[WPRT 106-7]
[From the U.S. Government Publishing Office]
106th Congress WMCP:
1st Session COMMITTEE PRINT 106-7
_______________________________________________________________________
SUBCOMMITTEE ON TRADE
OF THE
COMMITTEE ON WAYS AND MEANS
U.S. HOUSE OF REPRESENTATIVES
__________
WRITTEN COMMENTS
ON THE
EXTENSION OF UNCONDITIONAL NORMAL TRADE RELATIONS TO ALBANIA, ARMENIA,
GEORGIA, AND MOLDOVA
[GRAPHIC] [TIFF OMITTED] CONGRESS.#13
DECEMBER 22, 1999
Printed for the use of the Committee on Ways and Means by its staff
COMMITTEE ON WAYS AND MEANS
BILL ARCHER, Texas, Chairman
PHILIP M. CRANE, Illinois CHARLES B. RANGEL, New York
BILL THOMAS, California FORTNEY PETE STARK, California
E. CLAY SHAW, Jr., Florida ROBERT T. MATSUI, California
NANCY L. JOHNSON, Connecticut WILLIAM J. COYNE, Pennsylvania
AMO HOUGHTON, New York SANDER M. LEVIN, Michigan
WALLY HERGER, California BENJAMIN L. CARDIN, Maryland
JIM McCRERY, Louisiana JIM McDERMOTT, Washington
DAVE CAMP, Michigan GERALD D. KLECZKA, Wisconsin
JIM RAMSTAD, Minnesota JOHN LEWIS, Georgia
JIM NUSSLE, Iowa RICHARD E. NEAL, Massachusetts
SAM JOHNSON, Texas MICHAEL R. McNULTY, New York
JENNIFER DUNN, Washington WILLIAM J. JEFFERSON, Louisiana
MAC COLLINS, Georgia JOHN S. TANNER, Tennessee
ROB PORTMAN, Ohio XAVIER BECERRA, California
PHILIP S. ENGLISH, Pennsylvania KAREN L. THURMAN, Florida
WES WATKINS, Oklahoma LLOYD DOGGETT, Texas
J.D. HAYWORTH, Arizona
JERRY WELLER, Illinois
KENNY HULSHOF, Missouri
SCOTT McINNIS, Colorado
RON LEWIS, Kentucky
MARK FOLEY, Florida
A.L. Singleton, Chief of Staff
Janice Mays, Minority Chief Counsel
______
Subcommittee on Trade
PHILIP M. CRANE, Illinois, Chairman
BILL THOMAS, California SANDER M. LEVIN, Michigan
E. CLAY SHAW, Jr., Florida CHARLES B. RANGEL, New York
AMO HOUGHTON, New York RICHARD E. NEAL, Massachusetts
DAVE CAMP, Michigan MICHAEL R. McNULTY, New York
JIM RAMSTAD, Minnesota WILLIAM J. JEFFERSON, Louisiana
JENNIFER DUNN, Washington XAVIER BECERRA, California
WALLY HERGER, California
JIM NUSSLE, Iowa
Pursuant to clause 2(e)(4) of Rule XI of the Rules of the House, public
hearing records of the Committee on Ways and Means are also published
in electronic form. The printed record of written comments remains the
official version. Because electronic submissions are used to prepare
both printed and electronic versions of the hearing/written comments
record, the process of converting between various electronic formats
may introduce unintentional errors or omissions. Such occurrences are
inherent in the current publication process and should diminish as the
process is further refined.
C O N T E N T S
__________
Page
Advisory of October 4, 1999, announcing request for written
comments on the extension of unconditional normal trade
relations to Albania, Armenia, Georgia, and Moldova............ 1
______
Armenian Assembly of America, Ross Vartian, letter............... 3
Atlantic Council of the United States, Hon. Roger Kirk, letter... 5
Distilled Spirits Council of the United States, Mark Z. Orr,
letter......................................................... 6
Engel, Hon. Eliot L., a Representative in Congress from the State
of New York; Hon. Steny H. Hoyer, a Representative in Congress
from the State of Maryland; Hon. Sue W. Kelly, a Representative
in Congress from the State of New York; Hon. Jerrold Nadler, a
Representative in Congress from the State of New York; Hon.
James P. Moran, a Representative in Congress from the State of
Virginia; Hon. Tim Roemer, a Representative in Congress from
the State of Indiana; Hon. Marcy Kaptur, a Representative in
Congress from the State of Ohio; Hon. Judy Biggert, a
Representative in Congress from the State of Illinois; Hon.
Vito Fossella, a Representative in Congress from the State of
New York; Hon. Donald M. Payne, a Representative in Congress
from the State of New Jersey; Hon. Joseph Crowley, a
Representative in Congress from the State of New York; Hon.
John W. Olver, a Representative in Congress from the State of
Massachusetts; Hon. Peter T. King, a Representative in Congress
from the State of New York; Hon. Christopher H. Smith, a
Representative in Congress from the State of New Jersey; Hon.
Nita M. Lowey, a Representative in Congress from the State of
New York; Hon. James P. McGovern, a Representative in Congress
from the State of Massachusetts; Hon. David E. Bonior, a
Representative in Congress from the State of Michigan; and Hon.
James H. Maloney, a Representative in Congress from the State
of Connecticut, joint letter................................... 7
JBC International, James Clawson, letter......................... 8
National Albanian American Council, Ilir Zherka, statement....... 8
National Conference on Soviet Jewry, statement................... 9
Union of Councils for Soviet Jews, Micah H. Naftalin, and Gideon
Aronoff, letter and attachment................................. 11
U.S.-Albanian Foundation, Jim Xhema, letter...................... 14
ADVISORY
FROM THE
COMMITTEE
ON WAYS
AND
MEANS
SUBCOMMITTEE ON TRADE
CONTACT: (202) 225-1721
FOR IMMEDIATE RELEASE
October 4, 1999
No. TR-16
Crane Announces Request for
Written Comments on the Extension of
Unconditional Normal Trade Relations to
Albania, Armenia, Georgia, and Moldova
Congressman Philip M. Crane (R-IL), Chairman, Subcommittee on Trade
of the Committee on Ways and Means, today announced that the
Subcommittee is requesting written public comments for the record from
all parties interested in the extension of unconditional normal trade
relations (NTR) to Albania, Armenia, Georgia, and Moldova.
