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TRADE SUSPENDED FORMALLY

What’s in news?

Pakistan has formally suspended its trade relations with India after New Delhi revoked Jammu and Kashmir’s special status.

Key data’s:

  • Trade relations between the two neighbors were already strained following the Pulwama terror attack as India imposed 200 per cent customs duty on all goods imported from the neighboring nation.
  • And now with revoking of special status to Jammu and Kashmir, the federal cabinet headed by Prime Minister Imran Khan endorsed the decisions taken by the National Security Committee and the joint session of parliament, which include suspension of trade ties with India.
  • As per notification SRO928 of 2019, all kind of exports to India have been suspended by amending the Export Policy Order 2016.
  • With the Ministry of Commerce’s statistical data, Imports from Pakistan declined by 92 per cent to USD 2.84 million in March 2019 compared to USD 34.61 million in March 2018.
  • Out of two notifications (SRO927 and SRO928), one suspended all kind of exports to India, while the other banned import of goods of Indian origin or those imported from it.
  • The major items exported by India include chemical products and textiles among others, and the imported items include mineral products and vegetable items.
  • Earlier, this kind of ban was only limited to imports from Israel with which Pakistan has no trade ties at all.
  • Pakistan’s imports have already entered negative growth with almost all countries, except India, as Islamabad mostly imports raw materials from India.
  • According to a data of Indian Council for Research on International Economic Relations (ICRIER), the total exports from India to Pakistan in the financial year 2018-2019 was around USD 2 billion.
  • Pakistan has also suspended import of Indian goods under the Pak-Afghan transit treaty, Special Assistant to the Prime Minister on Information Firdous Ashiq Awan told a media.

MFN Status after Pulwama attack:

After the Pulwama attack in February 2019, India was decided to withdraw the Most Favoured Nation (MFN) status to Islamabad. India had granted the MFN status to Pakistan in 1995. 

 

Links to note:

https://www.iasipstnpsc.in/jammu-kashmir/

https://www.livemint.com/news/india/no-more-trade-ties-with-india-pakistan-retaliates-as-new-delhi-revokes-article-370-1565428618003.html

https://www.indiatoday.in/india/story/article-370-revoked-pakistan-formally-suspends-trade-ties-with-india-1579419-2019-08-10

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