What is Most Favoured Nation status?
According to the MFN principle of the WTO’s General Agreement on Tariffs and Trade (GATT) — to which India is a signatory/contracting party — each of the WTO member countries should “treat all the other members equally as ‘most-favoured’ trading partners.”
As Per WTO:- "If You Grant someone a special favour (such as a lower customs duty rate) then you have to do the same for all other WTO members."
***Most Important Point:- Hence, though MFN sounds like special treatment, in effect it means non-discrimination.
Why in News Recently :- Because India Reviewd the MFN Status of Pakistan due to constant ceasefire violations and Terrorist activities, Attacks.
The MFN status was accorded to Pakistan in 1996 as per India’s commitments as a WTO member.
India has also Given MFN Tag to Pakistan, Bangladesh and Vietnam, but review on withdrawal MFN status of Pakistan.
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