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Should Pakistan Grant MFN Status to India ? - Most Favoured Nation Status

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The fear is third class, below quality goods sold from India !!! Hence NO !!!!
It will be bad for Pakistani Industry development tooo!!!

Should Pakistan Grant MFN Status to India?

Written by Dr. Raja Muhammad Khan

Whereas, according to Foreign Minister Hina Rabbani Khar, Pakistan “has decided in principle to grant the Most Favoured Nation (MFN) status to India,” the question arises, would there be some concession from Indian side in reciprocation.

Though India has already granted Pakistan MFN status in 1996, but events followed thereafter and particularly after 9/11, were against the spirit of bilateralism or even good neighbourly relationship. The incumbent FM said in her statement in National assembly that this is being done owing to a number of “achievements” at the bilateral level. However, these achievements are imperceptible as yet.

The honourable Minister reminded the legislatures that India agreed to resume the dialogue process after a pause of two years, therefore; perhaps such a step would be essential to further this process. She said that, “We want progress on not just one but a number of issues with India on permanent basis besides normalization of overall bilateral relations.”

Earlier Makhdoom Amin Fahim, the Commerce Minister has expressed similar sentiments during his Mumbai tour in September 2011. Amin Fahim even stated in Mumbai that, “there was a strong opinion in his country that India should be given the Most Favoured Nation status,” indeed quite contrary to national sentiments.

It is unclear as yet that, whether this is a unanimous decision of the parliament or incumbent Government or individual choices of these two ministers, after they got appreciation either for their outlook or liberalistic views for their host, however, such decisions should not be taken in haste. After all, those who ruled Pakistan since 1996, must had some logic for not granting such a status to India.

It is submitted for the kind considerations and information of these honourable ministers that, the Composite Dialogue Process between India and Pakistan started in 1997. The Nawaz Sharif Government had exceptional relationship with India from 1997 to 1999, except for the bad patch of Kargil conflict.

So much so, during this tenure then Indian Prime Minister Atal Bihari Vajpayee visited Pakistan by road and made a very strong Indian commitment for a better bilateral relationship between India and Pakistan. But, even being a businessman Pakistani Prime Minister having 2/3rd majority in the Parliament, Nawaz sharif did not grant MFN status to India.

Indeed, India came closer to Pakistan for the first time during that period. What were the considerations and logics behind for not giving India the status of MFN must be known to that Government. However, then Government was all out to enhance trade and business with India. Even India was ready to purchase electricity from Pakistan, which was surplus to our needs then.

In the subsequent tenure, during the Military Government of President Pervaiz Musharraf, there have been a number of occasions where, India and Pakistan came closer to each other, where Pakistan could have offered such a concession in lieu of Indian willingness to resume the composite dialogue process particularly after the 12th SAARC Summit on January 6, 2004.

Upon successful conclusion of this Summit in Islamabad, President Musharraf and Indian Premier AB Vajpayee agreed to resume the long suspended composite dialogue processes. These dialogues were to address all issues including the core issue of Jammu and Kashmir.

In fact, from 2004 to 2007, there have been lot of CBMs between India and Pakistan and real developments were made on some of the issues. A number of working groups were established in order to find out the solutions of some of the complicated issues like Kashmir, Siachin and Sir Creek, in fact a real progress.

However, the grant of MFN status was neither demanded nor became a hurdle in the Indo-Pak dialogue process. Unfortunately, sequel to Constitutional Crisis in Pakistan in March 2007, the process of composite dialogue and progress made on them met inordinate delay and retarded thereafter, until suspended following the Mumbai terror attacks in November 2008.

Compared to these two periods; 1997-1999 and 2004-2007, what new and special concessions India has offered to Pakistan, which became compelling factors for our abovementioned ministers to fight Indian case for the grant of MFN to India. Has India stopped human rights violations in its occupied portion of Jammu and Kashmir or decided to do away with the construction of over 100 dams and reservoirs, intended to stop the Pakistani water from three Western rivers, whose water is totally dedicated for Pakistan.

Besides, has India promised to stop supporting the Baloch Sub-nationalists and so-called Islamic terrorists in FATA and other parts of Pakistan? What about the Siachin and Sir Creek issues. If some of these are security issues, but have definite linkages with economy of Pakistan. Indeed, all are having economic repercussions.

Perhaps, MFN status has something to do with the economy and industrial development of Pakistan. Compared to India, Pakistani economy has weak foundation. Its industry is already sick and facing worst crisis of its history. It has fallen prey to domestic instability, law and order situation and insecure from the investment point of view.

