Speech #990064603

In 1911 we terminated a bilateral trade agreement providing mostfavorednation tariff treatment to Russia because of the programs there. In 1982. some 70 years later. the administration suspended MFN to Poland after the Polish regime outlawed Solidarity and justified this action on the grounds that Poland failed to meet its special obligation under the GATT to increase imports in quantitative terms. Since 1974. the United States has denied MFN to the Soviet Union and other Communist countries that prohibit free emigration. The economic impact on South Africa of suspending MFN would probably be marginal because 50 percent of South Africas exports to the United States are goods on which the duty is zero. with or without MFN. It is estimated that a change in MFN status would affect about 20 percent of the South African exports to the United States.