Jackson Vanik will pass – bipartisan support of congress and interest groups gives momentum



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A2: No Vote




Debates are beginning – Obama’s capital needed to round up the votes


Needham, 4/26

Vikki, The Hill, http://thehill.com/blogs/on-the-money/1005-trade/224021-house-panel-aims-for-june-hearing-on-russia-trade-, BJM


The House Ways and Means Committee is aiming to hold a hearing in June on granting permanent normal trade relations to Russia. Panel Chairman Dave Camp (R-Mich.), who announced the meeting, urged the White House on Thursday to focus its efforts on convincing skeptical lawmakers that a long-standing and outdated Jackson-Vanik should be repealed and normal trade relations granted to Russia as the nation votes to join the World Trade Organization this summer. "While I share the view of many Members that Russia poses significant problems on foreign policy and human rights issues, holding up PNTR because of non-trade concerns does not increase our leverage to address them," Camp said Thursday during a speech at the Center for Strategic International Studies (CSIS). "I call on the administration to intensify its efforts with regard to Russia and make its best case for why Congress should act this year on PNTR," he said. "It is time for the White House to get out front on this issue."

Top of Agenda/Obama Pushing




Obama intensifying his push – key priority


Wingfield, 4/26

Brian, Bloomberg, Newsweek, http://www.businessweek.com/news/2012-04-26/obama-should-move-quickly-on-trade-status-for-russia-camp-says, BJM


The Obama administration should intensify its push to grant Russia permanent normal trade relations, which would benefit U.S. companies, the Republican chairman of a House committee that oversees trade issues said. “It’s time for the White House to get out front on this issue,” Representative Dave Camp of Michigan, head of the House Ways and Means Committee, said today in a Washington speech. The U.S. would gain a powerful new enforcement tool by giving Russia improved status, Camp said, as it plans this year to join the World Trade Organization, an international arbiter of disputes among governments. In order for U.S. companies to pay lower tariffs on trade with Russia, Congress must alter the so-called Jackson-Vanik amendment to 1974 trade law, which restricted trade with the former Soviet Union. Camp’s panel plans a hearing in June, giving President Barack Obama’s administration several weeks to push for improved status, he said. Ending Jackson-Vanik is a key priority for the administration, Andrea Mead, a spokeswoman for the U.S. Trade Representative’s office, said in an e-mail. USTR is pleased that the Ways and Means Committee will hold its hearing, she said. “We look forward to working with Congress” on the issue, she said.


PNTR top of the agenda – strong push key to passage


Palmer, 4/26

Doug, Reuters, “UPDATE 2-US Republican urges Obama push on Russia trade bill”, Factiva


A top Republican lawmaker pressed President Barack Obama to intensify efforts to win approval of a controversial trade bill with Russia and said separate human rights legislation might be needed to help round up votes. "It is time for the White House to get out front on this issue," Dave Camp, chairman of the House of Representatives Ways and Means Committee, said in a speech at the Center for Strategic and International Studies. With Russia set to enter the World Trade Organization by late July or August, the Obama administration has identified passage of "permanent normal trade relations" - or PNTR - with Russia as one of its top trade priorities for the year. But Camp, who announced plans to hold a hearing on the legislation in June, said the Obama administration has not engaged "strongly enough" to overcome resistance in Congress to passing the bill, which is also a top priority for U.S. business groups. With a major push from the White House, "it's possible" the bill could be passed by the August recess, Camp said. However, some trade policy analysts think the hot-button issue could be delayed until after the U.S. elections in November.

Top priority for Congress


Rashish, 3/27

Peter,, Vice President for Europe and Eurasia Federal Information & News Dispatch, “House Foreign Affairs Subcommittee on Europe and Eurasia Hearing; "Creating Jobs: Economic Opportunities in Europe and Eurasia.", Lexis, BJM


