Posts Tagged ‘jackson-vanik’
Senate Panel Advances Trade Bill With Russia
A Senate committee advanced a measure on Wednesday to normalize trade relations with Russia for the first time since the fall of the Soviet Union while also sanctioning officials implicated in human rights abuses.
With the measure passed in the Senate Finance Committee on a unanimous vote, lawmakers dispensed with two decades of resistance to lifting cold war-era restrictions under the so-called Jackson-Vanik law. But senators insisted on the human rights sanctions to send a message to President Vladimir V. Putin as Moscow under his new term cracks down on dissent.
The trade move has been a priority of President Obama’s as he seeks to improve Russian-American relations, but his administration unsuccessfully lobbied against adding the sanctions, arguing that it was already taking action on human rights. The sanctions have provoked deep anger in Moscow at a time when Mr. Obama has been seeking help from Mr. Putin in resolving the crisis in Syria.
Russian lawmakers visited Washington last week to lobby against the sanctions, and on Tuesday, Moscow repeated its plan to respond tit for tat.
“There is a whole range of situations in the U.S. where senior and other officials of this country’s ministries and agencies are responsible for systematic and severe human rights violations,” Sergei Ryabkov, Russia’s deputy foreign minister, told the Interfax news agency.
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US Senate Committee Ties Jackson-Vanik to Magnitsky Bill
The United States Congress finance committee has linked a draft bill on repealing the Jackson-Vanik Amendment and a change in Russia’s status to a free trade nation to the draft “Magnitsky bill,” the committee said on Wednesday.
A Senate vote on the joint law will take place in the next few hours.
“Committee Chairman Baucus released a modified mark of his bill to establish permanent normal trade relations with Russia and remove Russia from the 1974 Jackson-Vanik amendment,” a source in Washington told RIA Novosti. “The mark includes the Magnitsky Act, as passed by the Senate Foreign Relations Committee.”
The text of the joint bill also has “small alterations,” on electronic trade, the source added.
The introduction of the combined bill to the committee is a technicality, as Baucus presented his draft bill to the Senate on July 12, and on July 14 a source in the committee administration confirmed to RIA Novosti that it would be this joint bill which would be put to the vote on Wednesday.
Several senators have already expressed strong support for the bill.
The new bill is a response to the demands of a majority of lawmakers for a review of legislation affecting trade and human rights issues, including some laws affecting trade with Russia.
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Russia offers economic opportunity
U.S. exports to Russia total more than $9 billion per year. Repealing Jackson-Vanik and establishing PNTR could double that number in just five years, according to one recent study. That could mean thousands of new jobs across every sector of our economy. With the Russian economy’s impressive growth — it’s expected to outgrow Germany’s by 2029 — the long-run gains would be even greater.
Make no mistake, Russia is not without its problems — and they are stark in the foreign policy arena. Its support for the regimes in Syria and Iran remains an obstacle.
The death of anticorruption lawyer Sergei Magnitsky also highlights troubling human rights problems. A bill known as the Magnitsky Act, sponsored by our colleagues Sens. Ben Cardin (D-Md.) and McCain , aims to address these human rights issues by sanctioning those responsible for Magnitsky’s death. It’s a crucial part of the debate surrounding our relationship with Russia — and should be approved together with PNTR.
It is important to understand that this debate is not a choice between improving conditions in Russia and increasing U.S. exports. These are not opposing goals — indeed, they support each other.
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In Trade Deal With Russia, U.S. Plans Sanctions for Human Rights Abuses
In the two decades since the end of the cold war, the United States has extended its economic reach to the far corners of the old Communist world, establishing full-fledged trade ties with the likes of Ukraine, Armenia and Kyrgyzstan. Even still-Communist nations like China and Vietnam have been granted full trading status. But not Russia.
That seems about to change. For the first time since the fall of the Soviet Union, a bipartisan coalition in Congress has agreed to normalize trade relations with Russia, the onetime adversary in the long struggle between capitalism and communism. But at a time of renewed tension with Moscow, lawmakers have decided to grant the status with one large caveat — that Russian officials be held responsible for human rights abuses.
