[Congressional Record Volume 158, Number 155 (Wednesday, December 5, 2012)]
[Senate]
[Pages S7430-S7435]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          RUSSIA-MOLDOVA PNTR

  Mr. KERRY. Mr. President, the chairman of the Finance Committee, 
Senator Baucus, is tied up right now with a scheduling conflict, 
working on the fiscal cliff issue, so he asked me if I would kick off 
the debate with respect to the Russia PNTR, H.R. 6156, the Russia and 
Moldova Jackson-Vanik Repeal and Sergei Magnitsky Rule of Law 
Accountability Act of 2012.
  I am very happy to do this on behalf of Senator Baucus. We share a 
great partnership together as chairman of our two committees focused on 
trade and on the relationship with Russia, both of which come together 
in the legislation today.
  I would be remiss, however, if I didn't say a word about what 
consumed us yesterday with the vote on the disabilities treaty. It is 
certainly a moment that stands out in my memories of my time in the 
Senate. I can't think of any other time when a former majority leader 
has come to the floor--a veteran--who sought to have his colleagues 
join together in supporting something that would improve the lives of 
people with disabilities.
  I am not going to go back and reargue it now. That would be fruitless 
and I think not helpful to where we want to move to. What we want to 
move to is a place where we can pass this. I can say--I believe this--I 
can say to Senator Robert Dole that we will pass the disabilities 
treaty and we will pass it, I believe, early next year. I base that on 
the fact that some Senators had difficulties with the fact that we are 
in a lameduck session and they had signed a letter which, regrettably, 
some of them didn't digest completely but nevertheless signed, saying 
they wouldn't take up a treaty in a lameduck session and I think some 
felt compelled by that and others felt compelled by other things.
  But here is what I think we can do. Starting next year, I believe we 
can move to additional hearings that can make crystal clear to all 
colleagues the state, as it may not have been yesterday in some cases, 
with respect to both the law and the facts as it applies to persons 
with disabilities. I pledge now to make certain that within the 
resolution of advice and consent, any concern that was not adequately 
addressed--I personally believe they were addressed--it is possible we 
can find the language that will address the concerns of any Senator who 
yesterday felt--whether it was the United Nations or homeschooling, I 
believe those things can be adequately addressed. I do know a number of 
Senators said they would be prepared to vote for it after we are out of 
the lameduck session, and I am confident we will pass the disabilities 
treaty in a different atmosphere and in a different time.
  One of the things I learned from my senior colleague Ted Kennedy, who 
did this for so many years, is that perseverance pays off when the 
issue is worth fighting for and we always have another day and another 
vote in the Senate. That always affords us the opportunity to make 
things right. We are certainly going to try and do that.
  This PNTR-Magnitsky bill is, in fact, one of those opportunities 
where we can start to put the Senate on the right track, and I think 
all of us look forward to the chance to be able to do that.
  This bill passed the House of Representatives by a huge margin of 365 
to 43. What it would do is establish permanent normal trade relations 
for Russia, and it would require the identification and imposition of 
sanctions on individuals who are responsible for the detention, abuse 
and death of Sergei

[[Page S7431]]

