–Senate Finance Chief: Senate Should Pass PNTR, Repeal Jackson-Vanik
–Sen. Baucus: Jackson-Vanik Is A ‘Relic of The Past’
–Sen. Kyl: U.S. Can’t ‘Trust’ Russia To Honor Trade Obligations

By John Shaw

WASHINGTON (MNI) – Senate Finance Committee Chairman Max Baucus
said Thursday that Congress should pass legislation that grants Russia
permanent normal trade relations and that also repeals the long-standing
Jackson-Vanik law.

In comments during a hearing by the Finance panel on U.S.-Russian
trade, Baucus said it is important that the Congress approves permanent
normal trade relations legislation soon.

“If the United States passes PNTR with Russia, U.S. exports to
Russia are projected to double within five years. If Russia doesn’t pass
PNTR, Russia will join the WTO anyway, and U.S. exporters will lose out
to their Chinese and European competitors. These competitors will expand
their exports at our expense,” he added.

Baucus said Russian joining the WTO “presents a lucrative
opportunity for the U.S. economy and American jobs.”

Baucus said that in addition to passing PNTR for Russia, Congress
should repeal the Jackson-Vanik amendment which was passed in response
to the former Soviet Union’s emigration restrictions.

“Jackson-Vanik served its purpose and helped millions of Jews
emigrate freely, but it is now a relic of the past. Every president,
regardless of political party, has waived Jackson-Vanik’s requirements
for Russia for the past 20 years,” he added.

Sen. Jon Kyl, a senior Republican on the Finance Committee, said
that passage of the bills should not be viewed as a “slam dunk.”

“We still need to determine whether America is getting a good deal
through Russia’s WTO accession, and whether more should be done to
protect our interests,” Kyl said.

Kyl was sharply critical of various Russian national security,
ecomomic and human rights practices.

He said the U.S. can’t “trust” Russia to honor many of its
international agreements.

Sam Allen, the chairman and CEO of the John Deere Company, said the
American business community has long supported Russian membership in
the WTO.

He said business leaders believe its important for Congress to pass
PNTR and the repeal of Jackson-Janik.

“U.S. companies will not be able to receive the full benefits of
Russia’s accession, and thus will be unable to compete for Russian
customers on a level playing field, until Congress passes such
legislation,” Allen said.

** Market News International Washington Bureau: (202) 371-2121 **

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