Wyden: Rejecting MFN at WTO Counterproductive
The top Democrat on the Senate Finance Committee, Sen. Ron Wyden of Oregon, criticized U.S. Trade Representative Jamieson Greer for the U.S.'s communique declaring that the era of most-favored nation tariff rates is over (see 2512160045). In a letter sent last week, Wyden said, "MFN has been integral to U.S. trade policy and a core principle of the international trading system for nearly 80 years, and it ensures that U.S. goods and services can compete on a level playing field in international markets without being targeted with unfair tariffs or regulations."
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He said that MFN provides stability for exporters in agriculture and manufacturing, and that manufacturers who import inputs also rely on that certainty.
He said WTO reform is needed, including addressing non-market policies, but "the rejection of MFN would be counterproductive to those efforts, as it would inject profound instability and uncertainty into the international trade environment."
Wyden said MFN principles are enshrined in law, and the president's use of emergency authority to dictate tariff rates for each country is "legally dubious."
The fact that he has abandoned MFN in practice "does not change the United States' position," Wyden argued. "Congress has constitutional authority over trade, and if there is going to be a change in this long-standing U.S. trade policy, it must come from Congress, not statements by USTR in Geneva."
The press office at USTR didn't respond to a request for comment.