[Congressional Record Volume 151, Number 32 (Wednesday, March 16, 2005)]
[Senate]
[Pages S2847-S2848]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LUGAR:
  S. 632. A bill to authorize the extension of unconditional and 
permanent nondiscriminatory treatment (permanent normal trade relations 
treatment) to the products of Ukraine, and for other purposes; to the 
Committee on Finance.

  Mr. LUGAR. Mr. President, I rise today in support of a bill that I 
have introduced authorizing the extension of permanent normal trade 
relations treatment. Ukraine is still subject to the provisions of the 
Jackson-Vanik amendment to the Trade Act of 1974, which sanctions 
nations for failure to comply with freedom of emigration requirements. 
Our bill would repeal permanently the application of Jackson-Vanik to 
Ukraine.
  In the post Cold War era, Ukraine has demonstrated a commitment to 
meet these requirements, and in addition, has expressed a strong desire 
to abide by free market principles and good governance. Last November, 
I served as President Bush's personal representative to the runoff 
election between Prime Minister Yanukovich and Victor Yushchenko. 
During that visit, I promoted free and fair election procedures that 
would strengthen worldwide respect for the legitimacy of the winning 
candidate. Unfortunately, that was not possible. The Government of 
Ukraine allowed, or aided and abetted, wholesale fraud and abuse that 
changed the results of the election. It is clear that Prime Minister 
Yanukovich did not win the election.
  In response, the people of Ukraine rallied in the streets and 
demanded justice. After tremendous international pressure and 
mediation, Ukraine repeated the runoff election on December 26. A newly 
named Central Election Commission and a new set of election laws led to 
a much improved process. International monitors concluded that the 
process was generally free and fair. This past weekend Victor 
Yushchenko was inaugurated as President of Ukraine.
  Extraordinary events have occurred in Ukraine over the last three 
months.

[[Page S2848]]

A free press has revolted against government intimidation and 
reasserted itself. An emerging middle class has found its political 
footing. A new generation has embraced democracy and openness. A 
society has rebelled against the illegal activities of its government. 
It is in our interest to recognize and protect these advances in 
Ukraine.
  The United States has a long record of cooperation with Ukraine 
through the Nunn-Lugar Cooperative Threat Reduction. Ukraine inherited 
the third largest nuclear arsenal in the world with the fall of the 
Soviet Union. Through the Nunn-Lugar Program the United States has 
assisted Ukraine in eliminating this deadly arsenal and joining the 
Nonproliferation Treaty as a non-nuclear state.
  One of the areas where we can deepen U.S.-Ukrainian relations is 
bilateral trade. Our trade relations between the U.S. and Ukraine are 
currently governed by a bilateral trade agreement signed in 1992. There 
are other economic agreements in place seeking to further facilitate 
economic cooperation between the U.S. and Ukraine, including a 
bilateral investment treaty which was signed in 1996, and a taxation 
treaty signed in 2000. In addition, Ukraine commenced negotiations to 
become a member of the World Trade Organization in 1993, further 
demonstrating its commitment to adhere to free market principles and 
fair trade. In light of its adherence to freedom of emigration 
requirements, democratic principles, compliance with threat reduction 
and several agreements on economic cooperation, the products of Ukraine 
should not be subject to the sanctions of Jackson-Vanik.
  There are areas in which Ukraine needs to continue to improve. These 
include market access, protection of intellectual property and 
reduction of tariffs. The U.S. must remain committed to assisting 
Ukraine in pursuing market economic reforms. The permanent waiver of 
Jackson Yanik and establishment of permanent normal trade relations 
will be the foundation on which further progress in a burgeoning 
economic partnership can be made.
  I am hopeful that my colleagues will join me in supporting this 
important legislation. It is essential that we act promptly to bolster 
this burgeoning democracy and promote stability and in this region.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. 632

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

     SECTION 1. FINDINGS.

       Congress finds that Ukraine--
       (1) allows its citizens the right and opportunity to 
     emigrate, free of any heavy tax on emigration or on the visas 
     or other documents required for emigration and free of any 
     tax, levy, fine, fee, or other charge on any citizens as a 
     consequence of the desire of such citizens to emigrate to 
     the country of their choice;
       (2) has received normal trade relations treatment since 
     concluding a bilateral trade agreement with the United States 
     that entered into force on June 23, 1992, which remains in 
     force and provides the United States with important rights;
       (3) has been found to be in full compliance with the 
     freedom of emigration requirements under title IV of the 
     Trade Act of 1974 since 1997;
       (4) has committed itself to ensuring freedom of religion 
     and preventing intolerance;
       (5) has committed itself to continuing its efforts to 
     return religious property to religious organizations in 
     accordance with existing law;
       (6) has taken significant steps demonstrating its 
     intentions to build a friendly and cooperative relationship 
     with the United States including participating in 
     peacekeeping efforts in Europe; and
       (7) has made progress toward meeting international 
     commitments and standards in the most recent Presidential 
     runoff elections, including in the implementation of 
     Ukraine's new elections laws.

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

        (a) Presidential Determinations and Extension of 
     Unconditional and Permanent 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 
     Ukraine; and
       (2) after making a determination under paragraph (1) with 
     respect to Ukraine, proclaim the extension of unconditional 
     and permanent nondiscriminatory treatment (permanent 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 Ukraine, 
     chapter 1 of title IV of the Trade Act of 1974 shall cease to 
     apply to that country.
                                 ______