Monday, April 6, 2015

MFN principle

How MFN principle works... Who gives it? What are the reasons for giving such a status?
""Most favoured"" is bilateral or multilateral in nature?
If bilateral then why is it said that under WTO if MFN is given then it should extend to all members?
If multilateral, then how does it make a difference if India gives MFN status to Pakistan?

MFN is a status given by the member countries of WTO to eacjh other. this principle just means that there is no positive or negative discrimination to any member country. thats it.
Wto is a multilateral body. Under which the each member country have to provide the MFN status to all countries.
India MFN status for pakisthan do make a lot of differnce. for example, according to the MFN norms there should not be any positiove or negative discrimination and must follow equality. but as far as Ijndia and Pakisthan are considered since recent past we followed only the "postive list of items" not the "negative list of items"

This means that India do not trade all items with pakisthan but have only certain "positive items" in the list and will trade only those items with pakisthan . whereas with the other countries normally we follow "negative list" method. This means that we trade almost all items . And we only follow list of the negative items which is restricted from trading with India.

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