[Congressional Record Volume 154, Number 14 (Tuesday, January 29, 2008)]
[Senate]
[Page S447]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LUGAR:
  S. 2563. A bill to authorize the extension of nondiscriminatory 
treatment (normal trade relations treatment) to the products of 
Azerbaijan; to the Committee on Finance.
  Mr. LUGAR. Mr. President, I rise today to introduce legislation 
designed to extend permanent normal trade relations to Azerbaijan. 
Azerbaijan 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. This bill would 
repeal permanently the application of Jackson-Vanik to Azerbaijan.
  In the post-Cold-War era, Azerbaijan allows its citizens the right 
and opportunity to emigrate and has demonstrated a commitment to meet 
these requirements. In addition, Azerbaijan has expressed a strong 
desire to abide by free market principles and good governance. Since 
1992, Azerbaijan has been certified annually as meeting the Jackson-
Vanik requirements. This legislation would make this trade relationship 
permanent and, in doing so, stimulate further market reforms and 
encourage its continued commitment to safeguarding individual 
liberties.
  The U.S. has a long record of cooperation with Azerbaijan through the 
Nunn-Lugar Cooperative Threat Reduction. Through the Nunn-Lugar Program 
the U.S. has assisted Azerbaijan in safely securing dangerous 
stockpiles of deadly pathogens and infectious diseases and improving 
its ability to interdict weapons and materials of mass destruction. In 
2005 the Nunn-Lugar Program in close coordination with Government of 
Azerbaijan transported 124 samples of 62 unique strains of plague, 
anthrax, cholera, and other dangerous diseases from Baku to the U.S. 
Armed Forces Institute of Pathology in Washington, DC. These strains 
were collected over many years from environmental, human, and animal 
sources in Azerbaijan. The strains will be studied in joint research 
programs with the U.S. Department of Defense and Azerbaijan medical 
researchers.
  Earlier this month I traveled to Azerbaijan and met with President 
Aliyev and the First Lady of Azerbaijan. We had an interesting 
discussion on the important role Azerbaijan is playing in energy 
recovery and transportation. It is a tribute to Azerbaijan that they 
are using their energy resources to the benefit of global security. 
Building pipelines and opening energy production to foreign markets 
requires difficult foreign policy decisionmaking. Azerbaijan is located 
in a tough neighborhood, and countries there are under tremendous 
pressure to keep their distance from the U.S. I thanked President 
Aliyev for taking concrete steps to affirm his country's strategic 
partnership with the U.S.
  I discussed at length with the President and members of his 
Government the possibility of connecting Azerbaijan's energy 
infrastructure with Kazakhstan and Turkmenistan. I encouraged continued 
progress on rapprochement between Governments in Baku and Ashgabat. I 
heard encouraging statements toward improved relations and cooperation 
on energy in both Ashgabat and Baku. It is clear that there is 
willingness for progress.
  Integrating some oil and gas production in Kazakhstan and 
Turkmenistan would diversify export routes for those countries and 
import sources for European nations. Successful integration of such 
trans-Caspian transport routes is a vital contribution to international 
peace and security. In some countries oil and gas revenues are a curse, 
leading to corruption and conflict. Two years ago President Aliyev 
pledged to me that Azerbaijan would follow the Norway model in managing 
its oil and gas revenues. As reflected by the State Oil Fund of 
Azerbaijan's receipt in 2007 of the United Nations Public Service 
Award, it is now on a path of transparency and is investing for 
development today and for future generations. I am hopeful that 
progress in Azerbaijan will continue and other emerging countries learn 
from Azerbaijan's example.
  One of the areas where we can deepen U.S.-Azerbaijan relations is 
bilateral trade. In light of its adherence to freedom of emigration 
requirements, compliance with threat reduction and unwavering 
cooperation in the production and delivery of energy supplies, the 
products of Azerbaijan should not be subject to the sanctions of 
Jackson-Vanik. The U.S. must remain committed and engaged in assisting 
Azerbaijan in pursuing democratic and human rights reforms. The 
Government in Baku still has important work to do in these critical 
areas, including in the area of media freedom and freedom of assembly. 
I discussed the ongoing democratic reforms with President Aliyev during 
my visit and was assured that they are proceeding. Azerbaijan faces an 
important Presidential election this October. The support and 
encouragement of the U.S. and the international community will be key 
to encouraging the Government of Azerbaijan to hold free and fair 
elections. The permanent waiver of Jackson-Vanik and establishment of 
permanent normal trade relations will be the foundation on which 
further progress in a burgeoning economic and energy 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 important relationship and promote stability in this region.
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