Answer to Question 1
The most-favored-nation principle requires that any preferential treatment granted to one country must be extended to all countries. The two exceptions are that members can lower tariffs to developing countries without lowering them for more developed countries, and that regional arrangements that promote economic integration are allowed. The Clinton administration decided to adopt the term normal trade relations (NTR) to replace MFN. It had two reasons for doing so. The public reason was that NTR was a more accurate description; if almost all countries receive such treatment, then the practice is normal rather than most favored. There was also a political reason. The administration was in a battle to secure permanent MFN status for China as part of the administration's agreement to allow China to join the WTO. President Clinton judged that it would be easier to sway public opinion and win the vote in Congress if the United States were perceived to be treating China normally, rather than providing it favorable treatment.
Answer to Question 2
b
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