MFN status to India & agriculture

December 28, 2012

Most Favoured Nation (MFN)
Most Favoured Nation (MFN)

According to media reports, the country is formalizing the Most Favoured Nation (MFN) status for India. However, all the provinces have shown their reservations over the issue. According to farming community, both agriculture and food are highly subsidised in India while in Pakistan these are heavily taxed.

As stated above, agriculture and food are highly subsidized in India while in Pakistan the farmers are slapped with taxes that make inputs costlier. Thus the Pakistani farmers are at double disadvantage-the subsidy amount that makes inputs cheaper in India than their international prices, but the Pakistani farmers are paying more than the international prices.

The farmers assert that the policies of each country around the world are designed to: (i) to ensure sustainable growth; (ii) keep their standard of living at a relatively acceptable social level; and (iii) take benefit of comparative advantages in production of agricultural and food items.

The policy makers are, therefore, requested to keep the above stated situation in view while opening the border for trade with India and giving Most Favoured Nation status to that country

Khan Faraz
Peshawar

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