US Congress Passes Law Stripping Russia of Most-Favored-Nation Status and Energy Embargo: "Not Qualified for Trade"

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The U.S. Congress on the 7th (local time) passed a bill that abolishes the application of 'Most-Favored-Nation (MFN)' trade privileges to Russia, which invaded Ukraine, and bans imports of Russian energy.

According to Bloomberg News and others, both the Senate and the House of Representatives approved two bills containing these provisions on the same day. The Senate unanimously approved both bills with a 100 to 0 vote each, and the House also passed the bills with overwhelming support: 420 to 3 for the abolition of MFN status and 413 to 9 for the Russian energy import ban.

This passage of the bills in the U.S. Congress follows President Joe Biden's executive orders last month, which either implemented or announced plans to implement these measures, signaling Congress's commitment to sanctions against Russia and proceeding with formal legislative procedures. Once signed by President Biden, the two bills passed by Congress will complete the process.

The bills include provisions to revoke the 'Permanent Normal Trade Relations (PNTR)' status, which grants Most-Favored-Nation treatment, from Russia, which invaded Ukraine, and Belarus, which aided Russia. MFN treatment, according to World Trade Organization (WTO) regulations, means providing trade terms between two countries that are no less favorable than those granted to any third country.

With the revocation of MFN status, higher tariffs can be imposed on products from Russia and Belarus. Experts predict that the current average tariff rate of about 2.8% will rise to around 20%. Specifically, tariffs on steel-related products, currently at 0%, are expected to increase to 20%, plywood to 50%, and some jet engine components to 35%, Bloomberg reported.

Senate Majority Leader Chuck Schumer (Democrat) criticized, "Countries whose militaries commit war crimes do not deserve to trade freely with the United States," adding, "Immoral thugs like Putin do not deserve to stand on equal footing with leaders of other free nations."

Earlier, the Senate unanimously passed a lend-lease bill late the previous night to provide weapons and other supplies to Ukraine more efficiently. This bill allows the U.S. to supply materials to allied forces without the time-consuming procedural obstacles that existed during World War II. However, the bill has not yet passed the House of Representatives.

This content was produced with the assistance of AI translation services.