MFN Status Revoked: India Increases Trade Duties For Pakistan By 200%
Mahnoor Sheikh (@mahnoorsheikh03) Published February 17, 2019 | 05:30 PM
The decision will affect Pakistan’s exports to India, which currently stand at around $490 million.
Islamabad (UrduPoint / Pakistan Point News – 17th February, 2019) The duties on goods being traded between India and Pakistan have increased by 200 per cent after India revoked Most Favoured Nation (MFN) status to Pakistan.
Indian Finance Minister Arun Jaitley said in a tweet, “India has withdrawn MFN status to Pakistan after the Pulwama incident.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.”
The decision will affect Pakistan’s exports to India, which currently stand at around $490 million.
However, with Indian exports to Pakistan valued at just under $2 billion, any retaliatory tariff hike from Islamabad will also adversely impact all Indian companies currently selling products on the Pakistani market.
Meanwhile, Adviser to the prime minister on Commerce, Textile, Industry and Investment Abdul Razak Dawood said that India did not inform Pakistan of its decision to withdraw MFN status to Pakistan.
He said that we are considering India’s move to revoke MFN status to Pakistan. Pakistan can raise the matter on various forums, including world trade forum, the adviser said.
India revoked its MFN status to Pakistan on Friday.
The move comes a day after 40 Indian soldiers were killed in a terror attack in Indian-Administered Kashmir.
Most favoured nation status is given a trade partner to ensure non-discriminator trade between the two countries. Indian granted Pakistan the status in 1996.
Both India and Pakistan are signatories to the WTO's General Agreement on Tariffs and Trade, which means they have to treat each other and other WTO member countries as favoured trading partners in terms of custom duties.
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