A Change In Terminology But Not In Tariff Status

Nation's Business, Sept, 1998 by James Worsham

Now, Congress has cleared things up by changing the term "most favored nation" to what it actually means--"normal trade relations." The change was made in the Internal Revenue Service reform legislation signed by President Clinton on July 22.

When a country has MFN--now NTR--status, the goods it exports to the United States are subject to the lowest permissible U.S. tariffs. All but six nations now have NTR status.

China was first granted MFN status in 1979, shortly after the United States established diplomatic relations with the communist regime in Beijing.