Pulwama attack: What revoking Pak's MFN status means for trade and economy

While a boost for certain domestic industries, India should also expect Islamabad to soon announce retaliatory trade measures

In response to the dastardly terror attack against a Central Reserve Police Force (CRPF) convoy in south Kashmir’s Pulwama district, India announced that it would revoke the most favoured nation (MFN) status given to Pakistan.

Following this announcement, India, under the Customs Tariff Act, increased customs duty to 200 per cent on all Pakistani imports to India.  

The MFN provision, given in Article I of the General Agreement on Tariffs and Trade (GATT) is a principle of non-discrimination, which prohibits WTO member countries from discriminating between their trading partners subject to certain exceptions. It obligates all WTO member countries to