What is the “Most Favoured Nation” Status Mean? Benefits & Facts to Know

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What is the Most Favoured Nation Status Mean

Yesterday a very heartbreaking strategy happened in  Pulwama city of Jammu and Kashmir, India. A suicide bomber identified as Adil Ahmad Dar was driving the SUV carrying explosives of around 300 kg, targets a CRPF convoy of 70 vehicles. The SUV tamped one of the CRPF vehicles leads to blasting and killing of around 40 Jawans, who were travelling in the bus.

The Islamist militant group named Jaish-e-Mohammed is responsible for the attack, which is based in Pakistan. The incident took place around 20 km from the Srinagar on the Jammu-Srinagar highway at around 3:30 pm IST, Thursday 14 Feb 2019.

While the whole nation was celebrating Valentine’s day 2019, the CRPF Jawans were struggling between life and death. More than 20 peoples are injured in the terror accident.

What Prime Minister Narendra Modi has to Say?

Prime Minister Narendra Modi strongly condemn the incident on his tweeter:

Along with this, the Indian government scrapped the “Most Favoured Nation” status from the neighbouring country Pakistan.

Many Countries along with  US, Russia, Sri Lanka, Singapur, Nepal, Bhutan etc. come forward to condemn the terrorist attack done by the Pakistan based militant group Jaish-e-Mohammed.

The celebrities like Shah Rukh Khan, Salman Khan, Alia Bhatt, Varun Dhawan, Kuldeep Yadav, Virat Kohli, Shikhar Dhawan, Rohit Sharma etc condemn the incident in their tweet.

So, the question is what is “Most Favoured Nation” Status and what is its benefits.

What is “Most Favoured Status” Mean? And the Benefits of MFN

“Most Favoured Nation” or MFN is an international economical term where one country approved another country for the MFN trade benefits. The country who is approved for this treatment gets the equal trade benefits the same as the country who approved it. They get advantages like high import quotas, low tariffs etc. The country which gets the MFN status should be treated or should get same advantages as the promising country.

According to the WTO trade law, MFN is the most important foundation of the principle of national treatment. Let’s see in an example below:

If a country ‘A’ provides the MSN status to the country ‘B,’ than the country ‘A’ has to provide benefits like privileges, immunity and concessions to the country ‘B’ in the trade agreements.

On the General Agreement on Tariffs and Trade, these are the main clauses.

So, in the above example, the country ‘A’ is India and the country ‘B’ is Pakistan.

Rather than exclusive trading privileges, MFN covers the non-discriminatory policy of trade which confirms equal trading among all the members of WTO.

History of the “Most Favoured Status”

The MFN first introduced in the 11th century. But today’s rule of the same mainly starts in the 18th century.

The India government accorded the MFN status to Pakistan in 1996, which is taking back after the Pulwama attack.

But Pakistan is not accorded the same status to India yet.

After Withdrawing of the MFN status from Pakistan?

As of now, the Indian government declared the withdrawn of the “Most Favoured Nation” from Pakistan, following the Pulwama attack on 14th Feb. 2018. After that Pakistan will not get any MFN benefits and tariffs in international economic trade.

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What is the "Most Favoured Nation" Status Mean? Benefits & Facts to Know
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After the Pulwama attack on 14th Feb 2019, check out what is the “Most Favoured Nation” status.
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Everlasting Celebrations
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