Posts Tagged ‘pntr’
Committee Markup: Russia’s WTO Accession and Granting Permanent Normal Trade Relations
Opening Statement of Ranking Member Sander Levin
Committee Markup: Russia’s WTO Accession and Granting Permanent Normal Trade Relations
(Remarks as Prepared)
Since our hearing on this issue in June action within the control of Congress has improved. Those of us who have been pressing for a bill that seeks to strengthen enforcement are pleased that our efforts came to fruition in the bipartisan outcome of the Senate Finance Committee’s markup last week.
Action within the control of Russia – most directly that related to Syria – has unfortunately not changed enough.
As we know, failing to grant PNTR does not prevent Russia from joining the WTO. They are scheduled to do so on Aug. 22 and our government has agreed to their accession agreement. Failing to act only prevents U.S. companies, workers, and farmers from gaining the benefits of Russia’s WTO membership.
There are serious outstanding trade issues we have with Russia – ranging from IPR enforcement to the rule of law. Russia’s WTO membership will help us to make progress on some of these issues. At the same time, Russia’s accession will not, by itself, fully solve these problems. We will need to continue to work actively to address these issues at every opportunity.
For example, without PNTR, if Russia would decide to massively subsidize a key industry, and those subsidies harm U.S. exporters, there is nothing we can do about it today. But with PNTR, we would be able to challenge those subsidies and either remove them or face WTO-sanctioned retaliation by the United States.
The bill before us today is much improved on enforcement. Among other things, it requires the Administration to report on Russia’s implementation of all of its WTO commitments and to describe the Administration’s plan to address any deficiencies. It establishes a new mechanism to gather and report information on bribery and corruption in Russia. And it requires the Administration to negotiate new agreements to address longstanding issues with IPR enforcement and barriers to U.S. agricultural exporters.
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OVERNIGHT MONEY: Russia bill teed up for House panel’s approval
Opening trade with Russia: The House Ways and Means Committee will mark up and, most likely, approve bipartisan legislation on Thursday to grant permanent normal trade relations (PNTR) to Russia.
Panel Democrats and Republicans agreed to push through a trade bill that mirrors the one approved last week by the Senate Finance Committee minus the human rights legislation.
That Senate bill got unexpectedly unanimous support for its measure that included the Magnitsky human-rights bill, which would punish Russian officials involved in the death of whistleblower Sergei Magnitsky, a lawyer who died in prison after reporting government corruption.
The House is expected to tack on the human-rights legislation in the Rules Committee before the measure heads to the floor.
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Business groups keep up pressure to pass Russia trade bill
Business groups are optimistic that Congress can clear legislation to normalize trade relations with Russia by next week, but intend to keep up the pressure until it’s done.
The Business Roundtable and the U.S. Chamber of Commerce said Wednesday that repealing Jackson-Vanik and extending permanent normal trade relations to Moscow would provide a boost to the sagging economy.
The bill is feeding off the momentum from the Senate Finance Committee, which unanimously approved a measure last week that combines the repeal language with the human-rights legislation that would punish Russian officials involved in the death of whistleblower Sergei Magnitsky, a lawyer who died in prison after reporting government corruption.
Bill Miller, senior vice president of government affairs of BRT, called last week’s 24-0 vote “unprecedented” and is hoping that the House Ways and Means Committee will approve its bipartisan bill on Thursday and send it to the floor early next week.
“It looks like we are very close to getting Russia PNTR done,” Milller told reporters.
Passage in the House would give the Senate a chance to clear the bill for President Obama’s signature before Russia joins the World Trade Organization on Aug. 22.
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Obama lets Russia get away with murder
Last Thursday, the governments of Russia and China vetoed yet another United Nations Security Council resolution that would have put sanctions on the crumbling Syrian regime of Bashar Assad. The two authoritarian powers, White House spokesman Jay Carney said, “are on the wrong side of history.”
This term has become a favorite expression of the Obama administration. In the past year, both Secretary of State Clinton and UN Ambassador Susan Rice have used the language to describe Russian and Chinese intransigence against sanctioning Assad.