While discussions about the scope and reach of a Transatlantic Economic and Trade Pact are at an early stage, Russia's imminent accession to the World Trade Organization (WTO) is in its final lap. The Chamber congratulates the U.S. negotiating team led by the Office of the U.S. Trade Representative for securing the commercially strong agreement under which Russia is finally joining the WTO. Approval of PNTR and repeal of the Jackson-Vanik amendment with respect to Russia is one of the Chamber's top trade priorities before the Congress this year (the other such priority is reauthorization of the Export-Import Bank of the United States). On December 16, 2011, trade ministers at the 8th WTO Ministerial Conference celebrated the conclusion of 18 years of negotiations for Russia to accede to the WTO and invited Russia to become the organization's 154th member. In those negotiations, Russia committed to enact a host of reforms to meet its extensive commitments to the WTO, and Moscow is expected to complete this work and formally join the WTO in July 2012. That Russia will join the WTO is no longer in doubt. In fact, at this juncture, the United States can neither help nor hinder Russia in doing so. However, the U.S. Congress must act to ensure that the United States benefits from the reforms Russia is undertaking as it joins the WTO. Specifically, Congress must pass a short and simple bill that grants Russia Permanent Normal Trade Relations and repeals the Jackson-Vanik amendment with respect to Russia (see details below). Failure to do so will put U.S. workers, farmers, and businesses at a unique disadvantage in the growing Russian marketplace and drive new sales, exports, and job-creation opportunities to our European and Asian competitors.


Obama aggressively pushing repeal of Jackson-Vanik --- political capital is key


Frolov, 3/23 (Vladimir, 3/23/2012, Russia Profile, “Russia Profile Weekly Experts Panel: Will Russia Graduate From the Jackson-Vanik Amendment?” Factiva)
During the post-Soviet period, all U.S. administrations, from Bill Clinton to George Bush, promised to graduate Russia from Jackson-Vanik, only to see little congressional support for the measure. None ventured to spend much political capital on pushing it through a reluctant Congress. In the meantime, several post-Soviet states – Ukraine, Georgia, and Kyrgyzstan – were graduated from Jackson-Vanik and granted PNTR when they joined the World Trade Organization. Now, Russia is joining the WTO and the Barack Obama administration has jumped on this opportunity to do away with this last legacy of the Cold War in U.S.-Russian relations. This time around, it is the United States that would benefit more from Russia's graduation. If the Jackson-Vanik Amendment is still on the books by the time Russia officially joins the WTO this summer, U.S. companies will find themselves at a disadvantage in the Russian market. Unlike competitors from other countries, they will not be protected by WTO rules and Moscow could choose to retaliate against American companies with tariffs and other barriers. Senate Finance Committee Chairman Max Baucus, who traveled to Russia last month, is leading the drive in the Senate to repeal the law. "We must pass permanent normal trade relations, or PNTR, to ensure that our exporters can access the growing Russian market," Baucus said. "If the United States passes PNTR with Russia, U.S. exports to Russia are projected to double within five years. If Congress doesn't pass PNTR, Russia will join the WTO anyway and U.S. exporters will lose out to their Chinese and European competitors." The Obama administration is solidly behind the effort to graduate Russia from the provisions of Jackson-Vanik, and has launched an aggressive effort in Congress and inside the U.S. business community. Last week, during a meeting with U.S. business leaders, President Barack Obama emphasized that granting PNTR to Russia is necessary for American companies to benefit from Russia's entry into the WTO. Senior officials, such as Secretary of State Hillary Clinton and U.S. Trade Representative Ron Kirk, sent a similar message to Capitol Hill. But there is still serious opposition in Congress to lifting all trade restrictions on Russia. Some republican and democratic lawmakers want to link the trade issue and issues of human rights and corruption in Russia, arguing that Russia's graduation from Jackson-Vanik should be linked to the passage of the Sergei Magnitsky Rule of Law Accountability Act of 2011, named for the anti-corruption lawyer who died in a Russian prison more than two years ago. This position has gotten support from the democracy promotion camp. David Kramer, head of the Freedom House think tank, said last week at an event sponsored by the Foreign Policy Initiative: "Politically, in light of the environment in Russia, which has been deteriorating, to simply lift Jackson-Vanik without some replacement would be viewed by Russian leadership as a sign of weakness on the part of the United States – again, that we need this relationship more than they do. And if we don't replace it, then we would, in their minds, be rewarding them despite their bad behavior by not going after them. To me, this has to be a package deal." U.S. Ambassador to Russia Mike McFaul and Assistant Secretary of State Phillip Gordon told Congress that the administration does not see the need for new human rights legislation on Russia, while the State Department has the authority to implement visa restrictions against foreign citizens suspected of human rights violations. McFaul said last week that the administration no longer believes any such "weird linkage" is necessary to accompany the repeal of Jackson-Vanik. Leading Russian opposition figures – Vladimir Milov, Boris Nemtsov, Garry Kasparov, Ilya Ponomarev and Alexei Navalny – signed a letter to Congress arguing that repealing Jackson-Vanik would be good for Russian democracy.

