MFN status to India

As per the obligation under the World Trade Organization (WTO), the member countries of WTO shall extend Most Favored Nation (MFN) status to each other automatically, unless otherwise specified in the agreement or schedule notified to the WTO by the member country. Pursuant to this Provision, in case of goods, India has extended MFN status to member countries of WTO. As regards SAARC countries, Bangladesh, Maldives, Nepal, Pakistan and Sri Lanka are members of WTO and except the Islamic Republic of Pakistan, these countries have extended MFN status to India. India has extended MFN status to all these SAARC countries including Pakistan. So far as exception to MFN status, if any, in services is concerned, each member country has indicated the same in the schedule of commitments in services notified to WTO.

It leads to equal treatment amongst countries and ensures a more stable, predictable, reliable and competitive international trade.

This information was given by the Minister of State in the Ministry of External Affairs & Overseas Indian Affairs Gen. Retd. V. K. Singh in Rajya Sabha today.

YSK/ Uma