Most favored nation status, good or bad?

Re: Most favored nation status, good or bad?

Any member of the WTO can complain against unfair trade practices of another country in most areas. Countries are also permitted a bit of leeway in terms of negative lists.

If Indian trade practices are indeed discriminatory to Pakistan as is alleged, that cannot be sorted out by keeping out of the game. But MFN is a secondary question. The primary one is, will increased trade with India help Pakistan. Let's be realistic. Some industries WILL get affected, but will the overall scenario be better?

1) "Indian imports will destroy mfg": Has cheaper Chinese imports done that to Pakistan?
2) "India will have a higher balance of trade": Probably true, but apart from ego stuff, BOT with one specific country does not matter. What matters is this: Does Pakistan have a better BOT overall?
3) Theoretically at least, the potential market of Pakistani manufacturers will increase 5-6 times, while that for Indians will increase by 10-20%
4) We have not even included other sectors that would grow because of this - transport, banking, hotels, et al

Re: Most favored nation status, good or bad?

CM, i suggest you give up trying to errm master the nuances of economics, and stick to digging ditches.

what you quoted is a case for liberalization of trade restrictions, and not a case for how imports ruin local industries in south asia. ab jao, shabash, read your abcd up. leave reading papers to educated people.

Re: Most favored nation status, good or bad?

I guess his comments make real sense dear “Dung beetle”. He is giving a sensible reply.
By the way, why do you call yourself a dung beetle? What this dung has got to do with beetle? :smiley: :smiley:

Re: Most favored nation status, good or bad?

lahore, this thread is not about queer, why are you trying so hard to derail your own thread lol?

Re: Most favored nation status, good or bad?

It does not make any difference to the trade frequency between both nations.

Re: Most favored nation status, good or bad?

CM, I'll try and give you a non-text-booky idea.

In the simpler form, each economy gets to specialize on what it has comapritive advantage over - thus giving each something trade with, with the other. Your view that India has the comparitive advantage over Pakistan on all goods and services is severely flawed. Raw material, labor quality / cost, not to mention very pronounced science-art skillset variations exist. I don't want to do all the thinking for you but I am sure if you put your heart (or whatever it is you use for such purposes) to it, you can come up with a few things you can be proud of