[Congressional Record Volume 149, Number 117 (Friday, August 1, 2003)]
[Senate]
[Page S10910]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCONNELL (for himself, Mr. Sarbanes, and Mrs. Boxer):
  S. 1557. A bill to authorize the extension of nondiscriminatory 
treatment (normal trade relations treatment) to the products of 
Armenia; to the Committee on Finance.
  Mr. McConnell. Mr. President, I ask unanimous consent that the text 
of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1557

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. FINDINGS.

       Congress makes the following findings:
       (1) Armenia has been found to be in full compliance with 
     the freedom of emigration requirements under title IV of the 
     Trade Act of 1974.
       (2) Armenia acceded to the World Trade Organization on 
     February 5, 2003.
       (3) Since declaring its independence from the Soviet Union 
     in 1991, Armenia has made considerable progress in enacting 
     free-market reforms within a stable democratic framework.
       (4) 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.
       (5) United States-Armenia bilateral trade for 2002 totaled 
     more than $134,200,000.

     SEC. 2. TERMINATION OF APPLICATION OF TITLE IV OF THE TRADE 
                   ACT OF 1974 TO ARMENIA.

       (a) Presidential Determinations and Extensions of 
     Nondiscriminatory Treatment.--Notwithstanding any provision 
     of title IV of the Trade Act of 1974 (19 U.S.C. 2431 et 
     seq.), the President may--
       (1) determine that such title should no longer apply to 
     Armenia; and
       (2) after making a determination under paragraph (1) with 
     respect to Armenia, proclaim the extension of 
     nondiscriminatory treatment (normal trade relations 
     treatment) to the products of that country.
       (b) Termination of Application of Title IV.--On and after 
     the effective date of the extension under subsection (a)(2) 
     of nondiscriminatory treatment to the products of Armenia, 
     title IV of the Trade Act of 1974 shall cease to apply to 
     that country.

  Mr. SARBANES. Mr. President, I rise to join my colleague from 
Kentucky, Senator McConnell, in introducing legislation to grant PNTR 
to Armenia.
  Since becoming an independent sovereign state in 1991, with the 
collapse of the Soviet Union, Armenia has pursued comprehensive 
economic reforms within a democratic framework. Armenia's accession to 
the World Trade Organization this year reflects its continuing progress 
in adopting and implementing economic and trade reforms, and it now 
ranks 44th among the 161 nations surveyed in the ``2003 Index of 
Economic Freedom'' that the Wall Street Journal and the Heritage 
Foundation have jointly published.
  As a one-time Soviet republic, Armenia continues to be subject to the 
freedom-of-emigration requirements set out in Title IV of the Trade Act 
of 1974, the Jackson-Vanik amendment, and therefore its trade status is 
subject to annual review by the President. Since becoming independent 
Armenia has annually received the waiver provided under Jackson-Vanik, 
and indeed for the past 6 years Armenia has been found to be fully in 
compliance with the amendment.
  So long as Armenia remains subject to the Jackson-Vanik provision, 
the United States is precluded from extending PNTR status and 
normalizing U.S.-Armenian trade relations. At the same time, however, 
WTO rules require the United States to grant PNTR to all other WTO 
members without condition. Our legislation would resolve this 
contradiction by authorizing the President to terminate the Jackson-
Vanik provision with respect to Armenia and extend PNTR. Without PNTR, 
neither Armenia nor the United States will be able to realize the full 
benefits of Armenia's accession to the WTO.
  PNTR will bring the United States into compliance with WTO rules. And 
it will significantly expand opportunities for bilateral trade between 
the United States and Armenia.
  In addition, it will enable Armenia to deal more effectively with the 
challenges of building a vigorous and prosperous economy, at a time 
when 50 percent of the population lives in poverty and the poverty rate 
has dropped from 55 percent only in the last 2 years. These challenges 
are made all the more daunting by the blockades that Azerbaijan and 
Turkey continue to impose; according to the World Bank, these blockades 
raise the cost of doing business in Armenia by 30 percent. Expanded 
U.S.-Armenian trade will act as a spur to greater economic activity in 
Armenia, which in turn will lead to more and better-paying jobs and 
ease the hardships that Armenians confront in their daily lives.
  The ties between our country and Armenia are strong, and 
normalization of trade relations will make them stronger still. I urge 
my colleagues to join me in supporting this legislation.
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