[Congressional Record Volume 155, Number 16 (Tuesday, January 27, 2009)]
[Senate]
[Pages S898-S899]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LUGAR:
  S. 334. 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 in Europe 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 
United States has supported Moldova in its journey toward democracy and 
sovereignty.
  The United States enjoys good relations with Moldova and has 
encouraged Moldovan efforts to integrate with Euro-Atlantic 
institutions. Moldova has been selected to participate in the Eastern 
Partnership, an initiative proposed by the European Union in 2008, 
which will facilitate the creation of free trade agreements, energy 
security plans, and closer economic ties between the EU and Moldova.
  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. Furthermore, 
Moldovan

[[Page S899]]

President Vladimir Voronin has recently expressed his desire to sign an 
accord to strengthen relations between Moldova and the European Union 
this year. Until the United States 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 United States 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. In addition, trade increased between the 
two parties by 30 percent in 2007.
  The United States 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 United States 
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.

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