BACKGROUND:
At present, the trade status of Albania, Armenia, Georgia, and
Moldova is subject to the Jackson-Vanik amendment to Title IV of the
Trade Act of 1974 (P.L. 93-618), the provision of law governing the
extension of NTR to nonmarket economy countries ineligible for such
status as of the enactment of the Trade Act. A country subject to this
provision may gain conditional NTR, including NTR tariff treatment,
only by complying with the freedom-of-emigration criteria under the
Trade Act and by concluding a bilateral commercial agreement with the
United States providing for reciprocal nondiscriminatory treatment. The
extension of NTR is also subject to Congressional approval. The Trade
Act authorizes the President to waive the requirements for full
compliance of the emigration criteria with respect to a particular
country if he determines that such a waiver will substantially promote
the freedom-of-emigration provisions and if he has received assurance
that the emigration practices of the country will lead substantially to
the achievement of those objectives.
On May 14, 1992, a bilateral trade agreement was signed with
Albania, and on May 20th the President determined that a Jackson-Vanik
waiver for Albania would substantially promote achievement of the
emigration objectives in the statute. The waiver entered into force on
June 3, 1992, under Executive Order 12908. A joint resolution approving
of extension of conditional NTR, then known as most-favored-nation
treatment, to Albania was enacted on August 26, 1992 (P.L. 102-363).
NTR was first extended to Albania on November 2, 1992, following the
exchange of written notices between the United States and Albania on
the acceptance of the bilateral trade agreement. NTR continued under
annual extensions of the Jackson-Vanik waiver until December 5, 1997,
when Albania was found to be in full compliance with the statutory
emigration criteria. Albania's compliance with these criteria removes
the need for continued waivers, although the country remains subject to
the terms of the Jackson-Vanik amendment.
On June 1, 1990, the United States concluded a bilateral trade
agreement with the Soviet Union, which was approved by Congress in a
joint resolution signed into law on December 9, 1991 (P.L. 102-197). In
Proclamation 6352 of October 9, 1991, the President proclaimed that
this agreement had entered into force and nondiscriminatory treatment
would be extended to the products of the Soviet Union. Subsequently,
the Soviet Union was succeeded by 12 independent states including
Armenia, Georgia, and Moldova.
On April 6, 1992, the President issued Executive Order 12798
waiving the Jackson-Vanik criteria with respect to Armenia. NTR was
first extended to Armenia effective April 7, 1992, following an
exchange of diplomatic notes on that day applying the provisions of the
bilateral agreement with the Soviet Union in a new bilateral trade
agreement with Armenia. This was followed by a Presidential
determination on April 13, 1992, that Armenia's waiver would
substantially promote the emigration objectives of the Trade Act.
On May 6, 1992, the President determined that Jackson-Vanik waivers
for Georgia and Moldova would substantially promote achievement of the
freedom-of-emigration criteria in the statute. This determination was
followed on June 3, 1992, by Executive Order 12908, under which each
country's Jackson-Vanik waiver entered into force. NTR was extended to
Moldova effective July 2, 1992, following an exchange of diplomatic
notes applying the provisions of the United States-Soviet Union
agreement to Moldova in a new bilateral agreement. NTR was extended to
Georgia effective August 13, 1993, after a similar exchange of
diplomatic notes.
NTR with Armenia, Georgia, and Moldova continued in effect under
annual Presidential waivers in subsequent years. On June 3, 1997, the
President determined that Armenia, Georgia, and Moldova were in full
compliance with the Jackson-Vanik freedom-of-emigration criteria. This
determination removed the need for future waivers to continue NTR,
although each country's trade status remains subject to the terms of
the Jackson-Vanik amendment.
Pursuant to section 122 of the Uruguay Round Agreements Act (P.L.
103-465) requiring Congressional consultation prior to country
accessions to the World Trade Organization (WTO), the United States
Trade Representative (USTR) transmitted detailed materials to the
Committee on Ways and Means on September 7, 1999, on the pending
accession of Georgia to the WTO. On September 30, 1999, USTR issued a
press release announcing the conclusion of bilateral negotiations on
the terms of Albania's accession to the WTO. The Administration has
advised the Committee that Armenia and Moldova may also accede to the
WTO in the near future. Because the United States has not extended
unconditional NTR to these countries as a result of the application of
the Jackson-Vanik amendment, the United States would have to invoke the
non-application clause of the WTO (Article XXXV) at the time of their
accessions, meaning that the United States would not apply the WTO
Agreements to Albania, Armenia, Georgia, and Moldova.
On August 5, 1999, Rep. Eliot Engel (D-NY) introduced H.R. 2746,
legislation authorizing the President to determine that the Jackson-
Vanik amendment should no longer apply to Albania. If the bill were to
become law, the United States would be able to extend unconditional NTR
to Albania, and all rights and obligations under the WTO agreed to by
the two countries would apply upon its accession. No legislation has
been introduced yet on the trade status of Armenia, Georgia, or
Moldova.
DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:
Any person or organization wishing to submit a written statement
for the printed record should submit six (6) single-spaced copies of
their statement, along with an IBM compatible 3.5-inch diskette in
WordPerfect 5.1 format, with their name, address, and comments date
noted on label, by the close of business, Friday, October 15, 1999, to
A.L. Singleton, Chief of Staff, Committee on Ways and Means, U.S. House
of Representatives, 1102 Longworth House Office Building, Washington,
D.C. 20515.
