Since early 1993, North Korea has refused to allow inspections of its nuclear facilities by the International Atomic Energy Agency (IAEA). This is contrary to North Korea's obligations under the Nuclear Non-Proliferation Treaty and its 1992 safeguards agreement with the Agency. Following North Korean obstruction of an inspection in March 1994, the IAEA referred the issue to the U.N. Security Council. The Clinton Administration is set to propose that the Council act against North Korea, possibly including the imposition of sanctions. However, the opposition of China to sanctions and the ambivalent attitude of Russia has resulted in a decision by the Administration to propose initial action by the Council short of sanctions. Measures short of sanctions could end up as the totality of U.N. action.

While the United States accords most-favored-nation (nondiscriminatory) treatment to many foreign countries on the basis of bilateral trade treaties or agreements, and to many more by virtue of being a signatory of the General Agreement on Tariffs and Trade, MFN treatment is applied mostly as a matter of statutory policy generally to all trading partners except those whose MFN status has been suspended by specific legislation. Virtually all suspensions have been carried out under the mandate of the Trade Agreements Extension Act of 1951.