Besides, owing to the power shortages and lack of secure environment, the local business class is taking out its assets for investment elsewhere especially in secure countries. Under such insecure conditions, Pakistan cannot expect foreign direct investment (FDI). This would be ideal time for India to flood our markets with Indian goods, after the grant of MFN.

I would not say that over the period of time such a favourable environment has been deliberately created for India to destroy Pakistani economy and industry for ever. But surely, given such a status (MFN) under the prevailing circumstances, where Pakistani industry and economy is highly vulnerable and fragile one can expect even more than this hypothesis.

After such a status, there would be dumping of so-called cheap Indian goods in Pakistani markets. For those unaware of its implication, “Dumping means dropping goods below cost so that the industry of the local country can be destroyed. Then the foreign entity can have a monopoly for decades to come.”

Are we really geared up for such an eventuality? If yes, then be ready for loosing our identity too. After all we are already under the grip of Indian cultural invasion in Pakistan. Thereafter, India can sell us cheap food items, compared to the costlier Pakistani ones. For this purpose, tomorrow we may be asked by India to surrender the remaining portion of waters, currently irrigating our fertile lands. We must understand that one after other we are giving-in a lot and no one realizes that.

The need of hour is that on such issues of national interests, there should be establishment of working groups of technical experts and academicians and national think tanks, whose recommendations should be debated in the Parliament for a consensus decision. Since a formal decision has yet to be made, therefore, let us do it even now, before, personal relations prevail over national interests.

The writer is an analyst of International relations.

http://www.markthetruth.com/current-affair...s-to-india.html
 
Hope soars for MFN status from Pak

Pak Commerce Minister likely to make announcement next week

Ashok Tuteja
Tribune News Service

New Delhi,

India is hopeful that Pakistan would grant it most favoured nation (MFN) status when its Commerce Minister Makhdoom Amin Fahim arrives here later this month for talks on promotion of economic and commercial relations as part of the resumed dialogue process between the two countries. India had granted Pakistan MFN status way back in 1996.

Fahim is expected to arrive on and hold talks with Commerce Minister Anand Sharma. He is also scheduled to call on Prime Minister Manmohan Singh and meet some other leaders and officials.

The Commerce Minister’s visit marks elevation of the dialogue process between the two countries to the ministerial level. The dialogue, suspended by India in the wake of the 26/11 Mumbai attacks, was resumed this February after a hiatus of over two years.

Sources said the two ministers would discuss issues like removal of trade barriers and reducing the number of items on the negative list of products that the two countries don’t wish to trade in. At the last meeting of Foreign Ministers of India and Pakistan in New Delhi in July, the neighbour had announced measures to promote cross-border trade.

Under the changed environment when the two countries are talking of promoting people-to-people contact and enhancing economic ties, New Delhi believes Pakistan would not delay granting it the MFN status and fulfilling its obligations under the WTO regime.

Chambers of commerce of the two countries have also favoured expanding commercial relations. The Confederation of Indian Industry recently stated that it was an appropriate time for Pakistan to accord the MFN status to India.

Meanwhile, India has asked Islamabad to prepare the negative list of items, which it does not want to import from India. Pakistan maintains a ‘positive list’ of items which are allowed to be imported from India.

India-Pakistan trade was estimated at $1.85 billion in 2009-10. Of this, Indian exports were to the tune of $1.7 billion.

It is estimated that unofficial trade between the two countries through the Gulf route could be much more than the official trade.

The Tribune, Chandigarh, India
 
Granting MFN status to India

Dr Raja Muhammad Khan

Whereas, according to Foreign Minister Hina Rabbani Khar, Pakistan “has decided in principle to grant the Most Favoured Nation (MFN) status to India,” the question arises, would there be some concession from Indian side in reciprocation. Though India has already granted Pakistan MFN status in 1996, but events followed thereafter and particularly after 9/11, were against the spirit of bilateralism or even good neighbourly relationship. The incumbent FM said in her statement in National assembly that this is being done owing to a number of “achievements” at the bilateral level. However, these achievements are imperceptible as yet.

The honourable Minister reminded the legislatures that India agreed to resume the dialogue process after a pause of two years, therefore; perhaps such a step would be essential to further this process. She said that, “We want progress on not just one but a number of issues with India on permanent basis besides normalization of overall bilateral relations.” Earlier Makhdoom Amin Fahim, the Commerce Minister has expressed similar sentiments during his Mumbai tour in September 2011. Amin Fahim even stated in Mumbai that, “there was a strong opinion in his country that India should be given the Most Favoured Nation status,” indeed quite contrary to national sentiments.

