Bipartisan Senate Bill Would Lift Title IV For Russia; Business Group Supports PNTR

BNA

A bipartisan group of senators June 12 introduced legislation that would terminate the application of Title IV of the Trade Act of 1974 to Russia, and the Business Roundtable the same day launched a 50-day campaign to urge Congress to approve permanent normal trade relations (PNTR) with Russia by the August recess.

Senate Finance Committee Chairman Max Baucus (D-Mont.), International Trade Subcommittee ranking member John Thune (R-S.D.), Foreign Relations Committee Chairman John Kerry (D-Mass.), and Armed Services Committee ranking member John McCain (R-Ariz.) unveiled the legislation, “To authorize the extension of nondiscriminatory treatment (normal trade relations treatment) to products of the Russian Federation.” The bill has not yet been numbered.

Normal trade relations with Russia currently are subject to an annual review under Section 402 of the Trade Act, known as the Jackson-Vanik Amendment, which was designed by lawmakers to link trade with human rights by monitoring Jewish emigration from the former Soviet Union.

The three-page bill terminating application of all sections in Title IV would allow the president to grant by proclamation PNTR for Russia. PNTR is required for U.S. firms to receive all of the benefits of the Russian World Trade Organization accession protocol.

In a June 12 briefing with reporters, the Business Roundtable expressed quiet confidence that the legislation would pass prior to the August recess so PNTR can be granted before Russia officially joins the WTO.

The group’s “50 Days for Trade” campaign includes a Russia PNTR action center, a daily “state spotlight” focusing on trade opportunities, targeted media outreach to all 50 states, stepped-up outreach by Business Roundtable chief executive officers, coordination of advocacy efforts with state governors, a national grass-roots outreach campaign, print and online advertising, as well as a national op-ed campaign.

Roundtable President John Engler released the results of a May 26-27 Winston Group poll that found 70 percent of Americans favored granting PNTR to Russia this summer.

Baucus, Kerry Plan to Combine Bills

Baucus and Kerry simultaneously unveiled their strategy of advancing human rights legislation along with the trade bill by adding the full text of the Sergei Magnitsky Rule of Law Accountability Act (S. 1039) as an amendment to the bill that would terminate Title IV of the Trade Act. The Magnitsky bill had been referred to Kerry’s Foreign Relations Committee.

Baucus acknowledged in a June 12 letter to four sponsors of the bill providing for sanctions—in the form of visa denials and asset freezes for human rights violators—that many lawmakers are rallying around the position that repeal of Jackson-Vanik for Russia must be accompanied by passage of the Magnitsky Act.

Baucus told the four senators sponsoring the act—Benjamin Cardin (D-Md.), McCain, Joseph Lieberman (I-Conn.), and Roger Wicker (R-Miss.)—that he would allow open debate and votes on germane amendments during the Finance Committee markup of the Russia PNTR-Magnitsky legislation. He also said he would urge the Senate majority leader to schedule time prior to the August recess for the Senate to debate and vote on the combined legislation.

Baucus added that he would work with his House counterparts in any conference to ensure that the final version of the legislation includes the Magnitsky Act in a form that is acceptable to its bipartisan co-sponsors.

Extension of MFN Tariffs Not Certain

Under WTO rules, Russia would not be required to grant all of its accession terms to the United States absent PNTR, which in international agreements is referred to as unconditional most favored nation (MFN) status.

Russia is expected to ratify the accession protocol on or before July 23 and become a full WTO member 30 days after ratification. Russian officials have said that they will not extend all the accession terms to the United States until PNTR is granted.

Currently, tariffs are covered by the 1992 U.S.-Russia Agreement on Trade Relations that provided for reciprocal MFN treatment of each others’ products.

Although Russia is expected to uphold the commitment and extend tariffs agreed to in the WTO accession protocol to the United States based on the agreement, a trade expert told reporters at the Business Roundtable briefing this is not certain.
He noted, moreover, that PNTR is critical for U.S. companies to benefit from the commitments in the WTO accession agreement related to intellectual property rights, sanitary and phytosanitary standards, investments, and dispute settlement, among other issues.
In addition to the Roundtable, numerous business groups expressed immediate support for granting PNTR to Russia, including the U.S.-Russia Business Council, which serves as the secretariat for the Coalition for U.S.-Russia Trade that has been in the forefront of lobbying efforts on the issue.
The National Foreign Trade Council, the National Association of Manufacturers, the Emergency Committee for American Trade, the Coalition of Service Industries, the Technology Industry Council, and the Distilled Spirits Council all issued statements that back PNTR and urge congressional passage of legislation that would approve it.

Kirk Gives Bill Warm Reception

U.S. Trade Representative Ron Kirk welcomed the introduction in the Senate of the bill to terminate the application of the Jackson-Vanik Amendment and authorize the president to extend PNTR to Russia.

“Passing this bill will ensure that U.S. businesses, ranchers, farmers, and workers will not be at a disadvantage in the Russian market compared to their global competitors,” Kirk said. “We will continue to work with Congress so that Americans can reap the full benefits of Russia’s WTO membership.”

A USTR spokesman said in an emailed statement that the administration priority is for the Congress to lift the Cold War-era Jackson-Vanik Amendment and authorize the president to extend PNTR to Russia, but democracy, human rights, and civil society are important components of the U.S. relationship with Russia.

“We will continue to work with Congress on how best to advance these important priorities,” the spokesman said.

Eight members of the Senate Finance Committee urged Baucus in a June 12 letter to work to address a number of outstanding issues with Russia, such as barriers to U.S. exports, corruption, and its support for the Syrian government.

The letter, spearheaded by the committee’s ranking member Orrin Hatch (R-Utah) and signed by Jon Kyl (R-Ariz.), Charles Grassley (R-Iowa), Olympia Snowe (R-Maine), John Cornyn (R-Texas), Pat Roberts (R-Kan.), Tom Coburn (R-Okla.), and Richard Burr (R-N.C.), said that satisfactorily addressing these issues is imperative before the Senate moves forward with legislative action.

“We believe it will be necessary to satisfactorily address these and other issues if Congress is to successfully navigate a path toward granting PNTR to Russia,” the senators wrote. “We hope you will work with us as we consider legislative options to address remaining concerns.”

For More InformationThe legislation can be found at: http://www.finance.senate.gov/legislation/details/?id=c7b50a1a-5056-a032-5231-0a45f92b7e1a.The letter from Baucus on the Magnitsky Act can be found at http://op.bna.com/itr.nsf/r?Open=rbri-8v7szq.The letter from Hatch and the other senators to Baucus can be found at http://op.bna.com/der.nsf/r?Open=palo-8v7tv9.The Business Roundtable website for its Russia PNTR campaign is http://pntr.businessroundtable.org/. unshaven girl payday loan https://zp-pdl.com https://www.zp-pdl.com hairy women