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Showing posts with the label trading system

Russia’s no longer a ‘most-favored nation’: 5 questions about the coveted trading status answered

Russian-made goods will likely cost more in Western liquor stores if most-favored-nation status is removed. AP Photo/Gene J. Puskar Charles Hankla , Georgia State University The U.S., the European Union, Japan and Canada are further severing Russia from global markets by removing a coveted trading designation over its war in Ukraine. Known as most-favored-nation status, it generally entitles a country to the best possible trading terms, which comes with many economic benefits. The EU agreed to drop the designation on March 15, 2022, and Congress is close to doing the same . Charles Hankla , a political scientist who studies trade at Georgia State University, explains what most-favored-nation status is, why countries want it and the consequences of Russia losing it. 1. What is most-favored-nation status? Designating a country as a “most-favored nation,” which the U.S. also calls permanent normal trading relations, lies at the hea