Question

The "most favored nation clause" in U.S. trade agreements means that

Question 7 options:

a third country can have the same tariff reductions that the U.S. negotiates with another country.


the U.S. has wide discretion to use on tariffs and quotas whenever it is demonstrated to be "in the national interest."


the U.S. is allowed to give preferential treatment to some countries over others when tariff reductions are negotiated.


the U.S. is allowed to use other barriers to trade, not just quotas and tariffs.

Answer 1

Answer:

a third country can have the same tariff reductions that the U.S. negotiates with another country

Answer 2

Answer:

a third country can have the same tariff reductions that the U.S. negotiates with another country.

Explanation:

The most favored nation is a clause that the United States sets on their economic agreements that states that the benefits in tariffs that a nation negotiaties with the United States shall be also offered to the other nations that are members of the World Trade Organization (WTO),  this is in order to create an equal treatment of other countries members of the WTO that do not have the same bargain power as the big countries.