The US and its allies abolish the most-favored nation status with Russia

US President Biden announced that the country and its NATO, G7, and EU allies will abolish most favored nation status with Russia due to Moscow’s military campaign in Ukraine.

“The United States and our allies and partners continue to increase economic pressure on Putin and continue to isolate Russia on the global stage,” President Biden said today. “This is yet another blow to the Russian economy, which has been hit hard by our sanctions.”

Biden also announced that the United States banned the import of vodka, diamonds and seafood from Russia, and banned the export of American luxury goods to this country and Belarus.

The removal of Russia’s most-favored-nation status opens the way for the United States and its allies to impose tariffs on a wide range of Russian goods, which would put further pressure on an economy that Russia has admitted is “undermining”. get a shock”.

Each country is expected to implement this measure based on its own national processes.

Most-favoured-nation (MFN) treatment is a fundamental principle in international trade of the World Trade Organization (WTO), according to which a member country must accord the same treatment to all other WTO members, without exception. differentiate between developed, developing or underdeveloped countries.

US President Joe Biden at the White House on March 11.  Photo: AFP.

US President Joe Biden at the White House on March 11. Photo: AFP.

In the United States, MFN is officially known as Permanent Normal Trade Relations (PNTR). The repeal of Russia’s status requires congressional approval, but lawmakers in both chambers and bipartisanship have indicated they will.

Far-reaching, unprecedented sanctions on Russian banks and elites, along with export controls on a range of technologies, are putting pressure on the Russian economy. The International Monetary Fund now predicts that the country will fall into a “deep recession” this year.

In 2019, Russia was the 26th largest trading partner of the United States, with bilateral trade worth about $28 billion, according to the office of the United States Trade Representative.

The US mainly imports from Russia mineral fuels, precious metals, stones, iron and steel, fertilizers and inorganic chemicals. All items may be subject to higher tariffs when the US removes the most-favored-nation trade status with Russia.

Russia’s military campaign in Ukraine today entered its 16th day. Russian forces are gradually encircling the Ukrainian capital and taking control of the roads northeast of Kiev after launching an air campaign on the city of Chernihiv, a few kilometers from the capital. Ukraine’s capital about 125 km, last week. Russian units approached Kiev from three directions, leaving only the southern routes open for resupply and evacuation.

However, British intelligence said that Russia may have to withdraw its forces from other directions to strengthen the siege of Kiev, slowing the overall momentum of this force.

Huyen Le (According to Reuters)

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