*EPF412 03/13/2003
Text: Permanent Normal Trade Relations Bill for Russia Introduced in House
(Rep. Sander Levin emphasizes Congress' role in Russia's WTO negotiations) (1350)

Four members of the House of Representatives have introduced legislation to "graduate" Russia from the provisions of the Jackson-Vanik amendment to the 1974 U.S. Trade Act and grant it permanent normal trade relations (PNTR) with the United States.

The co-sponsors are Sander M. Levin (Democrat of Michigan), Charles B. Rangel (Democrat of New York), Joseph R. Pitts (Republican of Pennsylvania), and Benjamin L. Cardin (Democrat of Maryland). The purpose of the Jackson-Vanik amendment is to deny PNTR to communist countries that restrict emigration rights.

In remarks published in the March 12 Congressional Record, Levin said the proposed legislation "would provide a historic update in U.S.-Russia trade relations" and "would strengthen U.S.-Russian relations and reinforce progress Russia has made in many areas."

He noted that congressional practice is to grant PNTR to a country that is subject to Jackson-Vanik only when it accedes to the World Trade Organization (WTO) or when accession negotiations are effectively completed. "I believe it is appropriate to depart from that precedent and grant Russia PNTR now," Levin said, "so long as Congress retains a strong and effective tool to ensure that U.S. interests are fully addressed in those negotiations. ... This legislation ensures that Congress will continue to play an active role in addressing trade problems as they emerge and in obtaining a strong WTO accession agreement from Russia. While giving up the precedent of using the PNTR vote as a proxy for approval of WTO accession, the legislation allows Congress to consider a resolution directly addressing the terms of agreement between the U.S. and Russia on Russia's WTO accession."

On March 10, Senator Richard G. Lugar (Republican of Indiana) introduced a Russia PNTR bill in the Senate, but Levin said that bill does not address the issue of assuring "a continuing congressional role in the resolution of vital elements of an agreement on Russia's WTO accession." He added that Congress should oversee the negotiations "to ensure that it provides the strongest benefits for U.S. workers, farmers and businesses."

Following are Levin's remarks from the Congressional Record:

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Congressional Record
Washington, D.C.

PNTR [PERMANENT NORMAL TRADE RELATIONS] TO RUSSIA -- HON. SANDER M. LEVIN (Extensions of Remarks - March 12, 2003)

HON. SANDER M. LEVIN OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES WEDNESDAY, MARCH 12, 2003

MR. LEVIN. Mr. Speaker, today Mr. RANGEL, Mr. PITTS, Mr. CARDIN and myself introduced a bill that would grant permanent normal trade relations (PNTR) to Russia and ``graduate'' Russia from the application of the so-called Jackson-Vanik amendment. The legislation would provide a historic update in U.S.-Russia trade relations. It would strengthen U.S.-Russian relations and reinforce progress Russia has made in many areas. Additionally, the legislation would ensure that Congress continues to play an active role--with the Administration and with Russia--in confronting trade disputes and negotiating the terms of Russia's WTO accession.

It is useful to recall at the outset that the Jackson-Vanik amendment was itself an amendment to Title IV of the Trade Act of 1974, a trade statute. In particular, Title IV created a framework for conducting trade relations with non-market economies. The Jackson-Vanik amendment, which has been an effective tool for raising freedom of emigration and human rights concerns, is a key element of Title IV; however, the underlying purpose and function of the statute were and remain the conduct of trade relations.

Accordingly, PNTR legislation must address fundamental trade issues. Consistent congressional practice is to grant PNTR to a country that is subject to Jackson-Vanik only at the time of the country's WTO accession, or when negotiations on accession were effectively completed. In this way, Congress' vote on PNTR has served as a way to signal approval for the country's WTO accession agreement. Under this approach, Congress was able to exercise its constitutional prerogative to regulate commerce with foreign nations, and the American people benefitted from the Administration negotiating the strongest possible agreement.

This precedent has led to an important series of successful accessions to the WTO, including most notably for China, on terms that reinforced the WTO rules-based system, and brought great benefits to the people of the United States as well as other WTO countries.

In the case of Russia, WTO accession terms are still being negotiated. I believe it is appropriate to depart from that precedent and grant Russia PNTR now, so long as Congress retains a strong and effective tool to ensure that U.S. interests are fully addressed in those negotiations. And, there are many critical issues that still need to be addressed--Russian commitments to open its auto market, commitments in the services and other sectors, ongoing problems with pricing in the industrial energy sector, intellectual property protection, to name just a few. Moreover, several recent actions by Russia--including last year's poultry ban and potential new restrictions on beef and pork--have renewed concerns in Congress about Russia's commitment to opening its market to U.S. exports and service providers and to adopting market-oriented reforms.

This legislation ensures that Congress will continue to play an active role in addressing trade problems as they emerge and in obtaining a strong WTO accession agreement from Russia. While giving up the precedent of using the PNTR vote as a proxy for approval of WTO accession, the legislation allows Congress to consider a resolution directly addressing the terms of agreement between the U.S. and Russia on Russia's WTO accession. While in its form, this resolution would be non-binding on the Executive, it would provide Congress with an important tool to assure itself of a continuing role in the formation of the terms of Russia's WTO accession and thereby implement Congress' constitutional responsibility of oversight over trade matters.

There are two sides to the PNTR coin--the trade issues and the ``Jackson-Vanik'' issues. The Jackson-Vanik amendment was an historic piece of legislation, aimed at addressing a serious problem in the former Soviet Union. It set forth important criteria related to freedom of emigration necessary for certain countries to obtain normal trade relations with the United States.

Even from its inception, however, the Jackson-Vanik amendment was not only concerned with freedom of emigration, but also reflected the American commitment to human rights and freedom of religion. This fact is evident not only in the preamble of the Jackson-Vanik amendment, but also in the operation of U.S. relations with the former Soviet countries for nearly thirty years. I think it is appropriate, then, that as we consider graduating Russia from the Jackson-Vanik amendment, that we place a strong emphasis on freedom of emigration, religious freedom, and human rights issues. These were the issues at the core of the Jackson-Vanik amendment, and continue to be relevant when considering ``graduation,'' particularly for Russia, which was and is in many ways the primary focus of the Jackson-Vanik amendment.

I am glad that we were able to craft a bill that addresses these vital issues in a responsible way, rather than giving them ``check-the-box'' cursory treatment. The presence of Members of the Helsinki Commission on the bill, who have a long history of dealing with human rights and religious freedoms, demonstrates that we have given these issues the careful treatment they deserve.

Earlier this week, Senator LUGAR, the distinguished Senator from Indiana and a key participant in consideration of our relations with other nations, introduced a Russia PNTR bill. This bill did not address the issue of assuring a continuing congressional role in the resolution of vital elements of an agreement on Russia's WTO accession. I believe that Congress has a substantial role to play in overseeing negotiations of Russia WTO accession agreement to ensure that it provides the strongest benefits for U.S. workers, farmers and businesses, and therefore we are introducing this legislation today.

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(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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