Expert explains why Biden revoked Russia’s ‘most favored nation’ status
GREENVILLE, N.C. (WITN) - President Biden announced the U.S. would revoke “the most favored nation” trade status from Russia in response to Russian President Vladimir Putin’s invasion of Ukraine.
Biden has made it clear that the U.S. will not send troops to Ukraine but instead continue to impose sanctions. If the U.S. does enter the war, he warns there could be grave consequences.
“Direct confrontation between NATO and Russia is World War 3,” Biden said.
The move is one of the latest by Biden to cripple Russia’s economy. Other measures include freezing central bank assets which have led to the Russian ruble losing 76% of its value compared with the U.S. dollar.
But what exactly does it mean to have the “most favored nation” trade status? WITN reached out to Armin Krishnan, an East Carolina University political science professor, for the answer.
“Any country that has the ‘most favored nation’ status gets the same trade conditions as every other country with the ‘most favored nations’ status. It’s a principle of nondiscrimination,” Krishnan explains.
Now that the U.S. has revoked that status from Russia, anything imported from there could be more expensive.
“Generally speaking, the U.S. does not have extensive trading relations with Russia,” Krishnan said. “The trade that we have is fairly small.”
But will sanctions do enough damage to the Russian economy in the long run? Krishnan doesn’t think so.
“Russia still has good trade relations in other countries including China and India, so I think that the Russian economy can survive even with the severe sanctions we’ve imposed on them.”
Krishnan believes that following President Biden’s announcement, many other NATO allies will also revoke Russia’s “most favored nation” status.
Canada was the first major U.S. ally to remove the status from Russia when it did it last week.
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