US bill to favour Russia trade
WASHINGTON — A bipartisan group of US senators introduced legislation yesterday that would scrap a decadesold law imposing trade restrictions on Moscow, saying it’s necessary as Russia joins the WTO.
Washington’s former Cold War adversary has been given the green light to join the World Trade Organization, which means the Russian and US governments will need to grant each other permanent normal trade relations (PNTR) by the time the accesion is complete.
Washington would need to lift a 1974 law, the JacksonVanik amendment, under which normal trade relations are granted to Russia only on an annual basis — provided the US president certifies to Congress each year that Rus- sia is permitting free emigration.
“This is an opportunity to double our exports to Russia and create thousands of jobs across every sector of the US economy, all at no cost to the US whatsoever,” said Democrat Max Baucus, who chairs the Senate Finance Committee.
“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,” he added.
Republican John Thune noted that presidents from both parties have been granting Russia normal trade status every year since 1992.
“It is time to establish this treatment on a permanent ba- sis so that American farmers, manufacturers, investors, and service providers will have the ability to take full advantage of the new business opportunities resulting from Russia’s entry into the WTO,” he said.
US business groups support the lifting of Jackson-Vanik, as Russia’s membership in WTO will allow US companies to take advantage of additional market access, greater intellectual property enforcement, higher quotas for US beef, poultry and pork, and lower Russian agriculture subsidies.
“Passing this bill will ensure that US businesses, ranchers, farmers and workers will not be at a disadvantage in the Russian market compared to their global competitors,” US Trade Representative Ron Kirk said in a statement welcoming the legislation.— AFP