FORMATTING REQUIREMENTS:
Each statement presented for printing to the Committee by a
witness, any written statement or exhibit submitted for the printed
record or any written comments in response to a request for written
comments must conform to the guidelines listed below. Any statement or
exhibit not in compliance with these guidelines will not be printed,
but will be maintained in the Committee files for review and use by the
Committee.
1. All statements and any accompanying exhibits for printing must
be submitted on an IBM compatible 3.5-inch diskette in WordPerfect 5.1
format, typed in single space and may not exceed a total of 10 pages
including attachments. Witnesses are advised that the Committee will
rely on electronic submissions for printing the official hearing
record.
2. Copies of whole documents submitted as exhibit material will not
be accepted for printing. Instead, exhibit material should be
referenced and quoted or paraphrased. All exhibit material not meeting
these specifications will be maintained in the Committee files for
review and use by the Committee.
3. A witness appearing at a public hearing, or submitting a
statement for the record of a public hearing, or submitting written
comments in response to a published request for comments by the
Committee, must include on his statement or submission a list of all
clients, persons, or organizations on whose behalf the witness appears.
4. A supplemental sheet must accompany each statement listing the
name, company, address, telephone and fax numbers where the witness or
the designated representative may be reached. This supplemental sheet
will not be included in the printed record.
The above restrictions and limitations apply only to material being
submitted for printing. Statements and exhibits or supplementary
material submitted solely for distribution to the Members, the press,
and the public during the course of a public hearing may be submitted
in other forms.
Note: All Committee advisories and news releases are available on
the World Wide Web at `HTTP://WWW.HOUSE.GOV/WAYS__MEANS/'.
Armenian Assembly of America
Washington, DC 20001
October 15, 1999
Congressman Philip M. Crane
Chairman, Subcommittee on Trade of the Committee on Ways and Means
1104 Longworth House Office Building
Washington, DC 20515
Dear Mr. Chairman:
The Armenian Assembly of America strongly supports the extension of
unconditional normal trade relations to Armenia. Armenia's strategic
location at the crossroads of Europe and Asia, democratic stability,
entrepreneurial spirit and western value system make Armenia an
increasingly important partner for the United States in the Caucasus
region. Armenia is poised to play a pivotal role as a commercial hub
and has established a positive legal, regulatory and tax climate for
foreign investment, reflecting the country's commitment to open and
free trade.
Since its independence from the Soviet Union in 1991, Armenia has
not wavered from its commitment to the most important shared values
with the United States: a commitment to democracy and a free market
economy. In fact, Armenia's young democracy continues to make great
strides in furthering its free market economy. U.S. Ambassador to
Armenia Michael Lemmon has taken note of Armenia's economic policy,
noting that ``the reform policies undertaken have opened the door to
new international assistance and investment. They are helping to create
the necessary environment in which productive domestic as well as
foreign investment can flourish.''
Armenia views the United States as a strategic partner and friend.
Armenia has demonstrated a strong desire to build a friendly and
cooperative relationship with the United States and has concluded many
bilateral treaties and agreements with the United States, including:
1. Bilateral Investment Treaty signed by the Government of the
Republic of Armenia and the United States of America.
2. Agreement Between the Government of the Republic of Armenia and
the Government of the United States of America Regarding Cooperation to
Facilitate the Provision of Humanitarian and Technical Economic
Assistance.
3. Agreement between the Government of the Republic of Armenia and
the Government of the United States of America on Encouragement of
Investment.
4. Agreement between the Republic of Armenia and the United States
of America on Trade Relations.
5. Basic Agreement Between the Government of the Republic of
Armenia, Central Bank of the Republic of Armenia and the United States
Import/Export Bank on Assistance Programs.
6. Science Agreement of the Government of the Republic of Armenia
and the Government of the United States of America on Science and
Technology Cooperation.
In addition to concluding these treaties, high-level officials from
Armenia and the United States continue to visit each others country to
further the growing, mutually beneficial relationship. This year alone,
several high-level visits have taken place. In April, Armenia's
President Robert Kocharian traveled to Washington to participate in the
50th year celebration of the North Atlantic Treaty Organization (NATO).
During President Kocharian's visit, he had high-level meetings with
Members of Congress and the Administration, including a meeting with
U.S. Secretary of State Madeleine Albright. In August, Congresswoman
Connie Morella led a Congressional delegation to Armenia. The
delegation held extensive meetings at the highest levels and included
meetings with the President, Prime Minister, Speaker of Parliament,
Foreign Minister, Minister of Finance, Minister of Economy, and the
U.S. Ambassador to Armenia. In September, a senior Armenian delegation
led by the Prime Minister of Armenia Vazgen Sargisian traveled to
Washington to participate in the 1999 World Bank Annual Meeting. His
visit also included high-level meetings with Members of Congress and
the Administration, including a meeting with Vice President Al Gore.
The Armenian government's firm fiscal budget reduction policies
have made it a model of effective transition from a command economy to
a free enterprise system. The overwhelming majority of state
enterprises have been privatized or are in the privatization process.
Last year, Armenia secured western investors to take over and modernize
its state-operated Cognac factory and its marquee hotel.
To further promote and facilitate direct foreign investment,
Armenia's Ministry of Trade and Industry created the Investment and
Export Policy Directorate. This newly created department conducted an
in-depth study on ways to improve the foreign investment climate in
Armenia. As a consequence of this study and related consultations, the
Armenian government unveiled plans to further promote foreign
investment via the creation of the Armenian Development Agency (ADA).
The primary purpose of the ADA is to provide ``one stop shopping''
services for potential investors.
As a result of Armenia's economic reforms and financial incentives,
a number of multi-national corporations have undertaken projects in
Armenia, including General Motors, KPMG, Dynasty Mines, Huntsman, Coca-
Cola, Marriott Corporation, and Midland Bank, to name a few. Currently,
the United States is Armenia's second largest trading partner. Kirk
Kerkorian, an American-Armenian industrialist, has pledged $250 million
for a broad range of infrastructure, development and humanitarian
projects in Armenia.
