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_: Finally, Pakistan's cabinet unanimously decided to grant India most favoured nation (MFN) trade status-a major breakthrough that could bolster efforts to improve relations between the two states.
It was not something new as both the countries had enjoyed MFN status from 1947 to 1965 and signed four agreements. India conferred Pakistan with MFN status in 1996 and has been waiting since then for it to reciprocate.
Under the principles of the WTO, the member countries are required to grant MFN status to each other, which actually means according equal, non-discriminatory status and treatment. Therefore, if a country reduces tariff on imports from a particular country or a group of countries, the MFN rule requires the same treatment be given to all other WTO member countries. But, some WTO terminologies are problematic. The MFN is one such term. The MFN, according to the WTO, acts as a major booster to the whole process of free trade, and increased trade can play a vital role in normalising the political relationship between the two countries.
Many consider MFN as a special status because of its literal sense. So, they are not ready to give the 'most favoured nation' status to India whom they consider their archenemy and with whom they have yet to settle serious disputes.
The WTO does provide exception in case the countries are actually at war. But, this is not the case between the two neighbouring countries, and if it is the case then Pakistan can follow the example of other countries like United States, which has been using the grant of MFN as a tool to achieve various objectives with respect to countries such as China, Cuba, Iran, and Libya, for years.
What is more important is that both nations now realise that improvement in economic (trade) relations should not wait for conflict resolution. However, with trade we can move towards the conflict resolution, as shown in many other instances in geopolitical history, where disputes have never prevented economic cooperation around the world.
France and Germany had been at loggerheads for over a millennium, but now both are major players in the European Union, which is continuously deepening economic and political cooperation.
Malaysia and Thailand too have border disputes but this has...