Legislation moving through the House and Senate with support from both parties would lift restrictions imposed in the 1970s under the so-called Jackson-Vanik law, permanently establishing normal trade relations with Russia, one of just a handful of nations left in the world still denied them. In doing so, Congress would potentially double Russian-American trade and fulfill a goal that eluded Presidents Bill Clinton and George W. Bush.
Yet in imposing sanctions for human rights violations, lawmakers are defying not just the Kremlin of Russia’s president, Vladimir V. Putin, but also President Obama, who while embracing the normalization of trade lobbied against mixing the issues. In effect, foreign policy experts said, the legislation represents a judgment by Congress that in his effort to repair relations with Moscow, Mr. Obama has not paid enough attention to freedom and democracy.
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The Sergei Magnitsky bill
When Congress takes the lead on foreign policy the result is not usually optimal. Some worry that America’s first branch of government is about to add to its dubious record with passage of the Magnitsky bill – named after the Russian lawyer who died in a Moscow jail in 2009 after having exposed massive corruption.
There are reasons to worry Congress may be overreaching. But the bill should not be discarded. Russia may be an indispensable, if frequently obstructive, international partner. But at home its government sometimes behaves like a criminal enterprise. The treatment of Sergei Magnitsky is one such instance.
There are two main objections to the bill in its latest form. Neither is insuperable. The first concerns the need to accommodate Russia’s recent entry into the World Trade Organisation, which is a White House priority in what remains of this Congress. In order to comply with WTO rules, the US has to scrap the 1974 Jackson-Vanik law, which linked the Soviet Union’s trade access to human rights benchmarks, notably its treatment of Jewish “refuseniks”. The law lost its purpose after the USSR’s collapse in 1991.
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A chance to stand up to Putin
In November 2009, the lawyer Sergei Magnitsky was beaten to death by guards after 358 days in “preventive custody” in Moscow. His offence had been to uncover a massive tax fraud scheme stretching high into the Russian government. The case became a cause célèbre, Exhibit A of the lawlessness and corruption that plagues the country’s business life.
Now, almost three years later, in a rare display of bipartisanship, the US Congress is moving to pass the Sergei Magnitsky Rule of Law Accountability Act, denying visas to Russians implicated in human rights abuses and freezing their financial assets. Congress is absolutely right to pursue such legislation. But it is essential it does so in the right way. What would be wrong would be – as some on Capitol Hill demand – to link the passage of the Magnitsky Bill directly to the repeal of the Jackson-Vanik amendment.
The latter is an obsolete vestige of the Cold War, dating from 1974 and imposing trade restrictions designed to force Moscow to accelerate the emigration of Soviet Jews. That problem no longer exists, and since 1990 Jackson-Vanik has been waived annually. It is time for it to go for good. Russia is about to join the World Trade Organisation. Not only will membership bind it further into a global system of rules and laws. If the US persists with Jackson-Vanik, it will itself be in violation of WTO rules. But to insist that Jackson-Vanik be replaced by the Magnitsky bill is the wrong course, playing into President Putin’s argument that Washington and the West are viscerally and irredeemably anti-Russian.
The Magnitsky Bill stands on its own merits. Yes, objections can be made. It is, by any standard, interference in the internal affairs of another country. Understandably, the Obama administration, anxious not to jeopardise Russian co-operation over international problems from Iran to Syria, is extremely wary of it. And who will decide which individuals are targeted – the State Department, or Congress? The measure could even prove counter-productive, further poisoning business practices in Russia as feuding factions and oligarchs seek to have each other placed on Washington’s blacklist.
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Time running out for Russia trade bill
The Russian parliament is expected to vote to join the World Trade Organization (WTP) on Tuesday, giving Congress a short window to either adopt trade legislation or risk seeing U.S. companies trail competitors in the world’s ninth-largest economy.
Establishing normal trade relations with Russia is a no-brainer for U.S. businesses eyeing a vast export market, but lawmakers in the House and Senate are still debating how to do that while retaining leverage over the country on human rights.
Once the Russian parliament ratifies accession to the world trade body, Russia will automatically become a WTO member within 30 days. If the vote happens Tuesday, it means Congress would have to act before the August recess to prevent U.S. companies from losing out.