The United States can and should continue to heighten its
activities in promoting and facilitating U.S. direct foreign
investment, trade and economic development in Armenia.
President Clinton has consistently found Armenia to be in full
compliance with the freedom of emigration requirements under title IV
of the Trade Act of 1974. Extending unconditional normal trade
relations to Armenia will not only enhance trade and investment between
the United States and Armenia, but will also enable the United States
to avail itself of all the rights under the World Trade Organization
(WTO) with respect to Armenia when it becomes a member. The United
States has pledged its support for Armenia's accession to the WTO.
Given all of the above, the Armenian Assembly strongly supports the
extension of unconditional normal trade relations to Armenia. We offer
these comments solely on behalf of the Armenian Assembly of America,
Inc. and no other client, person, or organization.
Sincerely,
Ross Vartian
Executive Director
Atlantic Council of the United States
Washington, DC 20006
The Honorable
Philip M. Crane
Chairman
Ways and Means Sub-Committee on Trade
House of Representatives
Washington, DC
Dear Mr. Chairman:
Thank you for asking the Atlantic Council of the United States to
submit comments concerning extension of unconditional Normal Trade
Relations (NTR) to Albania. I am a Vice Chair of the Atlantic Council
and have been Chair of its Balkan Task Force since its inception in
1996. I have also participated actively in the Council's work on Russia
and Ukraine and, by extension, the Newly Independent states, including
Armenia, Georgia, and Moldova, the other countries being considered for
extension of NTR.
I strongly support extension of unconditional NTR to these
countries. They have long since met the criteria of the Jackson-Vanik
amendment. They are on the verge of entering the World Trade
Organization. Their integration into the world economy and the
development of healthy trade relations with them rank among important
foreign policy interests of the United States.
Specifically, with regard to Albania, that country borders one of
the most volatile and dangerous areas in Europe. It emerged earlier in
the decade from one of the most oppressive dictatorships in the world.
It badly needs steadying. Development of healthy commercial relations
with other countries including the United States will promote stability
and growth for Albania. Participation in the WTO will provide Albanian
trade officials and their superiors in government and the legislature
an opportunity for interaction with counterparts from around the world
which will bring benefits far beyond the tangible fruits of good trade
relations. Developing such ties will help stabilize Albania and also
have a salutary effect on the region as a whole.
In a paper published this summer by the Atlantic Council our Balkan
Task Force argued forcefully for a ``regional approach'' to problems in
the Balkans. We recognized that instability in one part can lead to
general instability. Now, through the ``Stability Pact,'' European
nations, with the participation of many others, have taken the lead in
applying such a regional approach. Extending unconditional NTR to
Albania would represent a small, but necessary step by the United
States to further the goal of regional stability in the Balkans.
Sincerely,
Roger Kirk
Former Ambassador to Romania
Chair, Balkan Task Force of the
Atlantic Council of the United States
Distilled Spirits Council
of the United States, Inc.
October 15, 1999
The Honorable Philip M. Crane
Chairman
Subcommittee on Trade
Committee on Ways and Means
U.S. House of Representatives
Washington, D.C. 20515
Re: Extension of Unconditional Normal Trade Relations to Albania,
Armenia, Georgia and Moldova
Dear Mr. Chairman:
On behalf of the (DISCUS), I am writing to express our strong
support for the extension of unconditional normal trade relations (NTR)
to Albania, Armenia, Georgia and Moldova. DISCUS is the national trade
association representing U.S. producers, marketers and exporters of
distilled spirits products.
Over the past several years, DISCUS has been working closely with
officials of the Office of the U.S. Trade Representative in an effort
to secure improved terms of access to the markets of Albania, Armenia,
Georgia and Moldova within the context of their respective accessions
to the World Trade Organization. USTR negotiators have succeeded in
striking market access agreements with these countries which require
them to substantially reduce, and in some cases eliminate, existing
high tariff barriers on imported distilled spirits. In addition, the
respective protocols of accession require these countries to provide
the full range of protection for trademarks and geographical
indications required by the Agreement on Trade Related Intellectual
Property (TRIPs), immediately upon accession.
These excellent agreements will afford U.S. distillers the
opportunity to enter and develop these markets for their products,
while providing the necessary means to protect their commercial
property. The extension of NTR on an unconditional basis to each of
these countries will create the stable trading environment necessary to
enable U.S. distillers to take full advantage of these opportunities.
It also will ensure that U.S. companies are not placed at a competitive
disadvantage vis-a-vis the firms of other WTO members who are prepared
to fully apply the WTO to these countries upon their accession.
For these reasons, we strongly support the early enactment of
appropriate legislation by the Congress extending unconditional NTR to
Albania, Armenia, Georgia and Moldova upon their accession to the WTO.
Sincerely,
Mark Z. Orr
Vice President, International Issues and Trade
Congress of the United States
Washington, DC 20515
October 15, 1999
The Honorable Philip M. Crane
Chairman
Subcommittee on Trade
Committee on Ways and Means
Washington, DC 20515
Dear Chairman Crane:
In response to the Trade Subcommittee's request for written
comment, we express our support for legislation authorizing the
President to determine that the Jackson-Vanik amendment should no
longer apply to Albania. By doing so, we would not only grant
unconditional normal trade relations to Albania and provide for a WTO
relationship between our two countries, but we would recognize
Albania's strong support for the United States and the international
community over the past year.
During the conflict in Kosova, one nation distinguished itself in
its assistance to the allies and the refugees, alike. Albania not only
opened its military bases to American and NATO armed forces, but it
opened its doors to almost 500,000 Kosovar refugees fleeing Milosevic's
tyranny.
Less prominently, however, Albania has made extensive changes to
its trade laws in recent months as it prepares to join the World Trade
Organization at the upcoming Seattle ministerial meeting. These
changes, made at the behest of the United States Trade Representative,
bring Albania's legal code into line with WTO requirements.
