Pulwama aftermath: MFN withdrawal hits Pak hard, 300 trucks stranded at Wagah border
The traders told ANI that the Indian importers and manufacturers have cancelled all the orders to neighbouring Pakistan and are also demanding the return of advance payments.
- DNA Web Team
- Feb 22, 2019, 01:28 PM IST
In the aftermath of India withdrawing Pakistan’s Most Favoured Nation (MFN) status, businesses across Attari border have come to a halt.
The traders told ANI that the Indian importers and manufacturers have cancelled all the orders to neighbouring Pakistan and are also demanding the return of advance payments.
According to WION, more than 300 trucks are stuck at Wagah Border, awaiting heads up from their Indian importers. Importers will now have to pay triple the amount of the actual buying price.
There is a visible impact of strict measures taken by #India against Pakistan post #PulwamaTerrorAttack as hundreds of Pak truck drivers are stranded at #Wagaha(Pakistan) after India hiked customs duty to 200 percent on the goods imported from Pak. watch this report ; pic.twitter.com/qItEiikaQt
— Ravinder Singh Robin ਰਵਿੰਦਰ ਸਿੰਘ راویندرسنگھ روبن (@rsrobin1) February 22, 2019
The MFN status to Pakistan was given by India in 1996. Most Favoured Nation status is given to an international trade partner to ensure non-discriminatory trade between all partner countries of the WTO.
A country which provides MFN status to another country has to provide concessions, privileges, and immunity in trade agreements. It is the first clause in the General Agreement on Tariffs and Trade (GATT).
On the other hand, another trader Rajdeep Upel, was of the view that the trading activity with Pakistan should not only be closed from Punjab orders but also from the state of Jammu and Kashmir. “All trade organisations support the government’s decision. We are surprised to know that land trade routes in Kashmir are still open, making the ban ineffective.”
1. What is MFN status?
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The MFN status to Pakistan was given by India in 1996. Most Favoured Nation status is given to an international trade partner to ensure non-discriminatory trade between all partner countries of the WTO.”After February 14, all the trading with Pakistan was stopped. At present, 200-250 trucks without goods are parked near the border after the government imposed 200 per cent Regulatory Duty (RD) on non-essential Indian imports,” said Sukhbir Singh, a trader from Amritsar told ANI. “This move of the government of introducing higher Regulatory Duty is making difficult for traders to pay their monthly instalments of tire and trucks. The Centre must re-think on its decision. This move has also affected the food outlets situated near the border areas,” said Sharan Singh, a trader from Amritsar said.
2. How it affects trade
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A country which provides MFN status to another country has to provide concessions, privileges, and immunity in trade agreements. It is the first clause in the General Agreement on Tariffs and Trade (GATT).
3. ‘All trade organisations support Govt’
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On the other hand, another trader Rajdeep Upel, was of the view that the trading activity with Pakistan should not only be closed from Punjab orders but also from the state of Jammu and Kashmir. “All trade organisations support the government’s decision. We are surprised to know that land trade routes in Kashmir are still open, making the ban ineffective.”
4. India to stop ‘sharing’
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