After Indus, ‘MFN’ is India’s next weapon

The meeting will be attended by senior officials of the Ministry of External Affairs and the Commerce Ministry, sources said here on Tuesday. The decision to review the status comes within 24 hours of India’s decision to revisit the Indus Water Treaty, which is said to be tilted towards Pakistan. Modi, at a meeting on the treaty had given a tough message to Islamabad, saying that ‘”blood and water can’t flow together.”

India had granted MFN status to Pakistan in 1996 under the WTO’s General Agreement on Tariff and Trade (GATT), signatories to which have to treat each other and rest of WTO member countries, as favoured trading partners. However, despite several assurances, Islamabad was yet to reciprocate India’s gesture. The MFN status gives Pakistan the benefit of low trade tariff and high import quota. 

India has toughened its stand against Pak-sponsored terrorism after the attack on army base camp at Uri, which killed 18 soldiers. Foreign Secretary summoned Pakistan HC Abdul Basit, and presented proof of cross-border origins of Uri attack on Tuesday. 

Meanwhile, Pakistan on Tuesday said India cannot unilaterally separate itself from the agreement and insisted that revocation of the treaty can be taken as an “act of war”. 

“The international law states that India cannot unilaterally separate itself from the treaty,” Sartaj Aziz, Advisor to Prime Minister Nawaz Sharif on Foreign Affairs, said while briefing the National Assembly on the issue. “The act can be taken as breach of international peace and hence giving Pakistan a good reason to approach the UN Security Council,” Aziz said.