U.S. to revoke Russia’s Permanent Normal Trade Relations (PNTR) Status

U.S. to revoke Russia’s Permanent Normal Trade Relations (PNTR) Status

• On 11th March 2022, Joe Biden, U.S. President announced that the U.S. will revoke Russia’s “permanent normal trade relations (PNTR)” status. This is to punish Russia for its invasion of Ukraine.
• Permanent normal trade relations status is a legal designation in the U.S. for free trade with a foreign country. In 1998, the U.S. changed the name from the most favored nation (MFN) to PNTR.
• MFN status is a designation given by one country to another country. The country that is awarded MFN status will be given all trade advantages, such as low tariffs, that any other country also receives. Thus, a country that is awarded MFN status will not be treated worse than any other country with MFN status.
• MFN status is one of the cornerstones of the World Trade Organization (WTO). The members of WTO agree to accord MFN status to each other. However, there are certain exceptions for preferential treatment of developing countries, regional free trade areas, and customs unions.

Published date : 16 Mar 2022 05:17PM