It is unclear as yet that, whether this is a unanimous decision of the parliament or incumbent Government or individual choices of these two ministers, after they got appreciation either for their outlook or liberalistic views for their host, however, such decisions should not be taken in haste. After all, those who ruled Pakistan since 1996, must had some logic for not granting such a status to India. It is submitted for the kind considerations and information of these honourable ministers that, the Composite Dialogue Process between India and Pakistan started in 1997. The Nawaz Sharif Government had exceptional relationship with India from 1997 to 1999, except for the bad patch of Kargil conflict.

So much so, during this tenure then Indian Prime Minister Atal Bihari Vajpayee visited Pakistan by road and made a very strong Indian commitment for a better bilateral relationship between India and Pakistan. But, even being a businessman Pakistani Prime Minister having 2/3rd majority in the Parliament, Nawaz sharif did not grant MFN status to India. Indeed, India came closer to Pakistan for the first time during that period. What were the considerations and logics behind for not giving India the status of MFN must be known to that Government. However, then Government was all out to enhance trade and business with India. Even India was ready to purchase electricity from Pakistan, which was surplus to our needs then.

In the subsequent tenure, during the Military Government of President Pervaiz Musharraf, there have been a number of occasions where, India and Pakistan came closer to each other, where Pakistan could have offered such a concession in lieu of Indian willingness to resume the composite dialogue process particularly after the 12th SAARC Summit on January 6, 2004. Upon successful conclusion of this Summit in Islamabad, President Musharraf and Indian Premier AB Vajpayee agreed to resume the long suspended composite dialogue processes. These dialogues were to address all issues including the core issue of Jammu and Kashmir. In fact, from 2004 to 2007, there have been lot of CBMs between India and Pakistan and real developments were made on some of the issues. A number of working groups were established in order to find out the solutions of some of the complicated issues like Kashmir, Siachin and Sir Creek, in fact a real progress. However, the grant of MFN status was neither demanded nor became a hurdle in the Indo-Pak dialogue process. Unfortunately, sequel to Constitutional Crisis in Pakistan in March 2007, the process of composite dialogue and progress made on them met inordinate delay and retarded thereafter, until suspended following the Mumbai terror attacks in November 2008.

Compared to these two periods; 1997-1999 and 2004-2007, what new and special concessions India has offered to Pakistan, which became compelling factors for our abovementioned ministers to fight Indian case for the grant of MFN to India. Has India stopped human rights violations in its occupied portion of Jammu and Kashmir or decided to do away with the construction of over 100 dams and reservoirs, intended to stop the Pakistani water from three Western rivers, whose water is totally dedicated for Pakistan. Besides, has India promised to stop supporting the Baloch Sub-nationalists and so-called Islamic terrorists in FATA and other parts of Pakistan? What about the Siachin and Sir Creek issues. If some of these are security issues, but have definite linkages with economy of Pakistan. Indeed, all are having economic repercussions.

Perhaps, MFN status has something to do with the economy and industrial development of Pakistan. Compared to India, Pakistani economy has weak foundation. Its industry is already sick and facing worst crisis of its history. It has fallen prey to domestic instability, law and order situation and insecure from the investment point of view. Besides, owing to the power shortages and lack of secure environment, the local business class is taking out its assets for investment elsewhere especially in secure countries. Under such insecure conditions, Pakistan cannot expect foreign direct investment (FDI). This would be ideal time for India to flood our markets with Indian goods, after the grant of MFN.

I would not say that over the period of time such a favourable environment has been deliberately created for India to destroy Pakistani economy and industry for ever. But surely, given such a status (MFN) under the prevailing circumstances, where Pakistani industry and economy is highly vulnerable and fragile one can expect even more than this hypothesis. After such a status, there would be dumping of so-called cheap Indian goods in Pakistani markets. For those unaware of its implication, “Dumping means dropping goods below cost so that the industry of the local country can be destroyed. Then the foreign entity can have a monopoly for decades to come.”

Are we really geared up for such an eventuality? If yes, then be ready for loosing our identity too. After all we are already under the grip of Indian cultural invasion in Pakistan. Thereafter, India can sell us cheap food items, compared to the costlier Pakistani ones. For this purpose, tomorrow we may be asked by India to surrender the remaining portion of waters, currently irrigating our fertile lands. We must understand that one after other we are giving-in a lot and no one realizes that.

