MFN STATUS TO MFN STATUS TO INDIAINDIA

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MFN Status to India-MFN Status to India-Imperative/compulsionImperative/compulsion

The meaning of most favourable nation is The meaning of most favourable nation is not what it literally means and renders a not what it literally means and renders a lot of people into misconception. lot of people into misconception.

Offering India the most favourable status Offering India the most favourable status does not mean that we are submitting to does not mean that we are submitting to India or giving up Kashmir as the core India or giving up Kashmir as the core issue among the two countries.issue among the two countries.

India has given Pakistan most favourable India has given Pakistan most favourable nation status since 1996, has it changed nation status since 1996, has it changed anything among these countries. anything among these countries.

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I bet the same when Pakistan will do I bet the same when Pakistan will do the same. China has territorial the same. China has territorial disputes with India yet it is bolstering disputes with India yet it is bolstering its trade with India.its trade with India.

We should also be open minded. We should also be open minded. We will have to work tactfully.We will have to work tactfully. Things which have been imported Things which have been imported

from half way around the world will from half way around the world will be imported from neighborhood and be imported from neighborhood and cost will be reduced significantly. cost will be reduced significantly.

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On the other hand, Pakistani On the other hand, Pakistani products will also reach Indian products will also reach Indian market more easily.market more easily.

Pakistan has passed through Pakistan has passed through various diplomatic failures since various diplomatic failures since 9/11. This has been because of 9/11. This has been because of directionless decisions.directionless decisions.

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This act will also go begging if we will This act will also go begging if we will not get full advantages of it. not get full advantages of it.

We must pressurized India to reduce the We must pressurized India to reduce the tariff barriers placed by Indian tariff barriers placed by Indian authorities on Pakistani products. authorities on Pakistani products.

Take agriculture as an example, Indian Take agriculture as an example, Indian agricultural industry is heavily agricultural industry is heavily subsidized. subsidized.

The tractor in India costs half the cost of The tractor in India costs half the cost of it in Pakistan.it in Pakistan.

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Urea cost is four times lower than in Urea cost is four times lower than in Pakistan. Pakistan.

Electricity is almost free to the farmers Electricity is almost free to the farmers while in Pakistan its cost is unbearably while in Pakistan its cost is unbearably high. high.

Same can be said for the taxes on Same can be said for the taxes on agricultural products. So, owing to agricultural products. So, owing to these factors the cost of the products these factors the cost of the products will become inevitably higher as will become inevitably higher as compared to India. Thus it will be compared to India. Thus it will be natural for the consumers to buy Indian natural for the consumers to buy Indian products over those of Pakistani origin. products over those of Pakistani origin.

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At the moment Indian goods of all kinds, At the moment Indian goods of all kinds, from tyres to fabrics and from tyres to fabrics and pharmaceuticals, from machinery to pharmaceuticals, from machinery to Dabar Ka Hajmula is being smuggled into Dabar Ka Hajmula is being smuggled into Pakistan either across the border or Pakistan either across the border or routed via third countries.routed via third countries.

See the recent tragedy of Siachen. See the recent tragedy of Siachen. If government is not going to change its If government is not going to change its

policy towards the agriculture and policy towards the agriculture and Business industry, Pakistan is going to Business industry, Pakistan is going to face a huge knock out blow and there will face a huge knock out blow and there will be no chance for Pakistan to standup be no chance for Pakistan to standup again. Government should ponder onto again. Government should ponder onto this matter.this matter.

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Advantages and Benefits Advantages and Benefits of MNF Status to Indiaof MNF Status to India

Stiffer CompetitionStiffer Competition Increase in quality of productsIncrease in quality of products Reduce in prices of productsReduce in prices of products Rational decision makingRational decision making Reduce costReduce cost Preferential access to IndiaPreferential access to India

(cement, Agriculture, Textile (cement, Agriculture, Textile products)products)

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Larger marketLarger market Boost economyBoost economy Achieve potential trade volumeAchieve potential trade volume Regional stability, harmony & Regional stability, harmony &

sustainable developmentsustainable development Helpful in worsening energy Helpful in worsening energy

shortfallshortfall Integrated check post at AttariIntegrated check post at Attari

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Disadvantages of MFN Disadvantages of MFN Status to IndiaStatus to India

Some circles, particularly traders who have Some circles, particularly traders who have defended ‘opening up of trade” with India as if defended ‘opening up of trade” with India as if granting MFN was the real means to do so.granting MFN was the real means to do so.

Small beginning to significant extent to “no Small beginning to significant extent to “no limit”.limit”.

Caution with a country with which there had Caution with a country with which there had been three wars, including a trade/devaluation been three wars, including a trade/devaluation war in 1949.war in 1949.

Prof G W Choudhry’s book on India-Pak RelationsProf G W Choudhry’s book on India-Pak Relations Such a sudden guillotine of trade boycott can be Such a sudden guillotine of trade boycott can be

applied to accept certain political demands if our applied to accept certain political demands if our trade becomes India-centric, which is likely to trade becomes India-centric, which is likely to happen given all the prevailing condition. happen given all the prevailing condition.

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Three Major Irritants Three Major Irritants Kashmir Dispute, Kashmir Dispute, Impediments on access to Impediments on access to

Indus River Waters to Indus River Waters to Pakistan, with Indian plans to Pakistan, with Indian plans to build dams on them build dams on them

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And most importantly Indian And most importantly Indian subversion in Balochistan which is subversion in Balochistan which is going on since seventies or so. Azad going on since seventies or so. Azad Balochistan stint was floated by India Balochistan stint was floated by India etc, and now from Jab lei Siraj India etc, and now from Jab lei Siraj India along with CIA, Mossad and Raw is along with CIA, Mossad and Raw is jointly operating to aid the subversive jointly operating to aid the subversive groups and activities, by supplying groups and activities, by supplying arms and money to the anti-Pakistan arms and money to the anti-Pakistan BalochisBalochis

V S Naipaul in his book “ Among V S Naipaul in his book “ Among Converted Peoples” hints at foreign Converted Peoples” hints at foreign involvements in Balochistaninvolvements in Balochistan

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Calling India “MFN” damages the Calling India “MFN” damages the possibilities of Pakistan taking claims possibilities of Pakistan taking claims against India in the UN and against India in the UN and international forumsinternational forums

Use of the word “Most Favoured Use of the word “Most Favoured Nation” for India implies Pakistan Nation” for India implies Pakistan being denied any locus standi on being denied any locus standi on objecting to India’s candidature to objecting to India’s candidature to Perm seat on UNSC, withdrawing Perm seat on UNSC, withdrawing Kashmir case, having no right to Kashmir case, having no right to raising the question of Indian raising the question of Indian schemes to turn Pakistan into a desertschemes to turn Pakistan into a desert

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