[Congressional Record Volume 143, Number 112 (Friday, August 1, 1997)]
[Extensions of Remarks]
[Page E1597]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               H.R. 2316

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                          HON. PHILIP M. CRANE

                              of illinois

                    in the house of representatives

                        Thursday, July 31, 1997

  Mr. CRANE. Mr. Speaker, today I am introducing bipartisan legislation 
that would change the terminology used in U.S. trade statutes from most 
favored nation [MFN] to normal trade relations [NTR] in order to more 
accurately reflect the nature of the trade relationship in question. 
This legislation would correct a misnomer under U.S. law. the term 
``most favored nation'' has been quite misleading because it has 
implied that we were extending benefits greater than the normal 
benefits we extend to our trading partners under the World Trade 
Organization. However, in extending MFN treatment, we have been doing 
no more than extending the same benefits we extend to other trading 
partners.
  Specifically, in the context of U.S. tariff legislation, MFN 
treatment means that the products of a country given such treatment are 
subject to lower rates of duty--found in column 1 of the Harmonized 
Tariff Schedule [HTS] of the United States. Products from countries not 
eligible for MFN treatment under U.S. law are subject to higher rates 
of duty--found in column 2 of the HTS. Under current United States law, 
only six countries are subject to column 2 treatment: Afghanistan, 
Cuba, Laos, North Korea, Serbia and Montenegro, and Vietnam. Every 
other country in the world is subject to either conditional or 
unconditional MFN treatment, or to even more preferential rates than 
MFN under free-trade agreements. Accordingly, we should make clear to 
the American people what this treatment really is: merely normal.

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