The need of hour is that on such issues of national interests, there should be establishment of working groups of technical experts and academicians and national think tanks, whose recommendations should be debated in the Parliament for a consensus decision. Since a formal decision has yet to be made, therefore, let us do it even now, before, personal relations prevail over national interests.

—The writer is an International Relations analyst.

Pakistan Observer, Online News, Pakistan News, Pakistan Newspaper, News Arround the Globe
 
The first article seems to suggest that a MFN status or any positive action should only be as a reward for some Indian action. This sounds like a very reactive policy. Pakistan can be proactive and attempt to make the talks and trade go forward by granting India the MFN status.
In the end its upto the GoP to decide what is good for Pakistan.

As far as dumping is concerned, WTO is dead against such practices and India will get severe flak if it tries anything of the kind.
 
granting India the MFN status is not going down well with the pakistan public opinion ...
so why the pakistan govt talking about it , i am reading it since last 6-7 months , from pakistani ministers ...?
in my view , if it such a sansitive issue in pakistan , lets the GoP stop talking about it and just keep the things as they are today...
 
Anything that will help to release tension between the two nations which are actually sisters is always welcomed but i highly doubt this status will change anything. Pakistan can benefit alot from Indian investment and India will benefit from stable and rational Pakistan but no Indian company will invest simply because 99% their investment will be in danger.
 
Just like india had given this to Pakistan we can also but "in the same manner" which is ofcourse of no use....
so better stay without this status...:D
 
The fear is third class, below quality goods sold from India !!! Hence NO !!!!
It will be bad for Pakistani Industry development tooo!!!

How can it be bad for your industry if Indian goods are below quality? People will just not buy them. In fact, "cheap below quality crap" that you feel Indians have to live with will be replaced by high quality products and materials from pakistan and will flood Indian markets and homes overwhelming the Indian market and will force indian companies to shut shop! :rolleyes:
 
The fear is third class, below quality goods sold from India !!! Hence NO !!!!
It will be bad for Pakistani Industry development tooo!!!

have you ever encountered these cheap , third class below quality goods mate? do inform us about them so we too will shun these products.:)
 
How can it be bad for your industry if Indian goods are below quality? People will just not buy them. In fact, "cheap below quality crap" that you feel Indians have to live with will be replaced by high quality products and materials from pakistan and will flood Indian markets and homes overwhelming the Indian market and will force indian companies to shut shop! :rolleyes:

A typical cheecky reply....

Indian cheap quality products will also be 'cheaply priced' as compared to domestically produced goods. Keeping in light the bone crushing burden of today's economic pressures and lack of disposable incomes, Indian cheaper products will be bought, at the expense of retarding sales of locally manufactured goods. its called 'pushing' in business-economic nomenclature.

Why did India have a closed economy for so many decades and has only recently opened up? :rolleyes:
 
A typical cheecky reply....

Indian cheap quality products will also be 'cheaply priced' as compared to domestically produced goods. Keeping in light the bone crushing burden of today's economic pressures and lack of disposable incomes, Indian cheaper products will be bought, at the expense of retarding sales of locally manufactured goods. its called 'pushing' in business-economic nomenclature.

Why did India have a closed economy for so many decades and has only recently opened up? :rolleyes:

first study history , then comment , as your argument does not hold water.
its because of us opening up our economy that we are doing well. we asked you to grant us MFN status but you refuse . now who is being closed sighted.?
 
Wrong the MFN will only have limited things if ever granted to India. Besides, Quality and price does matters?

India wants MFN so that it could have one way trade from Pakistan to Afghanistan to Central Asia, and it cannot happen that way.

So MFN status nahi millay ga... Pakistan doesnot get much in return...its happy trading with China.
 
Wrong the MFN will only have limited things if ever granted to India. Besides, Quality and price does matters?

India wants MFN so that it could have one way trade from Pakistan to Afghanistan to Central Asia, and it cannot happen that way.

So MFN status nahi millay ga... Pakistan doesnot get much in return...its happy trading with China.

india cleared the european trade embargo for pakistan so keep crying and your govt has decided to give it:lol:
 
We have already granted MFN status to Pakistan.Now the ball is in Pakistan's court.They should reciprocate appropriately.
 
if pak gives MFN status to india..then what INDIA will gain......nothing LOL
 
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