With respect to the ‘most favoured nation (MFN) status’, consider the following statements:

MFN is a preferential trade policy.

WTO has prescribed formal procedure for suspending MFN status.

India suspended Pakistan’s MFN status in 2019.

Which of the statements given above is/are correct?

Question

Most Favoured Nation is a treatment accorded to a trade partner to ensure non-discriminatory trade between two countries vis-a-vis other trade partners. A country which provides MFN status to another country has to provide concessions, privileges, and immunity in trade agreements.
Under rules of WTO, a member country is not allowed to discriminate between trade partners and if a special status is granted to one trade partner, the country is required to extend it to all members of WTO. In a nutshell, MFN is a non-discriminatory trade policy as it ensures equal trading among all WTO member nations rather than exclusive trading privileges.
There is no formal procedure for suspending MFN treatment and it is not clear whether members are obliged to inform the WTO if they do so.
India suspended Pakistan’s MFN status in 2019 after a suicide attack by a Pakistan-based Islamist group killed 40 police. Pakistan never applied MFN status to India.
The United States, the European Union, Britain, Canada and Japan were due to move jointly on Friday to revoke Russia’s “most favoured nation” (MFN) status over its invasion of Ukraine.

GKToday Admin · Accepted Answer

Only 3

Most Favoured Nation is a treatment accorded to a trade partner to ensure non-discriminatory trade between two countries vis-a-vis other trade partners. A country which provides MFN status to another country has to provide concessions, privileges, and immunity in trade agreements.
Under rules of WTO, a member country is not allowed to discriminate between trade partners and if a special status is granted to one trade partner, the country is required to extend it to all members of WTO. In a nutshell, MFN is a non-discriminatory trade policy as it ensures equal trading among all WTO member nations rather than exclusive trading privileges.
There is no formal procedure for suspending MFN treatment and it is not clear whether members are obliged to inform the WTO if they do so.
India suspended Pakistan’s MFN status in 2019 after a suicide attack by a Pakistan-based Islamist group killed 40 police. Pakistan never applied MFN status to India.
The United States, the European Union, Britain, Canada and Japan were due to move jointly on Friday to revoke Russia’s “most favoured nation” (MFN) status over its invasion of Ukraine.