ndia granted the MFN status to Pakistan way back in in 1996. (Image Credit: PTI)
New Delhi :
Following withdrawal of MFN (Most Favoured Nation) status to Pakistan in the aftermath of Pulwama terror attack, India on Saturday raised basic customs duty on all goods exported from the neighbouring country to 200 per cent with immediate effect. “India has withdrawn MFN status to Pakistan after the Pulwama incident.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,” tweeted Union Finance Minister Arun Jaitley.
India has withdrawn MFN status to Pakistan after the Pulwama incident.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
India granted the MFN status to Pakistan way back in in 1996, but the neighbouring country had not yet reciprocated. The MFN status was accorded under World Trade Organization's (WTO) General Agreement on Tariffs and Trade (GATT). Both India and Pakistan are signatories to this, and are members of the WTO.
Under the MFN pact, a WTO member country is obliged to treat the other trading nation in a non-discriminatory manner, especially with regard to customs duty and other levies. Removal of this status means India can now enhance customs duties to any level on goods coming from Pakistan.
Total India-Pakistan trade has increased marginally to USD 2.41 billion in 2017-18 as against USD 2.27 billion in 2016-17. India imported goods worth USD 488.5 million in 2017-18 and exported goods worth USD 1.92 billion in that fiscal.
At least 40 CRPF personnel were killed and five injured on Thursday in one of the deadliest terror attacks in Jammu and Kashmir when a Jaish suicide bomber rammed a vehicle carrying over 100 kg of explosives into their bus in Pulwama district.