The U.S has granted China permanent most favored nation treatment (normal trade relations) This means that the tariff schedules which apply to U.S imports from china ?
Correct answer: C. have tariff rates that are identical to the rates that apply to other countries to which the U.S grants most-favored nation treatment
- A. have tariff rates equal to zero suggesting a free trade policy for the United States
- B. have lower tariff rates than the rates that apply to any other country sending goods to the United States
- C. have tariff rates that are identical to the rates that apply to other countries to which the U.S grants most-favored nation treatment
- D. have lower tariff rates than the rates that apply to other countries to which the U.S grants most favored nation treatment
Explanation
Most-favored-nation treatment means China receives the same normal tariff schedule as other countries granted that status, not a uniquely lower or zero tariff. The term therefore refers to nondiscriminatory treatment among MFN trading partners.
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