Obama’s pushing now


WSJ 3/20 (“After Jackson-Vanik,” http://online.wsj.com/article/SB10001424052702304459804577285330434798916.html?mod=googlenews_wsj)
The Obama Administration's "reset" with Russia has muffled concerns over human rights and democracy and dwelled on business palatable to the Kremlin like nuclear proliferation and trade. The Senate now has an opportunity to restore balance to this relationship. Days after Vladimir Putin won another manipulated election, President Obama responded by calling for the Senate to repeal the 1974 Jackson-Vanik amendment, which links trade access to Moscow's treatment of its citizens. The dispute in Washington isn't whether Jackson-Vanik should stay in place, but what should follow. With Russia set to join the World Trade Organization this summer, American companies would be hurt by Jackson-Vanik, which blocks the U.S. from granting normal trading status. Under WTO rules, Russia could adopt retaliatory tariffs. Even Russian opposition leaders consider Jackson-Vanik a "relic," as Garry Kasparov and Boris Nemtsov wrote in these pages Thursday. They support its repeal. As do we.

Hearings now


Godfrey 3/20 (Mike Godfrey, “US Senate Mulls Trade Relations With Russia,” Tax News, http://www.usa-tax-news.com/story/US_Senate_Mulls_Trade_Relations_With_Russia____54526.html)
The United States Senate Finance Committee, chaired by Max Baucus (D – Montana), has held a hearing to examine the implications of Russia’s accession to the World Trade Organization (WTO). Baucus, in his opening statement, said that, as the largest economy currently outside the WTO and the sixth-largest economy in the world, Russia joining the WTO “presents a lucrative opportunity for the US economy and American jobs”. He insisted that Congress must act and pass Permanent Normal Trade Relations (PNTR) to ensure US exporters can access the growing Russian market, noting that “if the US passes PNTR with Russia, US exports to Russia are projected to double within five years. If Congress doesn’t pass PNTR, Russia will join the WTO anyway, and US exporters will lose out to their Chinese and European competitors.”

Hearings now


Gasyuk 3/16 (Alexander Gasyuk, “Trade hearings renew debates on Russia,” http://rbth.ru/articles/2012/03/16/jackson-vanik_trade_hearings_renew_debates_on_russia_15086.html)
The United States Senate Finance Committee began hearings Thursday on abolishing controversial trade restrictions against Russia under the Soviet-era Jackson-Vanik amendment. American lawmakers will debate the end of trade practices, which have long prevented granting Permanent Normal Trade Relations (PNTR) status to Moscow. It is still unclear clear whether the Obama administration will convince Congress to lift the decades-old law and if so on what terms. The Jackson-Vanik amendment was adopted in 1974, when it linked restrictions on trade with the right of Jews to emigrate from the Soviet Union. That issue has been dead since the collapse of the U.S.S.R., if not before. Some lawmakers and analysts believe lifting the amendment could be a boon for U.S.-Russia trade. Senate Finance Committee Chairman Max Baucus (D-Mont.), said that lifting the provision could double U.S. exports to Russia. And Anders Aslund, a senior fellow at the Peterson Institute, said that that exports could increase to $20 billion annually in five years.

Top of the agenda


ICTSD 3-7 [International Center for Trade and Sustainable Development,

Russia Trade Debate Prepares to Kick Off in Washington,



http://ictsd.org/i/news/bridgesweekly/126847/]
US-Russia trade ties are entering back into the spotlight, with Washington lawmakers set to begin debating the repeal of Cold War-era trade restrictions that would allow Moscow to become a full trade partner. The visit of Max Baucus - the chairman of the Senate Finance Committee, which has jurisdiction over tax and trade policy - to Russia last week was expected to kick off the debate in Washington, with the senator meeting with Russian President Dmitry Medvedev to discuss the trade situation and other subjects.

