MFN only possible with normal trade: Pak
Pakistan on Tuesday agreed that there was a WTO obligation to grant most favoured nation status to India but said it would only be possible when there was full normalization of trade ties between the two countries.
“MFN is not an award or a degree. Under WTO, members are to grant MFN to each other. That obligation stands and will be completed when there is no list (positive or negative),” visiting Pakistan Commerce Secretary Zafar Mahmood said after the release of a joint statement on trade cooperation by trade secretaries of India and Pakistan.
Mahmood said, February 2012 is the time when the negative list will be phased out. “The moment the negative list is phased out, that signifies full normalization of trade ties,” he said.
Pakistan had announced grant of MFN status to India early this month, but confusion continues to prevail. India granted the MFN status to Pakistan as early as 1996
The development is expected to boost trade between the two countries.
Pakistan maintains a "positive list" of 1,945 items which are allowed to be imported freely from India. Under the South Asian Free Trade Agreement, Pakistan operates a negative list of 1,169 items.
India's Commerce Secretary Rahul Khullar said once Pakistan moves from positive list to a negative list, the bilateral trade would improve considerably. The two-way trade is currently estimated at 2.65 billion USD now.
