(Image Source: United News)

 
BY RUISHA QIAN
 
ANCHOR EMILY SPAIN

After a long nuclear standoff and three wars in 64 years, Pakistan and India have now mutually granted one another “Most Favored Nation” status.  C-SPAN has the story...

“Pakistan says it has decided to normalize its trade relations with its long-time rival and neighbor India. Pakistan’s Information Minister says the cabinet has today approved the decision to give India the status of “Most Favored Nation”. That means the two countries can now trade on equal terms, giving each other low tariffs and high import quotas.”

So the trade highway is now a two-way street.  After all, India granted Pakistan “Most Favored Nation” status in the mid-1990s.
It took Pakistan 15 years to reciprocate.
An analyst tells Bloomberg the move shows Pakistan has stopped politicizing economic issues.

“This marks a major shift in Pakistan’s strategy for negotiating peace with India ... Pakistan has agreed to the Indian demand that trade shouldn’t remain hostage to political disputes.”

Many of those political disputes remain unresolved.
Which means, there’s still plenty of opposition to normalized relations.
NPR reports...

“Several banned militant groups oppose Pakistan's move in view of the presence of the Indian army in Kashmir. And the decision is likely to earn the ire of right-wing religious forces in Pakistan, who are strongly opposed to normalization of relations with India.”


But a retired Pakistani general tells the Zee News the move is a good strategy to prevent Pakistan from further isolation.

"It's (MFN status) is a very major milestone in terms of change in the mindset of Pakistan... I think they have realised they can't have bad relations with the United States and at the same time continue to have very poor relations with India.”

Many analysts laud the agreement as bringing prosperity, stability and new jobs to both nations. But the Wall Street Journal says that may not happen immediately.

“It is unclear whether Wednesday's move will immediately propel trade higher, largely because non-tariff barriers to trade, such as onerous labeling requirements, could still make things difficult for exporters. A highly militarized border between the two nations—with only one major overland trade post—is also likely to continue to limit commerce despite moves to expand the capacity of customs facilities at that post.”

 

World News

India Becomes Pakistan’s “Most Favored Nation”

November 3, 2011
(2:12)
Pakistan granted India “Most Favored Nation” status, normalizing trade relations with India.
   
TRANSCRIPT

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