What is the Most Favoured Nation (MFN) status? All you need to know

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Most Favoured Nation (MFN) status: All you need to know
Most Favoured Nation (MFN) status: All you need to know

New Delhi : In the process of International economic relations, "most favoured nation" (MFN) status is accorded by one nation to other; it is a kind of assurance that the countries will treat each other with equal trade advantages as the "most favoured nation". 

In effect, a country that has been accorded MFN status may not be treated less advantageously than any other country with MFN status by the promising country.

In 1995, the member countries of World Trade Organization (WTO) agreed to give te MFN to each other. India accorded the MFN status to Pakistan a year after the formation of WTO.

However, Pakistan never reciprocated the move, largely due to its domestic political equations. In November 2011, Pakistan government approved according MFN status to India but the decision could never be implemented.

Now, India has revoked the MFN status to Pakistan in a bid of retaliation to the Pulwama terror strike that martyred over 40 CRPF jawans in an IED blast.

On Friday, India gave a signal for more muscular policy towards Pakistan. Besides withdrawing the MFN status, the CCS decided to “initiate” steps for complete isolation of Pakistan in the wake of its continued support to terror outfits carrying out attacks in India.