“The [Obama] administration has consistently urged Congress to terminate application of the Jackson-Vanik amendment and authorize the president to extend permanent normal trade relations to Russia before it becomes a WTO Member,” a spokesperson for the Office of the U.S. Trade Representative told The Hill via e-mail.
Doing so would “ensure that American workers and businesses will be able to reap the full benefits of Russia’s WTO membership and to put them on a level playing field with their competitors in Latin America, Europe and Asia,” the spokesperson said.
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Supporting human rights in Russia should be a core strategic interest for US
On Tuesday, July 10, the Russian Duma will vote on ratification of the agreement for Russia’s entry into the World Trade Organization (WTO). Policymakers in both countries view Russia’s entry as a foregone conclusion. The question before Congress therefore is how best to pressure Russia to respect human rights following its repeal of the Jackson-Vanik amendment.
Passed in 1974, Jackson-Vanik tied favorable trade to the freedom to emigrate from the Soviet Union. It provided a foundation for Cold War human rights advocacy. The Sergei Magnitsky Rule of Law Accountability Act, approved unanimously by the Senate Foreign Relations Committee on June 26, was meant to fill the void left by lifting Jackson-Vanik.
Named after a Russian anti-corruption lawyer tortured and killed in prison in 2009 after he uncovered a $230 million embezzlement scheme, it would sanction Russia’s worst human rights violators by denying them U.S. visas and freezing their assets in U.S. banks.
However, at the last minute, in order to assuage the Kremlin, the Committee chose not to single out Russia and passed a watered-down version of the bill, applying it to human rights abusers worldwide. Lost is the original purpose of the Act—to show ordinary Russians that the United States wants to see a better Russia—one that does not abuse its citizens and one that can be a strong partner to the United States, an ally with whom we share values.
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Magnitsky bill and Russian national interests
Valdaiclub.com interview with Nikolai Zlobin, Senior Fellow and Director of the Russia and Asia Programs at the World Security Institute in Washington, D.C., member of the Valdai Discussion Club.
What do you think is the likelihood that President Obama will veto the bill on visa sanctions against the Russians who are allegedly involved in human rights violations (the Magnitsky list)?
Vetoing this bill by the president of the United States is highly unlikely. The White House and the State Department have made an administrative decision with regard to this issue a long time ago. This list has been used by the State Department for a fairly long time, and these people are banned from entering the United States.
Many in the U.S. administration are saying that this move is more pro-Russian than anti-Russian. Vladimir Putin and Dmitry Medvedev have on many occasions stated the need to combat corruption. Therefore, the Americans are thus helping them by not letting in people who committed crimes in Russia and are seeking refuge abroad. These people will be unable to leave Russia and won’t be allowed to transfer their money, families or property to the United States.
If President Obama vetoes this bill, it will trigger a violent reaction in Congress, primarily among the Republicans, who are seeking to discredit his Russia policy, because he and his administration spearheaded this list. If Obama vetoes it, it will cause a huge wave of criticism.
Do you think the Magnitsky List will be expanded? When will the names on this list be disclosed?
Each country can decide who and when can cross its borders without providing any explanations. The fact that the list is being adopted by Congress as legislation makes it more stable. Otherwise, it could have been modified to accommodate internal instructions from U.S. officials. This will not happen to the Magnitsky List.
Once Congress passes the bill, they will no longer be able to keep the names on this list secret. Under the Freedom of Information Act, any journalist, including from Russia, will be able to request the names.
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To learn more about what happened to Sergei Magnitsky please read below
- Sergei Magnitsky
- Why was Sergei Magnitsky arrested?
- Sergei Magnitsky’s torture and death in prison
- President’s investigation sabotaged and going nowhere
- The corrupt officers attempt to arrest 8 lawyers
- Past crimes committed by the same corrupt officers
- Petitions requesting a real investigation into Magnitsky's death
- Worldwide reaction, calls to punish those responsible for corruption and murder
- Complaints against Lt.Col. Kuznetsov
- Complaints against Major Karpov
- Cover up
- Press about Magnitsky
- Bloggers about Magnitsky
- Corrupt officers:
- Sign petition
- Citizen investigator
- Join Justice for Magnitsky group on Facebook
- Contact us
- Sergei Magnitsky
