[Congressional Record Volume 142, Number 36 (Friday, March 15, 1996)]
[Senate]
[Page S2147]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      THE RUSSIAN POULTRY DISPUTE

  Mr. ROTH. Mr. President, I want to say a few words about recent 
developments in the United States-Russian trade relationship. In 
February, Russian Prime Minister Chernomyrdin announced a ban effective 
tomorrow--March 16--against imports of American-produced poultry to 
protect Russian farmers. This proposed ban is of great concern to 
American agriculture and, if imposed, would be a terrible blow to the 
American poultry industry.
  Our poultry sales to Russia have been one of our great exporting 
success stories. In 5 short years, Russia has become the largest 
foreign market for United States-produced chicken and turkey--worth 
over $500 million a year The tremendous growth in popularity of 
American poultry with Russian consumers is due, in no small part, to 
its recognized quality and reasonable price.
  On March first, I sent a letter and spoke to our trade 
representative, Mickey Kantor, expressing my concerns over the proposed 
Russian ban and Moscow's increasing protectionism against foreign 
imports. I ask unanimous consent that a copy of this letter be printed 
in the Record.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:

                                                      U.S. Senate,


                                         Committee on Finance,

                                    Washington, DC, March 1, 1996.
     Hon. Michael Kantor,
     U.S. Trade Representative, Washington, DC.
       Dear Mr. Ambassador: I am writing in reference to our two 
     conversations on the Russian Government's recent ban on 
     imports of United States-produced poultry. Apparently, this 
     ban is part of a broader projectionist plan by the Russian 
     Government to block agricultural imports into Russia. As I 
     told you, these actions will severely hurt the U.S. poultry 
     and agribusiness industries.
       If the Russian Government does not act swiftly to end the 
     ban on poultry imports, I strongly urge the Administration to 
     take forceful retaliatory measures. Immediate action should 
     include: Trade retaliation under Section 301 against imports 
     of Russian products--in particular on imports of aluminum and 
     other ferrous and non-ferrous metals.
       An across-the-board freeze on Export-Import Bank loans and 
     credits to Russia, including the recently approved $1 billion 
     assistance package for the Russian aircraft industry.
       Suspension of U.S. assistance programs to Russia, including 
     those from the U.S. Department of Agriculture and the United 
     States Agency for International Development, which focus on 
     assisting the global competitiveness of the Russian economy.
       Should these measures not result in a satisfactory response 
     from Moscow, the Administration should also reconsider its 
     support for the International Monetary fund's recently 
     concluded $10 billion economic-assistance package for Russia.
       Let me reiterate that I am particularly shocked by these 
     protectionist actions by the Russian Government, given the 
     generous assistance the U.S. has provided in helping Russia 
     to enter the global economy.
       I greatly appreciate your support on this issue, which is 
     of utmost importance to the U.S. poultry and agribusiness 
     industries.
           Sincerely,
                                              William V. Roth, Jr.

  Mr. ROTH. Shortly after I sent that letter, Russian Prime Minister 
Chernomyrdin told Vice President Gore that the ban was off and that 
American poultry exports to Russia could continue uninterrupted. Based 
on press reports, I understand Russia's chief veterinarian still 
threatens to block imports of United States poultry.
  Mr. President, due to these conflicting signals from Moscow, it is 
unclear what action the Russian Government will take. I hope that Prime 
Minister Chernomyrdin is good on his word. We will have to see what the 
Russians do after tomorrow.
  However, if the ban is imposed, I strongly urge the administration to 
take the forceful and immediate responses I outlined in my letter to 
Ambassador Kantor--including retaliation against Russian imports into 
the United States, a freeze on Export-Import Bank loans and credits, 
and suspension of American foreign assistance programs to Russia.
  If these measures should prove to be insufficient, then I would urge 
the administration to reconsider United States support for a $10 
billion assistance package the International Monetary Fund has promised 
Russia.
  Mr. President, if we do not send a strong message to the Russians, it 
will only encourage them to take further protectionist measures that 
will only hurt United States exporters, Russian consumers, and Russia's 
economic development as a full partner in the world economy.
  Russia's apparent swing to protectionism is particularly disturbing 
given the high level of American aid to Russia. Since the end of the 
cold war, the United States has given over $1.5 billion in foreign 
assistance to Russia, not including several billion dollars we have 
provided to promote Russian trade. In light of U.S. generosity, 
Moscow's protectionist bent against American products is simply 
astonishing.
  I trust that the Russian Prime Minister's word will be good, the 
poultry ban will not go into effect, and that Russia's commitment to 
free trade will not weaken, but will grow stronger.

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