Unfortunately, when Albania joins the WTO, the protections and
obligations of the WTO will not apply between the United States and
Albania. This is because Albania's trade status is still conditioned by
the Jackson-Vanik amendment (Title IV of the Trade Act of 1974), unlike
most of Central Europe's former communist countries.
Albania's emigration policies and its bilateral trade relationship
with the United States have met the requirements of Jackson-Vanik for
several years, allowing the President to consistently extend normal
trade relations to Albania. Yet, because America's extension of NTR to
Albania remains conditional--against the WTO rules--our country will
not be able to utilize WTO mechanisms to enforce the organization's
regulations.
We, therefore, strongly support passage of legislation, such as
H.R. 2746, which would graduate Albania from Jackson-Vanik. As you
know, the United States Trade Representative and the State Department
strongly support such legislation.
Given Albania's far-reaching cooperation over the last year, its
steady compliance with Jackson-Vanik rules, and its coming WTO
membership, it is time to take the step which has already been applied
to other new democracies in Central Europe. Congress should now pass a
law graduating Albania from Jackson-Vanik.
Sincerely,
Eliot L. Engel
Steny Hoyer
Sue Kelly
Jerrold Nadler
Jim Moran
Tim Roemer
Marcy Kaptur
Judy Biggert
Vito Fossella
Donald M. Payne
Joseph Crowley
John Olver
Peter King
Chris Smith
Nita Lowey
Jim McGovern
David Bonior
Jim Maloney
JBC International
Washington, DC 20006
Mr. A.L. Singleton
Chief of Staff
Committee on Ways & Means
US House of Representatives
1102 Longworth House Office Building
Washington, DC 20515
Dear Mr. Singleton:
JBC International, an international trade-consulting firm in
Washington, DC, fully supports the extension of unconditional Normal
Trade Relations (NTR) to Albania, Armenia, Georgia, and Moldova. These
countries have engaged in several fundamental changes to open their
markets to US exports. Their political and economic transformations
have allowed them greater harmonization with trade liberalizing
international agreements that will help these nations gain access to
the continued growing of the global economy.
Albania: With accession to the WTO imminent, Albania should be
granted NTR status. By gaining membership to WTO, Albania agrees to all
the statutes currently in place. These include provisions for
democracy, the defense of human rights, as well as opening the Albanian
market. In addition, Albania proved itself a defender of human rights
values in its efforts to aid fleeing refugees from Kosovo.
Armenia: Armenia has shown much dedication to the values for which
the US stands in terms of granting NTR status. Since the breakup of the
Soviet Union, Armenia established itself as a republic with universal
suffrage and the right of self-determination for its citizenry. In
addition, the government of Armenia has committed itself to the WIPO
Treaty, indicating their commitment to the protection of intellectual
property rights. Finally, with half the population living in poverty,
such a bilateral agreement will help the country sustain increased
economic development, providing the US with stronger influence in the
Former Soviet Union.
Georgia: Georgia has demonstrated many characteristics similar to
Armenia. Many industries privatized after the breakup of the Soviet
Union. Georgia also signed the WIPO agreement and is in the WTO
accession process.
Moldova: The government has taken many steps to open its economy.
Through privatization, floating currency and prices, market forces play
a larger role in its economy. The remaining characteristics from the
countries above are also true for Moldova.
We are encouraged that the US Congress, particularly the House Ways
& Means Committee, actively promotes global free trade efforts. These
legislative changes will open many doors for the US, both in terms of
economic expansion of markets and as a tool to further our foreign
policy objectives in these regions. NTR will also contribute to greater
economic development in the individual countries.
JBC International thanks the House Ways and Means Committee for the
opportunity to comment on the extension of NTR to Albania, Armenia,
Georgia and Moldova.
Sincerely,
James Clawson
Statement of Ilir Zherka, Executive Director, National Albanian
American Council
On behalf of the National Albanian American Council, I urge
that, before it recesses this year, the Congress extend normal
trade relations (NTR) to Albania.
Unfortunately, Albania does not currently enjoy normal
trade relations with the United States due to the ``Jackson-
Vanik Amendment'' (Title IV of the Trade Act of 1974). This is
true even though Albania's emigration policies and its
bilateral trade relationship with the United States have met
the requirements of Jackson-Vanik for several years, allowing
the President to consistently extend normal trade relations to
Albania.
Moreover, Albania has made extensive changes at the request
of our Trade Representative to its trade laws recently. Albania
joined the World Trade Organization as a result of these
changes, and the Administration now strongly supports extending
NTR to Albania.
Throughout the last decade, Albania has been a staunch
supporter of NATO and the United States. Moreover, during the
Kosova conflict, Albania opened its military bases to American
and NATO armed forces.
As we renew our efforts to rebuild the Balkans, we should
not leave Albania behind. Extending NTR to Albania is the least
we can do to help an ally of the United States stabilize its
economy. I hope the Congress will take action during this
session to extend NTR to Albania.
Statement of National Conference on Soviet Jewry
INTRODUCTION
The National Conference on Soviet Jewry (``NCSJ'')
appreciates the opportunity to share its written comments on
the extension of Normal Trade Relations (``NTR'') to Albania,
Armenia, Georgia, and Moldova. NCSJ is confident of the
commitment by the U.S. Congress and, in particular, Members of
the Ways and Means Subcommittee on Trade, to the protection of
minority rights that has been the hallmark of the Jackson-Vanik
Amendment during the past 25 years. Since NCSJ's role
representing the organized American Jewish community is
confined to conditions and policies with respect to the
successor states of the former Soviet Union, these comments
will not address the question of Albania's trade status and
focus instead on the three successor states of Armenia,
Georgia, and Moldova.