Obama’s first initiative


Kyodo 3/3 (Kyodo News Service, Pressing the Putin Regime, Washington Post, Lexis)
It is therefore unfortunate that the Obama administration's first initiative after Putin's return to the presidency will be to lobby Congress to grant Russia permanent trade privileges. The White House is seeking the repeal of a 1974 law known as Jackson-Vanik, which links the trade preferences for Russia to free emigration. Repeal is logical for a couple of reasons: Russia, unlike the former Soviet Union, does not restrict the exit of Jews and others -- and if the law is not removed, U.S. companies will be penalized after Russia enters the World Trade Organization later this year. But a bipartisan coalition in Congress is concerned about removing this legacy of U.S. human rights advocacy without addressing the abuses of the Putin regime. Led in part by Sen. Benjamin Cardin, the group proposes to couple the Jackson-Vanik repeal with a measure that would require the administration to single out Russian officials responsible for gross human rights violations, ban them from traveling to the United States and freeze their assets. The Obama administration, on the other hand, is doing its best to kill it. In part it objects to Congress mandating foreign-policy actions. (In an attempt to defuse the issue, the State Department last year banned visas for a few dozen Russian officials involved in one notorious human rights case, the death of lawyer Sergei Magnitsky, after whom the congressional legislation is named.) But the administration also worries excessively about provoking Putin. Putin's imperious return to the presidency has destroyed his political legitimacy in Russia. The sensible U.S. response is to sanction those in his regime who are imprisoning and killing journalists, whistleblowers and advocates of democratic change. Trade preferences should go forward. But so should the Magnitsky bill. (March 2)

Top of the agenda


Lyauv 3/2 (Bela Lyauv, “Repeal of Jackson-Vanick may create new jobs,” RusData Dialine, Lexis)
The Obama administration is pressing Congress to throw out the Soviet-era Jackson-Vanik amendment to restrict trade with Russia, making a plea on behalf of U.S. farmers and manufacturers. The United States will seek to repeal the law "as soon as possible" to give American exporters the same benefits as their overseas competitors, U.S. Trade Representative Ron Kirk told the House Ways and Means Committee on Wednesday. The legislation, passed in 1974, barred favorable U.S. trade with the Soviet Union to punish the nation for blocking emigration for its Jews citizens. Annual waivers have been allowed and widely used since 1993, two years after the communist government collapsed. "We ought to lift it," Secretary of State Hillary Clinton said Tuesday in testimony to the Senate Foreign Relations Committee. "Failing to lift it will put our farmers and manufacturers and our workers at a disadvantage." Russia is now poised to join the World Trade Organization in May or June, Prime Minister Vladimir Putin said this month. President Barack Obama said he supports Russia becoming a member of the international trade arbiter, which would allow reduced tariffs and greater transparency. U.S. producers won't benefit from lower trade barriers as long as Jackson- Vanik remains in effect, said Randi Levinas, executive director of the U.S.-Russia Business Council, with members such as General Electric, Caterpillar and Chevron. The United States wouldn't gain intellectual property protection and adoption of food safety regulations on products from Russia, she said. While waivers have worked for almost two decades, Russia's joining the WTO would put the United States in violation of the trade arbiter's rules because Russia wouldn't get the certainty that trade accords provide, said Joshua Meltzer, a fellow at the Brookings Institution in Washington specializing in global economy and development. The United States wouldn't be able to complain about any Russian trade violations at the WTO, he said.

Obama pushing passage ASAP


Moscow Times 3-2 [White House Sees Repeal of Jackson-Vanik Yielding

Jobs, http://www.themoscowtimes.com/business/article/white-house-sees-repeal-of-jackson-vanik-yielding-jobs/453958.html]


The Obama administration is pressing Congress to throw out the Soviet-era Jackson-Vanik amendment to restrict trade with Russia, making a plea on behalf of U.S. farmers and manufacturers. The United States will seek to repeal the law “as soon as possible” to give American exporters the same benefits as their overseas competitors, U.S. Trade Representative Ron Kirk told the House Ways and Means Committee on Wednesday.




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