Magnitsky and other gross violations of human rights.
  Let me make my best argument, if I can, in favor of the bill, and 
then I wish to turn the discussion over to the ranking member, Senator 
Hatch, to present his case for passage. After that, the Presiding 
Officer of the Senate at this moment, the Senator from Maryland, Mr. 
Cardin, will lead a discussion of the provisions of the act related to 
honoring the memory of Sergei Magnitsky and combating the types of 
human rights abuses that led to his premature and tragic death. I wish 
to congratulate the Presiding Officer and salute him for his 
significant efforts. He has been dogged, and that component of this 
legislation would not be here today if it weren't for the efforts of 
the Senator from Maryland. Chairman Baucus will then have been able to 
return to manage the rest of the consideration on the floor at that 
time.
  As the Presiding Officer knows, Chairman Baucus and I lead the two 
Senate committees that are charged with overseeing the twin pillars of 
America's unique role in the world. Our commitment to open, transparent 
and free markets and our commitment to democracy and open discourse is 
a force for international peace. We believe our global economic 
interests and our foreign policy values are closely tied together. They 
should be closely tied together. That is why we urge our colleagues to 
seize this opportunity that Russia's accession to the World Trade 
Organization presents for both job creation and our ability to bind 
Russia to a rule-based system of trade and dispute resolution.
  Granting Russia permanent normal trade relations is as much in our 
interests as it is in theirs. Frankly, that is what ought to guide the 
choices we make in the Senate. The upside of this policy is clear on an 
international landscape. It is one that rarely offers this kind of what 
I would call, frankly, a kind of one-sided trade deal--one that 
promises billions of dollars in new U.S. exports and thousands of new 
jobs in America. That is certainly in our interests.
  Today, Russia is the world's seventh largest economy. Having 
officially joined the WTO on August 22, Russia is now required by its 
membership in the WTO to lower tariffs and open to new imports. That 
sudden jump in market access is, frankly, important to any country that 
is the first country through the door, and if we don't pass this trade 
legislation, we will not be among those countries.
  I can tell my colleagues Massachusetts, speaking for my State, 
welcomes access to the Russian market, and we want that access to be 
played out on a level playing field. The State of Massachusetts 
exported $120 million worth of goods to Russia last year, and those 
exports obviously support hundreds of jobs. But if we don't pass this 
bill, those exports will face competition from other countries that 
will not pay the same high-level tariff we currently pay.
  Let's take one specific example. Massachusetts exported $18.5 million 
in medical equipment to Russia in 2011, but we face strong competition 
from China, which has increased its share of the Russian market in each 
of the last 10 years. We don't shy away from strong competition, but we 
want that competition to be able to be played out on an even playing 
field. As long as we don't have normal permanent trade relations with 
Russia, we are disadvantaging ourselves. It simply doesn't make sense. 
Since joining the WTO, Russia agreed to reduce average tariffs on 
medical equipment to 4.3 percent and to cut its top tariffs from 15 
percent down to 7 percent. As it stands now, that is a benefit China 
will get and we will not. It simply doesn't make sense to anybody.

  To grant Russia PNTR status requires us to repeal the 1974 Jackson-
Vanik amendment. A lot of our staff members, I hasten to say, were not 
even born back when Jackson-Vanik was put in place. Many of our 
colleagues and a lot of our staff have studied the Soviet Union but 
have never experienced that period of time. What we are living with is 
a complete and total relic of a bygone era.
  Congress passed Jackson-Vanik during the Cold War to pressure the 
Soviet Union to allow Russian Jews to be able to emigrate freely. It 
was very successful. It worked, and as a result, the Kremlin worked 
with us and others to help Jews be able to emigrate. As a result, every 
single U.S. President has, regardless of political party, waived 
Jackson-Vanik's requirements for Russia since 1994. The American-Israel 
Public Affairs Committee, the National Conference on Soviet Jewry, and 
the Government of Israel now all support the repeal of Jackson-Vanik 
for Russia. With too many Americans still searching for jobs all across 
our country, our manufacturing sector needs every boost it can get. We 
cannot afford to retain Jackson-Vanik any longer. This is in America's 
interest. Despite progress, our trade deficit remains too wide, and I 
think that seizing this opportunity to increase exports to Russia is 
one very obvious way to be able to make concrete progress in reducing 
that trade deficit.
  U.S. exports to Russia total more than $9 billion a year. 
Establishing PNTR for Russia could double that number in just 5 years, 
according to one recent study. That could mean thousands of new jobs 
across every sector of our economy. With the Russian economy's 
impressive growth, it is actually--Russia is expected to outgrow 
Germany by about 2029, so it is steadily growing in the world 
marketplace. The long-run gains for everybody would be even greater.
  None of us is going to suggest that every issue with respect to 
Russia has been resolved. We know there are still points of tension, 
and some of them in the foreign policy area are very relevant today, 
for instance, over Syria. We understand that. We hope recent events in 
Syria may be moving Russia and the United States closer in terms of our 
thinking. But it is only a good thing to bring Russia into a rules-
based system with mechanisms for peaceful, transparent dispute 
resolution.
  There is no debate--and I think the Presiding Officer knows this full 
well--that the very tragic and senseless death of anticorruption lawyer 
Sergei Magnitsky, who died while in Russian custody--is simply 
unacceptable. It is appalling, and it highlights a human rights problem 
that has grown in its scope, not diminished. It is one we hope to be 
able to resolve with good relationships and good discussions.
  Senator Cardin, the sponsor of that legislation in the House and in 
the Senate, is going to speak shortly about it, and I will leave him to 
describe in full the nature of that particular component of this bill. 
But suffice it to say that human rights, democracy, and transparency 
activists in Russia favor the passage of constructive human rights 
legislation in our Congress, and they also see WTO membership and 
increased trade for the United States as an avenue toward progress. So 
there is no contradiction in what is happening. They understand, as we 
all should, that repealing Jackson-Vanik is not a blanket acceptance of 
any particular policy or approach in Russia. It is certainly not an 
acceptance of what happened with respect to Sergei Magnitsky and that 
is because of the Magnitsky legislation.
  Repealing the bill--repealing Jackson-Vanik--is not an economic 
giveaway to Russia. To the contrary, it represents, as I have 
described, an enormous opportunity for the United States to compete on 
a fair playing field with other countries and to create more jobs in 
the United States. By establishing PNTR with Russia, U.S. businesses 
will win increased market access without giving up anything in return. 
There would be no tariff changes, no market concessions, nothing. It, 
frankly, diminishes the willingness of some hard-liners in Russia to 
distort the current dialog and to distort the possibilities of a better 
relationship, which we want with Russia. By taking this away, we will 
reduce the abuse of Jackson-Vanik as a rhetorical tool to rally anti-
American sentiment in Russia. I believe we can do something very 
important here today and both our economy and our foreign policy will 
be better for the effort.
  I yield the floor.
  The PRESIDING OFFICER (Mr. Merkley). The Senator from Utah.
  Mr. HATCH. Mr. President, we will soon vote on H.R. 6156, the Russia 
and Moldova Jackson-Vanik Repeal and Sergei Magnitsky Rule of Law 
Accountability Act of 2012. The trade elements of the bill are 
identical to legislation which passed the Senate Finance Committee by 
unanimous vote on July

