According to sources at the Office of the U.S. Trade Representative, the Administration is working closely with USTR committees of jurisdiction on the best way forward to terminate application of the Jackson-Vanik amendment to Russia and to extend permanent normal trade relations (PNTR) to Russia. Other sources indicate that the politics of the matter are difficult and no legislation has yet been introduced.
The Senate Finance Committee will hold a hearing on March 15, 2011 on the implications of Russia's accession to the World Trade Organization on the U.S. The President, U.S. Trade Representative, and Committee Chairman Max Baucus (D-MT) have recently commented on this issue and called on Congress to terminate the application of the Jackson-Vanik amendment to Russia and extend permanent normal trade relations (PNTR) to the country so that U.S. companies can take advantage of Russia's WTO accession.
On March 7, 2012, U.S. Trade Representative Ron Kirk testified before the Senate Finance Committee on key initiatives of the President's Trade Policy Agenda for 2012, such as the U.S.-Korea Trade Agreement (KORUS) that will come into force on March 15, the Trans-Pacific Partnership (TPP) negotiations, and tougher trade enforcement through the new Interagency Trade Enforcement Center (ITEC). USTR Kirk also stated that Russia's Jackson-Vanik status must be terminated as soon as possible in order for U.S. firms to enjoy the same benefits of Russia's World Trade Organization membership as the U.S.' international competitors. Senate Finance Chairman Baucus (D-MT) also commented on the President's trade agenda and laid out three major trade goals for 2012: (1) establishing permanent normal trade relations (PNTR) with Russia; (2) Concluding the TPP trade agreement negotiations; and (3) addressing the challenges posed by China.
The International Trade Administration has announced that on December 16, 2011, Trade Ministers approved the terms of Russia’s accession and issued a formal invitation for Russia to join the World Trade Organization as its 155th Member. In order to highlight the tariff and non-tariff commitments Russia is undertaking in key U.S. export sectors, the ITA has made available 18 "Sector Opportunity Reports." In addition, the State Opportunity Reports outline the opportunities and benefits for Russia’s WTO accession for each state, their companies, workers, farmers, and ranchers.
Sources at the Office of the U.S. Trade Representative confirm that unless the Jackson-Vanik amendment1 is revoked for Russia and the U.S. extends permanent normal trading relations (PNTR) to the country, U.S. companies will not benefit from Russia’s World Trade Organization commitments when Russia becomes an official WTO member.
The World Trade Organization (WTO) posted the following notices from December 16, 2011 (may have to click twice on source documents for proper viewing):
During a December 13, 2011 speech before the Washington International Trade Association, Representative Brady (R-TX), Chairman of the House Ways and Means Trade Subcommittee, discussed the future congressional trade agenda, including plans to move a Miscellaneous Tariff Bill, Customs reauthorization bill, Trade Promotion Authority, extension of AGOA third country fabric provision, etc. Rep. Brady also discussed future plans for completing the Trans Pacific Partnership (TPP) agreement, finalizing Russia’s WTO membership, and U.S.-China trade relations.
On October 29, 2011, Congressional trade leaders1 sent a letter to the U.S. Trade Representative calling on him to insist that Russia meet a high standard in the ongoing negotiations regarding Russia's accession to the World Trade Organization. The leaders note that there are many challenges to be negotiated with Russia, the totality of which will determine Congressional support for Russia’s WTO accession. Russia’s protection of intellectual property, commitment to join the Information Technology Agreement, satisfactory commitments on agriculture and sanitary and phytosanitary issues, and commitment to address problematic investment policies, will be significant considerations.
During a July 13, 2011 meeting with Russian Foreign Minister Lavrov, President Obama reaffirmed his strong support for Russia’s efforts to complete its World Trade Organization accession process this year and discussed the necessity of granting Russia Permanent Normalized Trade Relations (PNTR).
On June 21, 2011, Senators Rockefeller (D) and Snowe (R) introduced S. 1238, a bill to hold the U.S.' trading partners accountable if they deliberately suppress the value of their currency to gain an unfair trade advantage.