Stop the Untouchables. Justice for Sergei Magnitsky.

Russia Bills Fall Victim to America’s Broken Political Process

Huffington Post

In spite of the fact that the U.S. economy continues to suffer and Europe is imploding, the U.S. Congress has left Washington for its traditional five-week summer recess. Among the plethora of legislation that Congress failed to address prior to its departure were two bills concerning Russia — the establishment of permanent normal trade relations (PNTR) and the ‘Magnitsky Act.’ This failure means that the review of these bills will not take place until next month at the earliest — when Congress has only eight working days — or perhaps even during its ‘lame duck’ session following the November elections. Many business stakeholders and politicians from across the country have expressed concern that the failure to pass the Russia PNTR legislation would have grave consequences for U.S. manufacturers and further complicate strained Russia/U.S. relations.

The PNTR bill is being addressed at a crucial time, with Russia becoming a member of the WTO on Aug. 22. Many U.S. companies believe that with more than 140 million consumers and a rapidly growing middle class, Russia will provide an expanding marketplace for U.S. goods and services. According to the President’s Export Council, U.S. exports to Russia rose by 40 percent in 2011 to around $11 billion, and it is projected to double within five years. Following its accession to the WTO, Russia will have to comply with WTO rules on reducing tariffs, applying nondiscriminatory treatment to imports, eliminating export subsidies and adhering to intellectual property rights and digital trade laws — areas that previously concerned U.S. businesses. As a founding member of the WTO, the US will not be required to make any trade adjustments.

The PNTR bill will also address the concerns of some policymakers in Washington by including additional provisions regarding the promotion of the rule of law in Russia. Some provisions advocate the specific protection of American investors, particularly supporting the claims of some investors in the Yukos Oil Company — once Russia’s largest company — that was dismantled and sold by the first Putin administration. Others encourage anti-bribery measures by promoting the expansion of civil society organizations in monitoring and reporting suspected instances of corruption. While major political concerns seem to have been addressed in the bill, U.S. business representatives still fear that the bill will not be passed into law before the presidential elections, putting American companies at a disadvantage in the Russian market.