Correct as the description may be, however, it is trite coming from an administration that has lobbied hard to water down legislation aimed at putting pressure on Assad’s most important friend: Russian President-for-life Vladimir Putin. Indeed, while it continually castigates the Russians for opposing sanctions on Assad, it appears that the Obama administration, too, will be “on the wrong side of history.”
Last week, the Senate Finance Committee passed the Sergei Magnitsky Rule of Law Accountability Act, named for the brave Russian lawyer who was arrested, tortured and killed by Russian authorities after exposing a $230 million tax fraud scheme perpetrated by the Kremlin. Magnitsky was denied medical treatment and subjected to worsening conditions and ever more squalid cells. He conveniently passed away in pretrial detention on Nov. 16, 2009, eight days before the one-year mark when the Russian government would have been forced to either try or release him.
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Russia set to join World Trade Organization on Aug. 22
The countdown is on for Congress to normalize trade relations with Russia.
Moscow officially told the World Trade Organization (WTO) on Monday said it has ratified the accession package and is set to become the 156th member of the trade group on Aug. 22.
U.S. Trade Representative Ron Kirk said the “action marks a significant point in the evolution of the WTO and the global trading system.”
“Congress should continue to work on legislation regarding Jackson-Vanik and permanent normal trade relations for Russia so American businesses, workers and creators have access to the same benefits from Russia’s membership that their foreign competitors have.”
The House Ways and Means Committee is expected to hold a markup this week on a measure to repeal the Jackson-Vanik provision, an obsolete Cold War-era amendment that needs to be removed to normalize trade relations with Russia.
The House measure mirrors the language approved last week by the Senate Finance Committee, minus the human-right legislation that Chairman Max Baucus (D-Mont.) wrapped into the bill.
The so-called Magnitsky bill is expected to be tacked onto the House version in the Rules Committee before the bill heads to the floor.
Then the bill, which must pass the House first, would head to the Senate for clearance for President Obama’s signature.
Melding the trade and human rights bills has been opposed by the Obama administration and House Republicans but there was growing support on both sides of the Capitol to including the bill that would apply visa and financial sanctions on Russian officials involved in the death of whistleblower lawyer Sergei Magnitsky.
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Russian Ambassador Sergey Kislyak: On normal trade relations and the deficit of normalcy
Russia is about to formally enter the World Trade Organization. The State Duma and the Federation Council have both approved ratification documents, which were signed by the president of the Russian Federation on July 21, 2012. In August our country will become a full-fledged member of the WTO.
It took Russia 18 long years of intensive negotiations to settle all issues with the members of this global trade bloc. Accession to the organization is important for Russia as the largest economy outside the framework of the WTO. It is also potentially important for bilateral trade and economic cooperation with the United States.
To fully enjoy the benefits of Russia’s accession to the WTO, the United States will have to repeal the Jackson-Vanik amendment — a Cold War relic that used to bind bilateral trade to emigration restrictions in the former USSR. Failure to remove this obstacle will pose a problem for both Russian and American businesses. And, most probably, American companies will suffer more than ours.
But should we really have to measure who will suffer the most damage? Wouldn’t it be better to seek truly normal relations? While our countries are slowly moving in the right direction with regard to trade, political relations are still fragile and vulnerable to what I would call an extension of Cold War-era thinking.
The U.S. Congress is in the process of considering Permanent Normal Trade Relations, or PNTR, with Russia. This is something that should be welcomed, especially after so many years of absence of normalcy in our bilateral trade. In the meantime, the draft laws to achieve normalcy are bundled on Capitol Hill with legislation that has nothing to do with trade and would in fact deny normalcy in the relations between our countries. The so-called Magnitsky bill seems to be part of that bundle.
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Optimism grows Russia trade bill will pass before August recess
Optimism is rising among lawmakers and trade advocates that Congress can pass a Russian trade bill before the August recess.
The bill to normalize trade relations with Moscow, which appeared hopelessly stalled before a Senate Finance Committee markup, found new life after winning unanimous support among panel members following an agreement crafted by Chairman Max Baucus (D-Mont.) and top Republican Orrin Hatch of Utah.
While actions last week — moving the joint trade and human rights bill through Senate Finance and locking in a bipartisan deal in the House — provide greater hope that Congress can get a bill to President Obama’s desk before Russia joins the World Trade Organization next month, lawmakers are running short on time.
