Industry News

Senate Finance Approves Russia PNTR Bill

July 19, 2012


On July 18, 2012, the Senate Finance Committee approved, by unanimous vote, legislation that would clear the way for the United States to grant Russia Permanent Normal Trade Relations (PNTR). The PNTR bill, which would remove Russia from the Jackson-Vanik amendment, was coupled with the Magnitsky bill, which is designed to hold Russian officials accountable for human rights violations. The Senate Finance Committee’s favorable vote allows the Russia PNTR bill to move to the Senate floor for a full vote.

On July 10, 2012, the Russian Duma ratified Russia’s World Trade Organization accession package, which is still awaiting approval of Russia’s Federation Council. The Russian President has until July 23, 2012, to sign the WTO accession legislation and notify the WTO that Russia has ratified and accepted the terms for its WTO membership. Thirty days after Russia notifies the WTO that it accepts the terms of the accession package, Russia will become a WTO member. The Jackson-Vanik amendment, which is part of Title IV of the Trade Act of 1974, prevents the United States from establishing normal trade relations with Russia. Should Congress fail to remove Russia from the provisions of the Jackson-Vanik amendment, U.S. companies would be at a disadvantage competing in the Russian market once Russia becomes a WTO member.

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