[Congressional Record Volume 154, Number 19 (Wednesday, February 6, 2008)]
[Senate]
[Page S739]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LUGAR:
  S. 2597. A bill to authorize the extension of nondiscriminatory 
treatment (normal trade relations treatment) to the products of 
Moldova; to the Committee on Finance.
  Mr. LUGAR. Mr. President, I rise today to introduce legislation 
designed to extend permanent normal trade relations to Moldova. Moldova 
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 Moldova.
  Moldova is a small country located between Ukraine and Romania. 
Throughout the Cold War it was a part of the Soviet Union. It gained 
its independence from the Soviet Union on August 27, 1991. The U.S. has 
supported Moldova in its journey toward democracy and sovereignty.
  The U.S. enjoys good relations with Moldova and has encouraged 
Moldovan efforts to integrate with Euro-Atlantic institutions. Moldova 
is an active participant in Guam, Georgia, Ukraine, Azerbaijan and 
Moldova, a group of countries that has recently concluded a new trade 
agreement with the EU.
  Since declaring independence from the Soviet Union in 1992, Moldova 
has enacted a series of democratic and free market reforms. In 2001, 
Moldova became a member of the World Trade Organization. Until the U.S. 
terminates application of Jackson-Vanik on Moldova, the U.S. will not 
benefit from Moldova's market access commitments nor can it resort to 
WTO dispute resolution mechanisms. While all other WTO members 
currently enjoy these benefits, the U.S. does not.
  The Republic of Moldova has been evaluated every year and granted 
normal trade relations with the U.S. through annual presidential 
waivers from the effects of Jackson-Vanik. The Moldovan constitution 
guarantees its citizens the right to emigrate and this right is 
respected in practice. Most emigration restrictions were eliminated in 
1991 and virtually no problems with emigration have been reported in 
the 16 years since independence. More specifically, Moldova does not 
impose emigration restrictions on members of the Jewish community. 
Synagogues function openly and without harassment. As a result, the 
Administration finds that Moldova is in full compliance with Jackson-
Vanik's provisions.
  Since declaring independence from the Soviet Union in 1992, Moldova 
has enacted a series of democratic and free market reforms. 
Parliamentary elections in 2005 and local elections in 2007 generally 
complied with international standards for democratic elections. Moldova 
has also contributed constructively towards a resolution of the long-
standing separatist conflict in the country's Transniestria region, 
most recently by proposing a series of confidence-building measures and 
working groups.
  The U.S. and Moldova have established a strong record of achievement 
in security cooperation. In 1997 the Nunn-Lugar Cooperative Threat 
Reduction Program responded to a Moldovan request for assistance. The 
U.S. purchased and secured 14 nuclear-capable MiG-29Cs from Moldova. 
These fighter aircraft were built by the former Soviet Union to launch 
nuclear weapons. Moldova expressed concern that these aircraft were 
unsecure due to the lack of funds and equipment necessary to ensure 
they were not stolen or smuggled out of the country. Specifically, 
emissaries from Iran had shown great interest and had attempted to 
acquire the aircraft. These planes were not destroyed. They were 
disassembled and shipped to Wright Patterson Air Force Base because 
they can be used by American experts for research purposes.
  Moldova has made small, but important, troop contributions in Iraq. 
These contributions include significant demining capabilities and 
contingents of combat troops. I am pleased that the U.S. remains 
prepared to assist in weapons and ammunition disposal and force 
relocation assistance to help deal with the costs of military 
realignments in Moldova and to assist with military downsizing and 
reforms.
  One of the areas where we can deepen U.S.-Moldovan relations is 
bilateral trade. In light of its adherence to freedom of emigration 
requirements, compliance with threat reduction and cooperation in the 
global war on terrorism, the products of Moldova should not be subject 
to the sanctions of Jackson-Vanik. The U.S. must remain committed and 
engaged in assisting Moldova in pursuing economic and development 
reforms. The government in Chisinau still has important work to do in 
these critical areas. The support and encouragement of the U.S. and the 
international community will be key to encouraging the Government of 
Moldova to take the necessary steps to initiate reform. 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.
                                 ______