from taxes. IF you grant MFN you are afraid that we will flood your mandi with our cheaper agri products.

If you import our agri products duty free then your consumers will benefit by reduced prices by up to 30%.
There are mechanisms for that. WTO members can temporarily halt trade when "flooding" occurs, it's made so that trade deficits don't get out of control.
 
There are mechanisms for that. WTO members can temporarily halt trade when "flooding" occurs, it's made so that trade deficits don't get out of control.

Then what is stopping you from granting MFN? If it is politics then what have you achieved by not granting MFN. It is all grandstanding by some politicians to show gullible people that we are here to gobble up your markets.

You are already getting Indian goods from Dubai with Indian label removed. LOL. Instead you can import from Wagah border and collect taxes.

Advantages from free trade instruments like MFN out weigh whatever disadvantages that may come up short time. If you can withstand the bumps then your economy will become resilient and competitive. As you said you have mechanisms in place to address issues that may crop up.
 
Then what is stopping you from granting MFN? If it is politics then what have you achieved by not granting MFN. It is all grandstanding by some politicians to show gullible people that we are here to gobble up your markets.

You are already getting Indian goods from Dubai with Indian label removed. LOL. Instead you can import from Wagah border and collect taxes.

Advantages from free trade instruments like MFN out weigh whatever disadvantages that may come up short time. If you can withstand the bumps then your economy will become resilient and competitive. As you said you have mechanisms in place to address issues that may crop up.
Local politics are a tough nut to crack, it's as simple as that. The opposition of either nation would consider any sort of concession to the other nation as extremely anti-national.
 
Back
Top Bottom