US poultry trade welcomes Russia free trade call
Last week, 73 House Republican freshman wrote to President Obama urging him to authorise Permanent Normal Trade Relations (PNTR) with Russia before the country’s entry into the World Trade Organization (WTO).
It warned that, without the authorisation of PNTR, US exporters would be unable to take full advantage of the opportunities present in the Russian market. “We will only hurt ourselves and lose out on economic opportunities and needed jobs to our competitors around the world if we do not act quickly to remove unnecessary barriers to a full trade relationship with Russia,” it said.
The National Chicken Council (NCC), a member of the Coalition for US-Russia Trade, applauded the letter. “As Russia enters into the WTO later this summer, PNTR will ensure that poultry companies can take full advantage of new business opportunities, that Russia’s commitments entering the WTO are enforced and that American businesses are on an equal playing field in the Russian market,” said NCC president Mike Brown.
US competitiveness
The US-Russia Business Council (USRBC), which is actively seeking increased trade with Russia, also expressed appreciation for the House members’ support. “We are delighted to see a record number of House Republican freshmen demonstrating leadership on an issue that seeks to sustain US competitiveness in a growing market,” said president and CEO Edward Verona.
“Russia, the ninth-largest economy in the world, is poised to become a WTO member in a matter of weeks, and US manufacturers, service providers, farmers and their workers should have access to the same economic reforms and market-opening measures that their foreign competitors will, as part of Russia’s WTO accession. We urge President Obama and Congressional leadership to work together to see through enactment of PNTR by the August recess.”
Opening Russia to PNTR will require the repeal of the Jackson-Vanik amendment, a set of trade restrictions first enacted in 1974 to ensure the Soviet Union allowed emigration of its Jewish population. Successive US administrations have granted annual waivers of this agreement since the early 1990s, but the US will be in violation of WTO rules if it does not repeal it altogether, which would allow Russia to penalise US exporters.
Russia’s Senate is due to consider the country’s WTO package of commitments next week. The country will automatically become a WTO member 30 days after the Russian president signs the legislation and notifies the WTO.
