White House, business groups commend Congress for passage of Russia trade bill

December 7, 2012

The Hill

Vicki Needham

The Obama administration and business groups commended Congress on Thursday for clearing legislation that would grant permanent normal trade relations to Russia. 

After months of lobbying and delays, the Senate overwhelmingly passed the measure that provides permanent normal trade relations (PNTR) to Moscow and Moldova by repealing the obsolete Jackson-Vanik law, aimed at encouraging the emigration of Russian Jews. 

The measure also contains human rights legislation specifically calling for denying U.S. visas and freezing the assets of Russian officials involved in the death of whistleblower lawyer Sergei Magnitsky, who died in a Russian prison. 

"The legislation will ensure that American businesses and workers are able to take full advantage of the WTO rules and market access commitments that the United States worked so hard to negotiate," President Obama said in a statement. 

"My administration will continue to work with Congress and our partners to support those seeking a free and democratic future for Russia and promote the rule of law and respect for human rights around the world."

The administration had expressed opposition to adding the human rights legislation, preferring only the trade measure. But they seemed to soften a bit to the idea, and pushed back more strongly against the broader bill that Sen. Ben Cardin (D-Md.) was pushing. 

The Senate easily passed the measure, 92-4, after it passed the House 365-43 on Nov. 16.

Cardin had hoped to broaden the human rights language that would have imposed travel and financial sanctions on alleged human rights violators around the world.

House Ways and Means Committee ranking member Sandy Levin (D-Mich.), who has said he would prefer a global bill, said besides providing U.S. companies greater opportunities in Russia, the "bill also will help make a real difference when it comes to protecting human rights in Russia.”

The legislation languished in Congress as lawmakers hesitated to pass a bill before the elections. But the House quickly picked up on the legislation after their return to Washington in November.

U.S. Trade Representative Ron Kirk said the "Senate’s historic bipartisan vote today moves us closer to having our trade with Russia covered by the rules of the World Trade Organization.”

"As a result, American businesses and workers will have better access to the growing Russian market on the same terms as their global competitors, and the United States will have WTO procedures available to help ensure that Russia abides by its commitments."

Business groups had spent months pressing lawmakers to pass the measure, especially after Russia joined the World Trade Organization in August, to provide equal trading rights to U.S. firms in Russia.

The National Foreign Trade Council (NFTC) called the bill essential to increasing U.S. exports.

“With today’s vote, U.S. exporters and service providers now have an opportunity to compete on a level playing field in one of the world’s largest expanding markets and to reap the benefits of Russia’s membership in the WTO,” said NFTC Vice President Dan O’Flaherty. “We urge the president to sign the bill into law without delay.”

Still the group, which had pressed for narrower human rights sanctions, expressed disappointment that the human right language didn't include a sunset provision, in case the sanctions become unnecessary, O’Flaherty said.

The Business Roundtable (BRT), which made approval of the bill a top priority this year, called passage a victory for U.S. businesses and workers.

“With roughly 142 million consumers and its position as the world’s sixth-largest economy in terms of purchasing power, Russia is a significant market for U.S. exporters like our company," said Doug Oberhelman, chairman and chief executive of Caterpillar and chairman of BRT’s international engagement committee.

U.S. Chamber of Commerce President and CEO Thomas Donohue said the bill was especially important because there is no cost to taxpayers.

“The Chamber applauds the Senate for today’s overwhelming vote to help American companies sell their products in the world’s ninth largest market," he said.

"This is a rare bill that will create American jobs without costing the taxpayer a dime."

The bill now goes to Obama’s desk for his signature.

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