By STEVE BINDER Illinois Correspondent
WASHINGTON, D.C. — Legislation introduced by a group of U.S. senators, including Republicans, would open the door to more trade with Russia, but other GOP lawmakers say they want the trade measure tied to improvements in Russia’s poor human rights record and support of Syria.
The Senate bill, sponsored by Max Baucus (D-Mont.), John Kerry (D-Mass.), John McCain (R-Ariz.) and John Thune (R-S.D.), would move Russia out from under the Jackson-Vanik Act of 1974 to establish permanent normal trade relations (PNTR) between Russia and the United States.
Russia is expected to join the World Trade Organization (WTO) by the end of summer, and the Senate bill would pave the way for the United States to take advantage of lower tariffs and market openings once Russia joins the WTO.
It is thought U.S. economic interests would benefit if PNTR were established with Russia, especially the ag industry. Russia imported more than $770 million in ag products last year, according to the American Soybean Assoc. (ASA). The Senate bill was introduced June 12, and ASA President Steve Wellman immediately called for its support.
“Today’s announcement from Senators Baucus, Kerry, McCain and Thune is an exciting one for farmers,” Wellman said. “As Russia’s economy and purchasing power grows, Russian demand for soy products, poultry, pork, dairy and eggs grows as well, and that’s great news for American soybean farmers.”
Baucus, the Senate’s Finance Committee chair, said after the bill’s introduction that he would push the measure quickly but wanted to make sure provisions of the so-called “Magnitsky” bill – named after a lawyer who died in a Russian prison in 2009 after accusing government officials of fraud – would be incorporated into PNTR action in the House.
White House officials want the PNTR legislation considered separately.
“This is an opportunity to double our exports to Russia and create thousands of jobs across every sector of the U.S. economy, all at no cost to the U.S. whatsoever,” Baucus said.
Unlike requirements under a free trade agreement, establishing PNTR with Russia would not require the United States to lower any tariffs or provide any market access benefits.
“Jackson-Vanik served its purpose during the Cold War, but it’s a relic of another era that now stands in the way of our farmers, ranchers and businesses pursuing opportunities to grow and create jobs,” Baucus said.
Sen. Orrin Hatch (R-Utah) said he’s concerned about moving forward with the trade bill without addressing Russia’s support of Syria and the violence occurring there.
Russia “will not act properly without the right restraints,” Hatch said. “I think it’s important to establish that we expect certain standards of conduct from countries that we grant PNTR to. I would like to do PNTR, but I’d like to do it under the right circumstances.” |