"Most-favored-nation" (MFN) status entitles the country to which it has been granted to the same advantages that have been extended by granting country to any other country; MFN treatment, consequently, means in fact: nondiscriminatory, equal treatment. The United States extends the MFN treatment in foreign trade to all countries except to most Communist countries. Generally, MFN status can be granted by the United States to Communist country only if the latter's emigration policy is substantially nonrestrictive. Under this procedure, in effect since 1975, MFN status has been extended to Romania, Hungary, and China, which together with the earlier Communist MFN beneficiaries, Poland and Yugoslavia, are the only Communist countries to which the United States accords the MFN status.
What is Most-Favored-Nation Treatment? -- United States MFN Policy in Foreign Trade -- Denial of the MFN Treatment to Communist Countries -- Current Application of the MFN Treatment.
Vladimir N. Pregelj, Specialist in International Trade and Finance, Economics Division
CRS 87-241 E
"March 20, 1987."
SuDoc# 14. 18/3