“I remain confident this will get done by the August recess,” Christopher Wenk, head of international policy at the U.S. Chamber of Commerce told The Hill on Friday.
“The Chamber won’t let Congress leave town without getting it done.”
The broad support in the Senate Finance Committee for a bill that combines the repeal of the 37-year-old Jackson-Vanik provision to grant permanent normal trade relations (PNTR) with a measure that punishes Russian officials involved in the death of whistleblower lawyer Sergei Magnitsky seemed to simultaneously surprise trade watchers and pave the way for a final resolution.
Although the chances for the bill to clear Congress are looking up, and the measure represents a bright spot amid the legislative logjam in Congress, there are no guarantees, supporters caution.
“Based on what I’ve been hearing, I wouldn’t say that they’re [lawmakers] confident about getting it done before the August recess,” said Ed Gerwin, a senior fellow for trade and global economic policy at Third Way.
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Senate Finance poised to approve Russia trade bill
Senators were poised Wednesday to clear the first hurdle to extend permanent normal trade relations to Russia, but plenty of uncertainty remains.
The Senate Finance Committee is expected to easily approve a measure combining a repeal of Jackson-Vanik, an obsolete Cold War-era provision, along with a human-rights measure that would punish Russian officials involved in the death of lawyer Sergei Magnitsky, who died in prison.
“By enacting PNTR together with the Magnitsky bill, we are replacing Jackson-Vanik with legislation that addresses the corruption and accountability issues that Russia confronts today,” Senate Finance Chairman Max Baucus (D-Mont.) said.
The show of bipartisan support — Baucus and ranking member Orrin Hatch (R-Utah) hammered out the compromise — could boost the bill’s chances of getting through Congress before lawmakers leave for a month-long August recess.
Russia is on track to join the World Trade Organization next month. All that is left for its accession is for President Vladimir Putin to sign the package, which passed through Russia’s upper chamber on Wednesday. Once Putin signs, the clock begins ticking, and Russia will become a member of the WTO within 30 days.
Still, there are plenty of pieces in play with no resolution in sight.
Lawmakers are divided over whether to pass a clean measure repealing the 1974 Jackson-Vanik amendment, while also holding Russia accountable for what lawmakers say is a dismal human-rights record.
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Senate Finance Reports Measure on PNTR For Russia, Moldova; Magnitsky Act Included
Key Development: Magnitsky bill included, vote is unanimous.
Next Steps: Kirk, Baucus, Camp to meet July 19.
The Senate Finance Committee July 18 unanimously reported legislation designed to allow the president to grant permanent normal trade relations (PNTR) to Russia and Moldova.
The bill would also replace human rights sections of the Trade Act of 1974 with provisions, named after deceased tax attorney Sergei Magnitsky, targeting corrupt government officials in Russia and elsewhere.
In his opening remarks, Chairman Max Baucus (D-Mont.) noted that the measure will make permanent the normal trade relations the United States already has had with Russia for the past 20 years and should double U.S. exports to Russia in five years.
The opportunities for increased trade with Russia are related to the massive Eurasian country joining the World Trade Organization in August after a 19-year accession process. The upper house of the country’s legislature July 18 approved the WTO accession package (see related report).
Baucus said hundreds of companies and trade associations have come out in favor of PNTR, as well as U.S. and Russian Jewish groups, including the National Conference on Soviet Jewry and the American Israel Public Affairs Committee.
Section 402 of the Trade Act, the so-called Jackson-Vanik Amendment, requires an annual review of respect for emigration rights that was originally intended to support Jewish emigration from the former Soviet Union. The bill would terminate the application of this section along with the others in Title IV.
The annual review constitutes a condition according to WTO rules and is therefore at odds with the organization’s core principle of unconditional most favored nation (MFN) status, which is the term for PNTR used in international treaties. Absent MFN, Russia is not required to grant the terms of its accession package to the United States and U.S. companies.
Baucus noted that Moldova is the only WTO member with which the United States does not have permanent normal trade relations. “Like Russia,” Baucus said, “Moldova has allowed freedom of emigration for many years, and Moldova joined the WTO in 2001.”
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