In the wake of Pulwama terror attack, India on Saturday hiked basic customs duty on all goods imported from Pakistan.
All products exported from Pakistan will bear an extra 200 per cent customs surcharge with immediate effect, said Finance Minister Arun Jaitley in a tweet.
After the dastardly terror attack on CRPF convoy in Jammu and Kashmir’s Pulwama district, India withdrew the Most Favoured Nation (MFN) status accorded to Pakistan. In the explosion, ver 40 jawans were killed.
Addressing media persons after a high-level meeting on Friday, Union Minister Jaitley announced the new status withdrawal update. The Cabinet Committee on Security (CCS) meeting was held at Lok Kalyan Marg, New Delhi around 7 am.
The MFN status was conferred to Pakistan in 1996. The status is given to an international trade partner. It ensures non-discriminatory trade between all partner countries of the World TradeOrganisation (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).
However, Pakistan never reciprocated to India’s MFN gesture. As per an estimate, bilateral trade between India and Pakistan had marginally increased to the US $ 2.41 billion in 2017-18 as compared to the US $ 2.27 billion in 2016-17.
Meanwhile, New Delhi had imported goods worth the US $ 488.5 million in 2017-18 and had exported goods to the tune of US $ 1.92 billion during the period under review.