NCSJ has supported, within the legal framework of the
Jackson-Vanik Amendment, Presidential decisions to extend Most-
Favored Nation (``MFN'') status to certain former Soviet
Republics through the exercise of waivers and determinations of
compliance. It is not the position of NCSJ that the terms of
Jackson-Vanik should apply in perpetuity to the former
republics of the Soviet Union. Rather, an ongoing process
within these newly independent countries of developing the
legal structure for guaranteeing basic human rights for their
Jewish citizens--and thereby for other citizens as well--should
lead to eventual graduation. NCSJ is currently assessing
whether Armenia, Georgia and Moldova should be thus graduated,
by an act of Congress, from the Jackson-Vanik framework.
TERMS OF REFERENCE
Although the Jackson-Vanik Amendment to Title IV of the
Trade Act of 1974 (P.L. 93-618) focused originally on free
emigration, its application over the years has come to
encompass the observance of internationally recognized human
rights including--but not limited to--the right of emigration.
We believe Congress recognizes that Jackson-Vanik has become an
instrument of U.S. policy for assessing certain countries'
observance of basic human rights. Therefore, the issue before
the Committee is not whether it should approve unconditional
NTR (i.e., MFN) because a country seeks or acquires membership
in the World Trade Organization (``WTO''). Rather, the question
before the Committee should be whether the country seeking
graduation has provided the necessary assurances, and developed
the political and legal guarantees, that warrant its graduation
and--thereby--full acceptance into the international community.
Recognition by former Soviet republics of these basic human
rights, which are fundamental to the existence of Jewish
communities, is the baseline for determining whether NCSJ can
support extension of unconditional NTR.
As with the case of the Kyrgyz Republic, for which NCSJ
submitted written comments on June 11, 1999, the consideration
of graduating from the terms of Jackson-Vanik can be a
constructive process beyond the immediate consequences for
bilateral trade relations. While the enactment of legislation
to graduate Armenia, Georgia and Moldova should be based upon
country-specific criteria, the mechanism for arriving at this
determination should neither be more stringent nor less
rigorous than the standard to be applied to other former
republics of the Soviet Union.
NCSJ believes that any legislation to graduate Armenia,
Georgia or Moldova from Jackson-Vanik should acknowledge
assurances from the respective governments concerning freedom
of emigration and other issues which NCSJ looks forward to
reviewing with the Ways and Means Committee.
The Congressional oversight envisioned by Jackson-Vanik for
the past quarter-century would be undermined if support for
graduation were based primarily upon the accession of a given
state to the WTO. Rather, graduation of any former Soviet
republic should be based upon specific emigration policies as
reflected in a country's legal framework and actual
implementation, and other national policies that affect the
status of ethnic and religious minorities including the Jewish
community. This has been and continues to be the foundation of
the Jackson-Vanik Amendment to which--with rare exception--
virtually every Member of Congress has subscribed, reflecting
the longstanding bipartisan support for its purposes and
objectives. Therefore, graduation must be conditioned upon
Congressional consideration of the following principles:
Emigration, minority rights, and freedom of religion;
Prospects for the incorporation of human rights standards
(including freedom of emigration and religion) into the
country's constitutional and legal structure, into the laws of
the republic, and their protection by the judiciary;
Participation in bilateral and multilateral mechanisms
related to the observance of religious freedom and basic human
rights.
ARMENIA
Armenia's Jewish community is relatively well treated and
maintains a good working relationship with the government. NCSJ
views Armenia as having been in compliance with the freedom of
emigration requirements of Jackson-Vanik. Outstanding issues
include the restitution or substitution of communal property
and the return of religious articles seized under Soviet rule.
A growing relationship with Israel and the West also sends an
encouraging message as to Armenia's future direction.
Recent parliamentary elections demonstrated progress in
both the structure and procedures, especially within the
context of recent elections throughout the region. Armenia's
participation in local and multilateral mechanisms to resolve
regional disputes is also an encouraging sign of future
possibilities. One of Armenia's greatest resources is a
sophisticated and well-educated diaspora community, notably in
the United States, that continues to play a vital role in the
continued development of Armenia's civil society.
GEORGIA
Jews first arrived in Georgia 2,600 years ago, and have
enjoyed relatively good treatment ever since. The government is
responsive to concerns of the Jewish community, despite
outstanding issues of property restitution, and has cultivated
close relations with the United States and Israel.
The personal leadership and vision of President Eduard
Shevardnadze presents a useful model for other Soviet successor
states, but Georgia's future is not yet guaranteed. Beyond the
challenge of developing the next generation of domestic
leaders, instability continues to plague Georgia's geographic
and political fringes. As with Armenia and Moldova, a series of
formal statements by the current government, committing future
leadership and institutions to the same path toward pluralist
democracy and free markets, would enshrine the values and goals
of President Shevardnadze in away that transcends the
application of Jackson-Vanik.
MOLDOVA
Moldova is home to a rich variety of Jewish religious and
cultural life, and the government has positive relations with
Israel. Only a fraction of communal property has been returned
to the Jewish population, in contrast to the Orthodox Church,
which has received nearly all of its outstanding property
claims. Although the Moldovan government has worked closely
with the Jewish community to resolve specific concerns, other
minorities have been subject to discrimination due to ethnicity
or difficulties in using the Moldovan language. Emigration is
generally free, though the law requires consent by dependent
relatives. The law on religion, while not as restrictive as
some others in the former Soviet Union, could potentially be
misused to target individual religions.
CONCLUSION
NCSJ recommends strongly that the Ways and Means Committee
consider legislation that clearly expresses the continued long-
term commitment of the United States to free emigration,
minority rights, and freedom of religion. This should proceed
within the deliberate context of ensuring future adherence to
international norms and obligations, thereby advancing the
goals of Jackson-Vanik. In this regard, NCSJ will continue to
be in contact both with Members of the Committee and the
Committee staff to present its detailed views.
Union of Councils for Soviet Jews
Washington, DC 20006
October 14, 1999
Mr. A. L. Singleton
Chief-of-Staff
Committee on Ways and Means
1102 Longworth House Office Bldg.
Washington, DC 20515
Dear Mr. Singleton:
As an organization that has worked on human rights issues in the
former Soviet Union (FSU), with a specialty in freedom of movement, for
nearly 30 years, the Union of Councils for Soviet Jews (UCSJ) has been
a strong supporter of the Jackson-Vanik Amendment since the
legislation's inception. In our view, the Jackson-Vanik Amendment is
one of the most important statements of the United States' commitment
to human rights and is fundamentally responsible for the great strides
taken to protect emigration rights across the FSU.
