The United States, along with the Group of Seven and the European Union, will move today to remove the “rather-favored state” clause from Russia to invade Ukraine, paving the way for an increase in customs duties, according to sources. aware of the subject and US media reports.
US President Joe Biden is expected to announce today his intention to take this measure, the final decision on which will be taken in coordination with the G7 and the European Union, and, as far as Washington is concerned, it must take approval by Congress. This approval is expected to be formal, as in a show of rare bipartisan sympathy, Republicans and Democrats have voted in favor of the measure.
Joe Biden is expected to announce his intention tonight (22.15 Greek time) as part of the announcement of new measures in response to Russia’s “unprovoked and unjustified war” against Ukraine.
The rather-favored state clause is the cornerstone of free trade and guarantees the principle of reciprocity and non-discrimination, which govern trade relations between states.
Thus, the World Trade Organization requires every trade advantage, such as the reduction in customs duties, given by one member of the organization, to be automatically applied to the rest.
In particular, depriving Russia of the most-favored-nation clause would allow trading partners to impose higher customs duties, penalizing Russian exports and further hurting the Russian economy, which is heading for deep recession.
The new sanctions will add to the barrage of measures aimed at phasing out Russia’s economic and financial ties with the rest of the world.
SOURCE: ΑΠΕ-ΜΠΕ
Source: Capital
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