{
  "id": "RL31558",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "RL31558",
  "active": false,
  "source": "EveryCRSReport.com",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 310789,
      "date": "2005-12-15",
      "retrieved": "2016-04-07T19:25:16.522029",
      "title": "Normal-Trade-Relations (Most-Favored-Nation) Policy of the United States",
      "summary": "In international trade, the term most-favored-nation (MFN) treatment has a meaning at variance\nwith\nwhat it appears to mean: the expression means equal -- rather than exclusively favorable -- treatment\nand is often used interchangeably with \"nondiscriminatory.\" To make this distinction clearer and\navoid a possibly misleading interpretation of the most-favored-nation term, legislation was enacted\nin 1998 to replace it in U.S. law with the term \"normal trade relations,\" or NTR. In this report, both\nterms are used interchangeably with \"nondiscriminatory.\" The United States accords general MFN\ntreatment as a matter of international obligation as well statutory policy to all trading partners;\nhowever, MFN tariff treatment of several countries has been suspended under specific legislation.\nVirtually all such suspensions, initially applied to 21 countries or political entities, took place under\nthe mandate of the Trade Agreements Extension Act of 1951, and two more under country-specific\nlegislation. MFN tariff treatment of countries suspended under the 1951 law can be restored and\nmaintained in effect for one-year periods by using the procedure provided under Title IV of the Trade\nAct of 1974 for such restoration to \"nonmarket economy\" (NME) countries. Under this procedure,\nan NME country needs to conclude with the United States a trade agreement containing a reciprocal\nMFN clause, and be in compliance with the criteria of the Jackson-Vanik (J-V)\nfreedom-of-emigration provision of that act. The two countries whose MFN status was suspended\nby country-specific legislation could -- and did -- have it restored by Presidential action under\nconditions specified in the suspending law.\n Trade agreements with NME countries must be approved by joint resolution, and are triennially\nself-renewable, but their renewal is also subject to Presidential confirmation. To maintain in force\nthe compliance with the J-V criteria (and the MFN status), such compliance must be either\ndetermined semiannually, or waived annually, by the Secretary of State, and such determinations or\nwaivers are annually subject to possible disapproval by joint resolution. Repeated past legislative\naction to disapprove some waivers, particularly those for China, has been unsuccessful and NTR\ntreatment contingent on a waiver has invariably remained in effect. Permanent restoration of NTR\nstatus of any country generally requires specific legislation. \n Of the 29 countries, today's successors of countries or areas originally subject to the 1951\nsuspension, 15 had their permanent NTR status restored by specific legislation (five directly and ten\nafter a period of conditional restoration under the Jackson-Vanik amendment), one (Poland) by the\nPresident under then existing statutory authority, and one (East Germany) administratively through\nunification with West Germany. The status of seven of them is still temporary, subject to the\ndetermination of full-compliance with the Jackson-Vanik amendment, and of three of them under\nthe Jackson-Vanik waiver provision. Two countries (Cuba, and North Korea) are denied NTR status\naltogether. The NTR status of two countries, suspended by individual legislation, has been restored\npermanently by Presidential action as authorized by the suspending legislation.\n This report will be updated as warranted.",
      "type": "CRS Report",
      "typeId": "REPORTS",
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}