US, allies to revoke ‘most favoured nation’ status for Russia
WASHINGTON, United States (AP) — President Joe Biden will announce Friday that, along with the European Union and the Group of Seven countries, the US will move to revoke “most favoured nation” trade status for Russia over its invasion of Ukraine.
That’s according to a source familiar with the matter who spoke on the condition of anonymity to preview the announcement. The person said each country would have to follow its own national processes. Stripping most favoured nation status from Russia would allow the US and allies to impose higher tariffs on some Russian imports, increasing the isolation of the Russian economy in retaliation for the invasion.
Biden’s move comes as bipartisan pressure has been building in Washington to revoke what is formally known as “permanent normal trade relations” with Russia. Ukrainian President Volodymyr Zelenskyy pressed the US and allies to take the action against Russia in remarks to Congress over the weekend. It follows days after the Biden moved to ban imports of Russian oil and gas products.
Biden, after initially slow-walking congressional efforts to take the trade action against Russia, was set to embrace lawmaker efforts to do just that on Friday.
The White House said Biden would speak Friday morning to announce “actions to continue to hold Russia accountable for its unprovoked and unjustified war on Ukraine.”
The sanctions on imports of Russian oil, gas and coal cut off about 60 percent of US imports from the country.
Most favoured nation status requires a country to treat all countries with that status the same. Members of the World Trade Organization share that status, though some countries have special privileges due to their status as developing economies.
Cuba and North Korea do not have MFN status.
US tariffs on Russian goods vary, but many of the most important imports are either duty free or would face a negligible increase in such taxes, Ed Gresser of the Progressive Policy Institute in Washington, DC, said in an online post.
Duties would surge from zero to 30 percent for certain kinds of ammunition and to 10 percent for some kinds of diamonds.
Canada was the first major US ally to remove most favoured nation status for Russia last week.
