The Emirates called for strengthening the international humanitarian response and providing urgent relief to those in need
mena4 hours ago
President Joe Biden announced Friday the US will dramatically downgrade its trade status with Russia as punishment for its invasion of Ukraine and also ban imports of Russian seafood, alcohol and diamonds.
The broad trade shift, which revokes the “most favoured nation” status for Russia, is being taken in coordination with the European Union and Group of Seven countries.
“The free world is coming together to confront Putin,” Biden said from the Roosevelt Room of the White House.
Stripping the most favoured nation status from Russia would allow the US and allies to impose higher tariffs on some Russian imports, increasing the isolation of the Russian economy.
Biden’s changes on Russia’s trade status come as bipartisan pressure has been building in Washington to revoke what is formally known as “permanent normal trade relations” with Russia. Ukrainian President Volodymyr Zelenskyy pressed the US and allies to take the action against Russia in remarks to Congress over the weekend. It follows days after the Biden moved to ban imports of Russian oil and gas products.
This week’s moves are the latest for the sanctions that have crippled the Russian economy and a sign that the US and its allies will continue to use their financial heft to retaliate against Russian President Vladimir Putin. The other measures include the freezing of central bank assets, limits on exports and sanctions against Russian oligarchs and their families. These financial tools have led to the Russian ruble losing 76% of its value against the US dollar over the past month, which has caused destructive inflation that could erode Putin’s ability to wage a prolonged war in Ukraine.
Biden, after initially slow-walking congressional attempts to take the trade action against Russia, was embracing lawmakers’ efforts to do just that on Friday.
The earlier sanctions on imports of Russian oil, gas and coal cut off about 60% of US imports from the country.
Most favoured nation status has been a baseline for global trade, ensuring that countries within the World Trade Organization are treated similarly. Some countries in the WTO have special privileges due to their status as developing economies. Russia would join the ranks of Cuba and North Korea by not having MFN status from the US.
ALSO READ:
The revocation carries mostly symbolic weight. Because Russian imports into the US are primarily natural resources, they would generally face little to no increase in their tariffs because of the lost status, Ed Gresser of the Progressive Policy Institute in Washington, said in an online post.
Instead of the current tariff rate, buyers of Russian goods would pay rates established under the Smoot-Hawley Tariff Act of 1930, which disrupted trade during the Great Depression. This would still be zero for uranium, rhodium, palladium, silver bullion and king crabs. But the import tax would shoot up for unwrought aluminium, plywood, semi-finished steel and diamonds, among other products.
On Monday, Democrats on the powerful House Ways & Means Committee posted, then removed, an announcement on a bipartisan bill to ban Russian oil imports and slap further trade sanctions on the country, according to an aide, because of pushback from the White House against acting before Biden had coordinated with allies and reached a decision on both matters. The House voted Wednesday on a narrower bill to ban Russian energy imports after Biden instituted the ban by executive order.
Canada was the first major US ally to remove the most favoured nation status for Russia last week.
Biden’s action was first reported by Bloomberg News.
The Emirates called for strengthening the international humanitarian response and providing urgent relief to those in need
mena4 hours ago
Photonics is the study of light and has several applications including LED, VR, holograms, high-speed internet and solar panels among other things
uae4 hours ago
A delegation from Egypt arrived in Israel on Friday hoping to revive the truce negotiations
mena4 hours ago
The decision aims to protect the safety and security of pilgrims
gulf5 hours ago
They have been carrying out rescue operations for the last four years, drawing on their extensive experience in saving people from desert terrain
uae6 hours ago
Dubai Amateur 17-year-old Oscar Craig continues to showcase his impressive form with third-round level par 72 at Saadiyat Beach Golf Club
sports6 hours ago
The tragic incident led to the death of a number of innocent people from Yemen
mena6 hours ago
Alongside regional leaders, US Secretary of State Antony Blinken will attend the meetings
world6 hours ago