Permanent Normal Trade Relations (PNTR)
Part of: Prelims and GS-II International relations
Context: U.S. and others in the Group of Seven (G7) advanced economies would end normal trade relations, known as Permanent Normal Trade Relations (PNTR) with Russia as it pursues its invasion of Ukraine.
- PNTR is USA’s version of Most Favored Nation (MFN).
- In international trade, MFN status (or treatment) is awarded by one nation to another.
- Most Favoured Nation status designation means two countries have agreed to trade with each other under the best possible terms: low tariffs, few barriers to trade and the highest possible imports allowed.
- A nation with MFN status will not be discriminated against and will not be treated worse than any other nation with MFN status.
- In USA’s case, granting of permanent normal trade relations status is automatic, except where specifically denied by law.
- G7 is a forum of the world’s seven largest developed economies whose government leaders meet annually to discuss international economic and monetary issues.
- It is an informal gathering.
- G-7 has its roots in an informal meeting of the finance ministers of France, West Germany, the U.S, Great Britain, and Japan (the Group of Five) in the wake of the 1973 oil crisis.
- With addition of Canada & Italy, first G7 was held in 1976
- In 1998, Russia was added to form G8. However, in 2014, Russia was suspended from the group after the annexation of Crimea and tensions in Ukraine.
- Since then, meetings have continued within the G7 process
- It does not have a permanent headquarters.
- The decisions taken by leaders during annual summits are non-binding.
News Source: TH