Posts Tagged ‘WTO’
Mixing Human Rights and Trade Relations: Dealing with Today’s Russia
After trying for some two decades, Russia will join the World Trade Organization, or WTO, later this month. For the Kremlin, it’s a hugely symbolic moment. Russia has joined the club.
Russia’s entry to the WTO should make it easier for nations to trade with them. By some estimates, the US could double its exports to Russia in the next five years.
But there’s a catch: A Cold War law remains on the books, which prevents normal trade relations between the two countries. It’s a law that many US businesses, ranchers and farmers want removed immediately. American Unions want Congress to take a tougher stance with Russia. The World’s Jason Margolis has more.
To understand why US companies won’t be able to trade freely with Russia anytime soon, we need a brief history lesson.
In the 1970’s, Soviet Jews, many of whom faced persecution, were prevented from emigrating from the USSR. Svetlana Boym was one of them. She’s now a professor of Slavic and Comparative Literature at Harvard University.
BOYM: “I was born in Leningrad, now St. Petersburg. I came to the United States as a refugee. The reason I was able to enter the United States and exit the former Soviet Union was thanks to the Jackson-Vanik Amendment.”
The “Jackson-Vanik Amendment” was passed by Congress in 1974. The Amendment denied equal trading rights to countries restricting emigration. It was designed to put pressure on Soviet leaders to open their borders. Many argue it worked. Some 1.5 million Soviet Jews were able to leave.
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Russia’s Failure to Protect Freedom of Religion
Has Russia truly changed its ways on human rights? Certainly its new law restricting public protests fuels grave and widespread concerns. Moreover, in at least one key area, religious freedom, Russia has not changed in many respects. This assessment should provoke serious discussion as the United States faces decisions about its relationship with its former Cold War foe.
Russia is poised to enter the World Trade Organization later this month. To reap trade benefits from its entry, the United States would have to exempt Russia from the trade restrictions of the 1974 Jackson-Vanik amendment, which includes Russia due to its past restrictions on the right to emigrate during the Soviet period.
What should the United States do? It should continue to hold Russia accountable.
Over the past decade, the Kremlin has exploited legitimate security concerns about violent religious extremism by restricting the rights of nonviolent religious minority members. Its major tool is an extremism law. Enacted in 2002, the law imposes sanctions on religious extremism, which it defines as promoting the “exclusivity, superiority, or inferiority of citizens” based on religion. The law now applies to peaceful actors and actions. In addition, individuals who defend or sympathize openly with those charged also may face charges.
Once a higher court upholds a prior ruling that religious material is “extremist,” the material is banned, with convicted individuals facing penalties ranging from a fine to five years in prison. As of June, the government has banned 1,254 items, according to the Sova Center, a Russian nongovernmental organization.
Russian citizens who preach that their particular faith is superior to others are potentially liable to prosecution. As written, this dangerously broad law can easily entrap peaceful members of religious groups, including those among the country’s Muslims, who number from 16 million to 20 million, simply for alleging the truth or superiority of their beliefs.
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No House Vote on Bill to Lift Trade Barriers With Russia
House Republican leaders won’t bring legislation that would permanently lift trading restrictions with Russia before the congressional summer recess, a House Republican leadership aide said, delaying until the fall a debate on whether to lift one of the remaining Cold War-era economic barriers with the former American foe.
There had been a strong push to bring the legislation forward before the month-long recess begins next week. Ultimately the momentum fell short after several major labor unions, including the AFL-CIO, urged lawmakers to oppose the legislation in a concerted messaging effort last week.
The bill would permanently lift the Jackson-Vanik amendment, a measure that places trading restrictions on countries that seek to place controls on emigration. It initially became law in 1974 and was aimed squarely at Russia.
Since the end of the Cold War, the bill has been repealed annually by Congress. But with Russia set to join the World Trade Organization in August, the U.S. must permanently strike the measure from its books in order for American exporters to be able to compete for a larger share of Russian trade.
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Business groups worry that Congress will leave Russia trade bill hanging
Business groups supporting Russian trade legislation are increasingly worried Congress will leave for its five-week recess before completing the measure.
If Congress does leave before removing Russia from the terms of the 37-year-old Jackson-Vanik law, U.S. exporters will be the ones that suffer, the groups say.
Russia in August is expected to join the World Trade Organization (WTO), a move that requires the United States to repeal Jackson-Vanik, a U.S. law originally aimed at encouraging the emigration of Russian Jews with the threat of higher tariffs on Russian products.
If the United States does not lift Russia from Jackson-Vanik, the world’s sixth-largest economy will be able to raise tariffs on U.S. goods under the WTO’s rules.
“This is a mess and it is why the USA Engage and the National Foreign Trade Council are urging this Congress and this president to get their act together right now and enact Russia PNTR [permanent normal trade relations],” Dan O’Flaherty, NFTC’s vice president, wrote in a Monday blog post.
“Otherwise, American companies will not have the advantages that our negotiators have spent 19 years gaining for them in the Russian market,” he wrote.
House and Senate committees have both approved legislation to graduate Russia from Jackson-Vanik, but they disagree over a human-rights bill that has become the price for moving the Russia trade legislation.
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The Russia Trade Pile-Up
So how can legislation supported by business groups, democracy activists, Senate Democrats, House Republicans and the Obama Administration be in danger of failing? Answer: Only in Washington.
That’s where things stand with a bill to normalize trade with Russia that includes a provision to sanction gross abusers of human rights. Early last week all looked good. Montana Democrat Max Baucus and Arizona Republican Jon Kyl crafted a compromise in the Senate Finance Committee that’s ready for a floor vote. Ways and Means Chairman Dave Camp and ranking Democrat Sander Levin knocked together a House version in a few hours.
Then on Monday every House Member received a letter from the United Steelworkers and the Communication Workers of America. The unions called the bill “woefully deficient” in enforcing Russian compliance with World Trade Organization rules. This is false, since Russia will join the WTO on August 22 no matter what, and failure to adopt “permanent normal trade relations” would only hurt U.S. companies in Russia. Yet Democratic support notably softened.
Meanwhile, the Administration has been missing in action. President Obama hasn’t pressed Members, while Secretary of State Hillary Clinton isn’t lobbying the Hill. We’re told that when he met with House Democrats on Thursday, Treasury Secretary Timothy Geithner stressed taxes but not this ostensibly high trade priority.
White House enthusiasm has ebbed since the Senate overrode its objections and added the Magnitsky Act, which bans Russian rights abusers from visiting or banking in the U.S. Mr. Obama also may not want to push a bill disliked by unions and that some criticize unfairly as rewarding Russian President Vladimir Putin’s bad behavior. Senate Majority Leader Harry Reid hasn’t committed to a floor vote before the August recess.
If Democratic leaders won’t lead, then some Republicans ask why they should. After the Ways and Means voice vote, Speaker John Boehner scotched quick House floor action. “If the president really thinks this is an important issue that we have to deal with, then maybe he ought to be out there making the case for it,” he said. “I haven’t seen that as yet.”
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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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