Lincoln Chafee: “Today Senators Roth, Moynihan, and I, along with others on the Finance Committee, are introducing legislation to clarify…”

“Today Senators Roth, Moynihan, and I, along with others on the Finance Committee, are introducing legislation to clarify the meaning of most favored nation [MFN] trading status--a change I have advocated for some time. Over the past few years, MFN has gained notoriety as a special favor that the U.S. grants to other nations. Not true. Indeed, MFN is a misnomer if there ever was one. Rather, MFN refers to a centuries-old concept used by all trading nations--the concept that no nation shall be granted trade treatment less favorable than that granted to the most-favored-nation. In other words, no playing favorites! Every nation is to receive equal treatment when it comes to the terms of trade. Thus, the MFN concept represents the lowest common denominator of trade status. Over the centuries, this simple non-discrimination concept came to be known as most favored nation status. Frankly, that is unfortunate. That particular terminology has fostered the mistaken view that MFN is a special treatment granted only to a privileged few. Yet just the opposite is true: MFN, as the basic trading status between nations, is granted to virtually all nations with whom the U.S. trades.”