Biden calls for an end to Russia's 'most favored nation' trade status

The U.S. President Joe Biden on Friday called for the revocation of Russia's "most favored nation" status, which would downgrade Russia as a trading partner and open the door to damaging new tariffs on Moscow over its military operation in Ukraine.

The European Union and the Group of Seven nations are expected to take the same step. Canada already removed Russia's most favored nation status last week.

In order to cancel permanent normal trade relations with Russia, Biden will need action from Congress. Specifically the House and Senate need to revoke Russia's classification as a member of the World Trade Organization.

Biden this week signed an executive order banning Russian oil imports. The U.S., EU and NATO countries have imposed sanctions on Russian businesses, its elite oligarchs and even Putin, while a growing number of major corporations have pulled their business out of the country.

If Russia's trade status is revoked, the Biden administration and Congress will be able to impose taxes on any goods Russia exports to the U.S.

Russia was the U.S.′ 26th-largest trading partner in 2019, according to the Office of the U.S. Trade Representative. Russian exports to the U.S. in 2021 totaled $29 billion, the majority of which comprised oil and gas products.

(CGTN)