Most-favored-nation status is the normal, non-discriminatory tariff treatment that the United States provides to all but a handful of its trading partners on a reciprocal basis. MFN for China is reviewed and debated every year by the U.S. House of Representatives.
This debate is scheduled for this week and will be an important test to see if American companies continue to be world leaders in an ever-shrinking global arena or will be dragged into the fall election demagoguery.
Earlier this month Congress recognized the fact that MFN does not provide special treatment for our trading partners by overwhelmingly approving legislation to change the term “most favored nation” to “normal trade relations” to more accurately describe this trading status.
Revoking MFN would set back, not advance, human rights. U.S. trade and the presence of U.S. companies support the entrepreneurial sectors of Chinese society, which have driven economic and political liberalization. American companies showcase core values, such as economic freedom, respect for the individual, adherence to the rule of law and fair business dealings. American companies also adhere to principles of good corporate citizenship by paying higher wages, providing benefits and providing better working conditions.
Illinois benefits greatly from continuing MFN for China.. China continues to be the fastest growing region for U.S. agricultural exports, which is one of Illinois’ top exports to China.
The way to promote human rights in China is to engage and pressure its leaders, not a trade war that will close China’s doors to democracy and human rights into the 21st Century.
MFN for China has provided the foundation for continued dialogue and cooperation between the United States and China on issues of vital national importance, including security, non-proliferation, human rights and trade.
Renewing our trading status with China benefits all Americans. It is our hope Congress will continue to support a bipartisan policy to renew MFN for China.
