Jammu & Kashmir Current Affairs - 2019

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India Withdraws MFN Status of Pakistan

One day after the Pulwama terror attack on 14th February, 2019, India has taken a stern step of withdrawing the Most Favoured Nation or MFN Status of Pakistan. This move would enable India to increase customs duty on goods coming from Pakistan. The decision was taken in the meeting of the Cabinet Committee on Security (CCS) that took place on 15th February 2019.

What is the MFN Status?

  • The MFN status is given under WTO’s General Agreement on Tariffs and Trade (GATT). It is given to an international trade partner to ensure non-discriminatory trade amongst all the members of WTO.
  • As per the first clause in the General Agreement on Tariffs and Trade (GATT), a country providing MFN status to another country has to provide concessions, privileges, and immunity in trade agreements.
  • WTO states that if a special status is granted to one trade partner, the country is required to extend it to all members of the WTO without discrimination or any special treatment.
  • An MFN status helps reduce trade barriers and results in a reduction in tariffs especially in customs duty. This in turn strengthens trade-ties between the two countries.
  • As India and Pakistan both are members of the WTO, both are required to grant MFN status to each other and other partner countries.
What is the State of MFN Status Between India and Pakistan?

India had granted MFN status to Pakistan in 1996, a year after the formation of WTO. But Pakistan hasn’t accorded MFN status to India till now. The reason for this is decades of conflict, mistrust and war. Now the total India-Pakistan trade has increased marginally to $2.41 billion in 2017-18 as compared to $ 2.27 billion in 2016-17. India had imported goods worth $488.5 million in 2017-18 and exported goods worth $ 1.92 billion in that fiscal. India’s exports mostly include cotton, dyes, chemicals, vegetables and iron and steel; while its imports include fruits, cement, leather, chemicals and spices. Given that Indo-Pakistan trade-ties is not very strong, this step of revoking the MFN status is only symbolic.

What is the Cabinet Committee on Security?

There are 6 Cabinet Committees in India i.e. Appointments Committee of the Cabinet, Cabinet Committee on Accommodation, Cabinet Committee on Economic Affairs, Cabinet Committee on Parliamentary Affairs, Cabinet Committee on Political Affairs and Cabinet Committee on Security. The Cabinet Committee on Security (CCS) of the Central Government of India looks into the matters of defence expenditures and National Security. It consists of the Prime Minister, Minister of Home Affairs, Minister of External Affairs and, Minister of Finance and Minister of Defence. It is chaired by the Prime Minister.

About the Pulwama Terror Attack

37 CRPF personnel were martyred in Jammu and Kashmir’s Pulwama district on 14th February 2019 when a terrorist attacked with an explosive-laden vehicle into one of the buses of the convoy of the security forces. Jaish-e-Mohammed has taken responsibility for the attack. There were more than 78 vehicles in the convoy in which 2500 personnels were present. This is the worst terror attack since the Uri attack in 2016.

Month: Categories: International

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Enhancing Agribusiness of Cooperatives in Maharashtra

The Cooperatives Department of Maharashtra has decided to appoint managers at six major cities across the country to enhance agribusiness between cooperatives in Maharashtra and other States.

Improving Agri-Business

Maharashtra has a surplus of products such as onion, tomato, grapes, pomegranate, mangoes and raisins. These are traded in other states and in the process the traders accumulate the huge profits while the farmers are paid low due to the surplus production in the state.

To bridge the mismatch and ensure a better price for farmers and reduced burden on consumers, the Maharashtra government would appoint Managers at the cities Guwahati, Kolkata, Chennai, New Delhi, Chandigarh and Jaipur to look for business opportunities in other States.

Strengthening the Cooperatives

The Maharashtra government would strengthen the farmers cooperatives in the state to revive and enhance the collection and trading capabilities of cooperative institutions. The strengthening of cooperatives would be through two step prolonged strategy:

  • Old cooperatives, which have been in the State since the 1950s, are being revived with the help of the new strategy and funding from institutions such as the World Bank.
  • Provide an air freight subsidy on a pilot basis to carry high-value agricultural produce to the North East, Sikkim and Jammu & Kashmir, which will build up the appetite and demand from local markets.

The cooperatives will sell supply fruits and vegetables directly to similar cooperatives institutions in other States. The profits would be retained by the cooperatives owned by the farmers.

Month: Categories: StatesUPSC

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