House OKs Russia trade bill

Saturday, November 17, 2012

— Flashing some postelection bipartisanship, House Democrats and Republicans joined forces Friday in voting overwhelmingly to end Sovietera trade restrictions so that American manufacturers and farmers can take advantage of Russia’s expanding and more open markets.

The vote to establish permanent normal trade relations with Russia has been a top priority of American businesses concerned that they are being left behind as Europe and China move into Russia’s market of 140 million consumers.

Russia joined the World Trade Organization in August, a move that requires it to lower tariffs and take other market-opening measures. But unless Congress voted to eliminate a 1974 trade restriction and establish permanent trade relations, the United States would be alone among 156 trade organization mem- bers unable to benefit from those new trade rules.

U.S. poultry interests, including those in Arkansas, have pushed for the legislation as a way to increase exports.

Four national poultry groups, including the National Chicken Council in Washington, issued a statement Friday commending House members for passing the legislation and asking the Senate to do the same.

The groups said the legislation will “spur job creation, boost economic growth and be budget-neutral at the same time.”

Granting permanent normal trade relations status to Russia “will ensure that poultry companies can take full advantage of new business opportunities, that Russia's commitments in the WTO are enforced and that American businesses are on an equal playing field in the Russian market,” according to a joint news release from the National Turkey Federation, U.S. Poultry & Egg Association, and USA Poultry & Egg Export Council.

Spokesmen for The Poultry Federation — which represents poultry interests in Arkansas, Missouri and Oklahoma — couldn’t be reached for comment Friday afternoon.

Worth Sparkman, a spokesman for Tyson Foods Inc. in Springdale, declined to comment, deferring to poultry trade associations.

The legislation had stalled before the election as lawmakers shied away from voting for a measure that might appear to be aiding Russia at a time when President Vladimir Putin’s government had become increasingly hostile. Many lawmakers have been mollified by the addition to the bill of a measure that punishes Russian officials involved in human-rights violations. The bill passed on a 365-43 vote.

The action came on the third anniversary of the death of Russian lawyer and whistleblower Sergei Magnitsky, who died in a Russian prison after allegedly being tortured. The human-rights bill bears his name.

“It is very gratifying that the first item out of the chute after the election is something we will be able to do in a bipartisan way,” said Rep. David Dreier, R-Calif., Rules Committee chairman and a strong advocate of free trade.

The legislation, which has the backing of the Obama administration, now goes to the Senate, where the Democratic leadership has indicated it will consider it promptly. Differences remain between the House and the Senate on the human-rights part of the bill: The House bill imposes visa and financial restrictions on Russian officials linked to human-rights abuses. The pending Senate bill would broaden that to human-rights violators around the world.

Numerous House members said they would not have voted for the trade bill without inclusion of the human-rights measure. “The issue that concerns me and many members is not trade but human rights,” said Rep. Ileana Ros-Lehtinen, R-Fla., chairman of the House Foreign Affairs Committee.

The trade bill, unlike bilateral free trade treaties, requires no concessions from the U.S. side. With passage, U.S. companies and farmers would see lower tariffs, better protections for intellectual property and greater access to Russia’s service market and would be able to go to the World Trade Organization to resolve disputes.

The administration and economists have predicted that U.S. exports of goods and services, currently at $11 billion, could double in five years if trade relations are normalized.

The bill, the White House said in a statement supporting its passage, “is about providing opportunities for American businesses and workers and creating jobs here at home.”

The legislation would also extend permanent normal trade relations to Moldova, another former Soviet state.

At issue is the Jackson-Vanik Amendment to a 1974 trade bill that tied trade with the Soviet Union to greater freedom for Jews and other Soviet minorities who were seeking to leave the country. Since the 1990s, U.S. presidents have annually waived the now-obsolete requirement, but it still must be eliminated as part of a permanent trade relations accord.

Information for this article was contributed by Jim Abrams of The Associated Press and Lisa Hammersly of the Arkansas Democrat-Gazette.

Business, Pages 31 on 11/17/2012