In recent years UCSJ has recognized these improvements and has not
objected to the annual waiver of the Jackson-Vanik Amendment. Through
the waiver process, most favored nation (MFN) status has been granted
to the countries of the FSU making them equal with other U.S. trading
partners. UCSJ has maintained that the waiver process serves as a
continued reminder to these countries that they must make protection of
human rights a top priority.
In the cases of Georgia, Armenia and Moldova, UCSJ and its
Tibilisi-based Caucasus-American Bureau on Human Rights and Rule of Law
have supported the annual waiver of the Jackson-Vanik Amendment despite
the continued existence of human rights violations. Our policy remains
to support MFN, now known as normal trade relations (NTR), for these
three countries.
We, on behalf of UCSJ's Board of Directors and President, Yosef
Abramowitz, appreciate the opportunity that the Ways and Means
Committee is providing to comment on possible legislation to
permanently remove Georgia, Armenia and Moldova from the Jackson-Vanik
regime and to grant permanent and unconditional NTR status. The central
question presented here is whether conditions have changed sufficiently
in these three countries to warrant their removal from a system that
has, in UCSJ's opinion, promoted crucial United States and
international values of human rights and democracy.
When it was first enacted the subject matter of the Jackson-Vanik
Amendment was freedom of emigration. In this area, UCSJ finds that
there are no significant direct obstacles to emigration in Georgia,
Armenia and Moldova.
However, for many years the Jackson-Vanik Amendment has
operationally served as a yardstick with which the United States
Government has measured progress on a broad spectrum of human rights
concerns. In this area, particularly in light of the massive social and
economic instability in the region, concerns remain that Georgia,
Armenia and Moldova continue to suffer from human rights violations in
a number of areas.
UCSJ's concerns in these countries, consistent with reporting from
the Department of State, include the following.
In Georgia a campaign is underway to ban the Jehovah's Witness
faith and the Tbilisi Jewish community have been blocked from obtaining
the return of their Synagogue--an effort that has included antisemitic
rhetoric and harassment from the public and the media.
In Armenia serious human rights violations have occurred in the
military, a discriminatory religion law has been enacted and
allegations of torture have been made against the police.
In Moldova journalists are reported to practice significant self
censorship when covering public officials, the state security apparatus
operates largely unchecked and President Petru Lucinschi has undertaken
a campaign to centralize political power in his office thereby
undermining Moldovan democracy.
We have attached a UCSJ statement, Human Rights Concerns in
Georgia, Armenia and Moldova, that provides details on the continuing
struggle for human rights in these countries.
Conclusion
The above discussion, and the attached supplemental
document, demonstrates that many human rights problems remain
in Georgia, Armenia and Moldova. The United States Government
should insist in its negotiations with these governments that
these problems be addressed prior to considering further trade
concessions.
Thus, at this time, UCSJ recommends that the Committee on
Ways and Means not graduate Georgia, Armenia and Moldova from
the terms of the Jackson-Vanik Amendment, while continuing to
support granting NTR through the annual waiver process. This
result offers all of the economic benefits of NTR, but
maintains the vital human rights leverage of the Jackson-Vanik
regime at a time of great instability and change in the region.
Graduation from Jackson-Vanik would also implicitly abandon the
United States' essential statement of its commitment to these
countries' human rights progress.
Thank you for seeking UCSJ's view on this important policy issue.
UCSJ looks forward to working with the Ways and Means Committee as it
reviews possible graduation of Georgia, Armenia and Moldova, as well as
any other countries of the FSU that may be considered in the future.
Sincerely,
Micah H. Naftalin
National Director
Gideon Aronoff
Deputy Director
Enclosure
HUMAN RIGHTS CONCERNS IN GEORGIA, ARMENIA AND MOLDOVA,
October 14, 1999
Georgia
Religious Persecution
The U.S. Department of State's Annual Report on
International Religious Freedom for 1999 reported that a trial
against Jehovah's Witnesses began June 1999 in Tbilisi.
Georgian parliamentary deputy Guram Sharadze asked the court to
revoke their registration on account of their ``anti-state,
anti-national and anti-Orthodox'' activities. Harassment of
Protestant organizations has increased in 1999.
In June 1999, police in the Gldani district of Tbilisi
broke up a series of rallies by the Madli Evangelical Church
and attacked some of its members. Following threats and insults
by the police, the church filed charges with the human rights
ombudsman.
Antisemitism
In August 1999 the Union of Councils for Soviet Jews
released a report on antisemitism in the Caucasus. The study
found increased antisemitism stemming from political
instability, lack of responsiveness by local officials to the
concerns of the Jewish community, and police indifference to
the desecration of Jewish cemeteries in Tbilisi. In addition,
the conflict surrounding the return of the synagogue in Tbilisi
to the Jewish community has led to antisemitic articles in the
media. Also, kidnappers are again targeting the Jewish
community.
The U.S. Department of State's Annual Report on
International Religious Freedom for 1999 reported that the
Jewish community experienced delays in the return of property
confiscated during Soviet rule. Jewish leaders attribute
isolated acts of antisemitism, including the publication of
antisemitic newspaper articles and the destruction of Jewish
communal property, to general instability and disorder.
