US: Former trade representatives tout Russia trade

A half-dozen former U.S. trade representatives are urging Congress to grant Russia permanent normal trade relations (PNTR) before the August recess.

The former trade representatives, who served under four different presidents, warned in a Tuesday letter to House and Senate leaders that U.S. exports will be at a significant disadvantage and will not be able to take advantage of the full benefits of Russia joining the World Trade Organization (WTO) if Congress does not act.

"Unfortunately, the United States will not be able to fully realize these benefits until Congress passes legislation graduating Russia from the Jackson-Vanik amendment and permanently granting Russia PNTR," they wrote.

"Until Congress takes this step, the United States — alone among all WTO members — will not have the ability to enforce the market opening, intellectual property rights and other WTO commitments that Russia has made."

Congress needs to repeal Jackson-Vanik, an obsolete provision put into place nearly 40 years ago to put pressure on communist nations for human-rights abuses and emigration policies.

The House Ways and Means Committee will discuss the issue at a hearing Wednesday, while the Senate Finance Committee is scheduled to meet Thursday.

Senate Finance Chairman Max Baucus (D-Mont.) has said he intends to link the Jackson-Vanik repeal with human-rights legislation.

Russia is the largest economy outside the 153-member World Trade Organization (WTO). It is the world’s ninth largest economy, and about one-fifth of its 142 million people are part of a rapidly growing middle class.

Estimates show that U.S. exports to Russia could double from $11 billion in 2011 to $22 billion in 2017.

"Timely Congressional action is the essential next step to ensuring that American workers, farmers and businesses will be competitive in the Russian market," they wrote.

Russia is expected to vote on its accession, an 18-year effort, on July 4. That would give Congress about 30 days to wrap up work.

The six are Susan Schwab, Clayton Yeutter, William E. Brock III, Michael Kantor, Carla Hills and Charlene Barshefsky.

June 20, 2012

Source: The Hill