CQ TODAY ONLINE NEWS
Corrected June 21, 2012 – 4:08 p.m.
Business Joins Effort to Boost Trade With Russia
By Joseph J. Schatz, CQ Staff
The trade business coalition that won a victory in Congress this year in reauthorizing the Export-Import Bank is trying again on what may be a tougher issue.
Groups representing exporters and manufacturers issued support Tuesday for draft legislation Senate Finance Chairman
The Business Roundtable, a prominent business lobbying group, ramped up its efforts on the issue, a top trade priority for the business community and the Obama administration, and the National Association of Manufacturers said it is important to business as “our economy is stalling.” The U.S. Chamber of Commerce applauded the bill’s sponsors and said, “Congress should act swiftly to ensure that the United States is not on the outside looking in when Russia formally joins the WTO this summer.”
But the move to normalize relations faces significant headwinds due to concerns from lawmakers in both parties about the Russian government’s human rights record and foreign policy differences with the United States on issues such as government-sponsored violence in Syria. Several top Republicans in the Senate have criticized the effort, and House Republicans so far have been wary. House Ways and Means Chairman
And just hours after Baucus unveiled his bill Tuesday, Secretary of State
Bipartisan Support
Baucus’ bill, however, is a bipartisan effort, with the Armed Services Committee’s top Republican,
The legislation would lift the so-called Jackson-Vanik amendment for Russia. The law (PL 93-618) was enacted in the 1970s to target Communist countries that restricted Jewish emigration.
Critics of Russia in the Senate, including
Cardin has drawn widespread support for a bill (
Baucus pledged to McCain and other members to work to add Magnitsky language to the trade bill as an amendment. Baucus wants his committee to act, and the full Senate to vote, on the bill before the August recess. He promised to force a vote on legislation normalizing trade with Moldova.
“As I and others have made clear, the extension of Permanent Normal Trade Relations status and the repeal of the Jackson-Vanik amendment for Russia must be accompanied by passage of the Magnitsky Act,” McCain said in a written statement. “I appreciate Sen. Baucus’ written commitment that he will work for Senate passage of both of these pieces of legislation as soon as possible this year. As we take steps to liberalize U.S. trade with Russia — as we should — we must also maintain our longstanding support for human rights and the fight against corruption in Russia.”
Baucus promised to push for the Magnitsky language in conference with the House. But even though administration officials have been involved in talks to find a way forward, it remains unclear whether they would support attaching human rights language to the trade bill.
Business Joins Effort to Boost Trade With Russia
The House Foreign Affairs Committee approved legislation similar to Cardin’s bill last week, but Camp says he is opposed to linking the two issues. Camp is expected to hold a hearing on the issue before the end of the month.
Business groups argue that if Congress does not act before Russia joins the WTO, U.S. exporters may be left at a competitive disadvantage there, without access to the WTO’s dispute-settlement mechanisms. Lifting the Jackson-Vanik restrictions could increase U.S. exports to Russia from $9 billion to $26 billion, according to a recent analysis by the Peterson Institute for International Affairs.
Baucus calls his legislation “an opportunity to double our exports to Russia and create thousands of jobs across every sector of the U.S. economy, all at no cost to the U.S. whatsoever. We give up nothing as part of this process — not one single tariff reduction — so it’s truly a one-sided benefit for the U.S.,” he said. “The clock is ticking for us to move, so we need to act now.”
Senate Finance panel Republicans wrote to Baucus on Tuesday asking him to allow the committee to address other economic disputes with Russia, such as intellectual property rights violations and corruption, before moving the bill. They also warned against weakening the Magnitsky legislation.
First posted June 12, 2012 1:01 p.m.
Correction
Corrects number for bill to impose new sanctions on human rights abusers in Russia. The bill number is S1039