In August 1999, Stalin's grandson, Yevgeny Jugashvili, who
has made public antisemitic statements in Russia, was elected
the head of the Georgian People's Patriotic
Armenia
Religious Persecution
In September 1999, the U.S. Department of State's Annual
Report on International Religious Freedom for 1999 reported
that the Armenian law on religion forbids proselytizing by any
religion but the Armenian Apostolic Church and that all other
faiths are required to register with the Council on Religious
Affairs. The Jehovah's Witnesses have not been granted
registration. Hazing of new conscripts, a problem throughout
the former Soviet Union, is especially severe for Yezidis and
other ethnic and religious minorities
Antisemitism
The Union of Councils for Soviet Jews published a report on
antisemitism in the Caucasus in August 1999. The report
documents that Israel's growing alliance with Azerbaijan and
Turkey has provoked some antisemitic sentiment by Armenians and
that some Armenians feel that the Holocaust has diverted the
world's attention away from the mass killings of Armenians in
Turkey in 1915.
Human Rights
In January 1999, Human Rights Watch sent a 12-page letter
to Armenian President Robert Kocharyan complaining of human
rights abuses in the country. The group highlighted physical
abuse in the army that has in some cases led to death, physical
abuse by police officers, harassment of journalists, government
sponsored religious intolerance, and abuses during last year's
presidential election. Human Rights Watch urged the Council of
Europe to reject Armenia's application for membership due to
these violations.
In October 1999, the International Helsinki Federation for
Human Rights appealed to President Kocharyan to investigate the
deaths of three men who died in police custody, most likely as
a result of beatings by police officers.
Moldova
Religious Persecution
The U.S. Department of State's Annual Report on International
Religious Freedom for 1999 reported that in the Trans-Dniestr area, a
breakaway region of Moldova controlled by Russian separatists, the
Jehovah's Witnesses have been denied registration.
In February of 1999, the Moldovan Helsinki Committee for Human
Rights accused the Moldovan government of ratifying the European
Convention on Human Rights but not complying with it. The Committee
urged that a new penal code, a policy on national minorities and a non-
discriminatory attitude towards religion be adopted.
On June 25 1999, a partially built Baptist Church in Gelo Mengir
was destroyed by a mob of several hundred Orthodox Christians. A local
Orthodox priest claimed that attack took place because Baptists were
``proselytizing'' in the village.
Antisemitism
The U.S. Department of State's Annual Report on International
Religious Freedom reported that the Jewish community has had mixed
results in recovering its property, in contrast to the Orthodox Church.
Human Rights
In August of 1999, Petru Lucinschi, the President of Moldova,
called for sweeping changes to the country's constitution. He proposed
that power be handed over from the Parliament and executive branch
directly to him so that he would have the right to form, dismiss and
control the government.
The U.S. Department of State's Country Report on Human Rights
Practices for 1998 in Moldova reported that police occasionally beat
detainees and prisoners. Prison conditions remain harsh, with attempts
to improve them are hampered by lack of funding. Security forces
monitor political figures, use unauthorized wiretaps, and at times
conduct illegal searches. The Constitution potentially limits the
activities of the press, political parties, and religious groups.
Journalists practice self-censorship because of a liberal libel law
that allows public officials to sue journalists for criticizing their
public actions.
U.S.-Albanian Foundation
Washington, DC 20005
October 15, 1999
The Honorable Phil M. Crane
Chairman
Subcommittee on Trade
Committee on Ways and Means
Washington, D.C. 20515
Dear Mr. Chairman:
The U.S.-Albanian Foundation strongly supports the extension of
unconditional normal trade relations to Albania. We urge the Committee
to report out favorably legislation authorizing the President to
determine that Albania has met the requirements of the Jackson-Vanik
amendment regarding emigration policy.
Admirably, Albania has assisted Albanians in the Balkan region who
have fled the tyranny of the Milosevic regime. Throughout the recent
conflict, Albania clearly demonstrated its support for the principles
and the people, which the United States sought to affirm and defend.
While Albania must still take many steps to further establish
democracy and a free market, with the support of the United States
these goals can be met. We believe it is manifestly in the interest of
the United States to support Albania on its path to joining the
international democratic community and becoming a stable partner in the
Balkan region.
The U.S.-Albanian Foundation was created in 1998 to promote
democratic and free market principles which will help Albanians in the
Balkan region build a better future for themselves. The Foundation
assists current and future democratic leaders and opinion-makers in
learning the practices and skills of a civil society. The U.S.-Albanian
Foundation is a not-for-profit foundation incorporated in the District
of Columbia committed to the democratic and economic development of
Albania and Albanians in the Balkan region by managing educational and
technical training programs consistent with democratic, pluralistic and
free market principles.
The Foundation's programs are modeled on the successful programs
of the U.S.-Baltic Foundation which for ten years has designed and
managed education and democratic institution building programs for non-
governmental organizations, independent media, public administration
and local government in Estonia, Latvia and Lithuania. These programs
have trained thousands of Baltic leaders and established eight
permanent local democratic training institutions. The U.S.-Baltic
Foundation has also united all Americans, ethnic and non-ethnic, who
care about the Baltics into a constituency of over 4,000 American
program volunteers and donors.
The value of the exchange of Americans from all around the United
States and the creation of permanent local democratic institutions have
forged links between the United States and the Baltic countries whose
value far exceeds the initial investment--made through public-private
partnerships--in the programs.
The U.S.-Albanian Foundation's mission is to distinguish itself as
an innovative, independent not-for-profit whose programs--such as
scholarships to study or gain professional experience through
internships in the United States for promising future Albanian
leaders--will serve as a bridge between Albanians in the Balkan region
and an American network of professional resources in the fields of NGO
management, education, local governance, free market development and
independent media.
When Albania joins the WTO, Albania should be prepared to meet the
obligations, as well as to enjoy the protections, of membership.
However, if Albania's trade status remains conditioned by Jackson-
Vanik, it will be at a disadvantage to most of the other Central
European former communist countries who are no longer governed by Title
IV.
The U.S.-Albanian Foundation therefore strongly supports passage
of legislation, such as H.R. 2746, which would graduate Albania from
Jackson-Vanik. This step will go a long way in securing American
support and ensuring future prosperity for Albanians in the Balkan
region.
Sincerely,
Jim Xhema
President, U.S.-Albanian Foundation
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