CURRENT AFFAIRS

Detailed explanation-1: -Most favored nation (MFN) status is an economic position in which a country enjoys the best trade terms given by its trading partner(s). That means it receives the lowest tariffs, the fewest trade barriers, and the highest import quotas (or none at all).

Detailed explanation-2: -In the US, the “most favoured nation” status is also known as permanent normal trade relations (PNTR). Only North Korea and Cuba do not enjoy the “most favoured nation” status from the US.

Detailed explanation-3: -China’s MFN status was made permanent on December 27, 2001. All of the former Soviet states, including Russia, were granted MFN status in 1996.

Detailed explanation-4: -Why is it important? After becoming a part of WTO, India granted MFN status to Pakistan in 1996, but it was not reciprocated by the latter. After more than a decade, Pakistan offered to extend MFN status to India in 2012 but did not follow through.

Detailed explanation-5: -China was first awarded MFN in 1979, during the Jimmy Carter Administration. Two-way trade between the two countries more than doubled in a year, to $4.9 billion in 1980 from $2.4 billion the year before.