The U.S. Senate on Thursday passed the 2012 Russia and Moldova Jackson-Vanik Repeal Act by a vote of 92-4, clearing the way for U.S. companies to take full advantage of Russia’s recent entrance into the World Trade Organization.
Once signed by President Obama, the United States will grant Russia permanent normal trade relations (PNTR). Russia is the world’s ninth-largest economy, but ranks only 31st as a market for U.S. goods exports.
“We welcome today’s news and applaud the Senate for voting to approve Russia PNTR, an action essential to increasing U.S. exports, growing the U.S. economy and supporting American job creation,” said National Foreign Trade Council President Bill Reinsch in a statement. “We also applaud the bipartisan leadership of the Senate Finance Committee and House Ways and Means Committee for working together to get the bill passed this year.”
As part of its accession to the WTO, Russia will be obligated to bind its agricultural tariffs, adding more predictability to the trading relationship and opening export opportunities for the U.S. agricultural industry, noted the American Soybean Association. WTO membership will also require Russia to adhere to internationally-recognized scientific standards when regulating meat imports, thereby ensuring greater predictability for U.S. exporters seeking to supply the Russian consumer market.
“This action will provide U.S. companies with equal access to the rapidly growing Russian market as enjoyed by Asian and European companies,” said Barry M. Granger, vice president of government marketing and affairs for DuPont.
Russia is a key growth market for DuPont. The U.S. chemical shipper recently opened an Innovation Center in Moscow that will focus on science-based innovation related to food, construction, oil and gas, rail and automotive industries.
With Russia also looking to join the Organization for Economic Cooperation and Development (OECD), the business community wants to work with the U.S. government and others to further open Russia’s economy to foreign trade and investment, U.S. Council for International Business President and Chief Executive Officer Peter M. Robinson said.
Senate passes Russia PNTR legislation