[[Page S7432]]

18, 2012. The bill repeals the application of the Jackson-Vanik 
amendment to Russia and Moldova, which will enable U.S. workers and job 
creators to fully benefit from Russia and Moldova's accession to the 
World Trade Organization. The bill will also put into place new tools 
to help stop human rights abuse and battle systemic corruption within 
Russia.
  After 18 years of hard fought negotiations under both Republican and 
Democratic administrations, President Obama finalized the terms of 
Russia's accession to the WTO on November 10, 2011. Russia was invited 
to join the organization on December 16, 2011, and officially joined in 
August of this year. Now that Russia is a member of the WTO, for our 
workers to benefit Congress has no choice but to extend permanent 
normal relations to Russia through repeal of the application of the 
Jackson-Vanik amendment.
  Russia is now a member of the WTO, but they are under no obligation 
to extend the economic benefits of their membership to the United 
States unless we have permanent normal trade relations. Simply put, if 
Congress does not act, our workers and exporters will be at a serious 
disadvantage in trying to export their goods and services to the 
Russian market, and that will cost us jobs at home. Given our weak 
economic recovery, if it is a recovery, it is critical that Congress 
does everything it can to help U.S. workers to compete.
  There are many economic benefits to Russia's WTO accession. Under the 
terms of its accession, Russia must cut tariffs on manufactured 
products, reduce duties on farm products, open its service markets to 
U.S. firms, meet international intellectual property rights standards, 
and reduce customs clearance fees. If Russia fails to meet any of its 
commitments, Russia will be subject to WTO dispute settlement 
proceedings.
  Russia is an attractive market for American exporters. It is the 
world's 11th largest economy with more than 140 million consumers and 
the last major economy to join the World Trade Organization. American 
companies and workers must compete on a level playing field with their 
foreign competitors in Russia to succeed.
  When President Obama first asked Congress to remove Russia from 
longstanding human rights legislation and grant permanent normal trade 
relations for Russia, he suggested that we do it unconditionally. Even 
before Russia joined the WTO, President Obama and his team argued that 
Congress should quickly pass a clean bill. Given the myriad problems we 
have with Russia, it has always been very hard for me to understand 
this position. President Obama and his team appeared almost manic in 
their attempts to avoid offending President Putin and his government or 
doing anything at all to upset their failed reset policy.
  Fortunately, just as Congress did in 1974 when they created Jackson-
Vanik, we insisted on more. Working side by side with our Senate and 
House colleagues in both parties, we drafted a bill which serves our 
economy and replaces the application of the Jackson-Vanik amendment 
with policies more appropriate for the realities in Russia today. We 
should all be justly proud of our bipartisan effort. Basically, the 
bill we will vote on fills many of the gaps in President Obama's policy 
toward Russia.
  For example, rather than ignore continuing human rights abuses and 
corruption in Russia, my friends and colleagues, Senators McCain and 
Cardin, joined together with many others to craft a bill to help combat 
deep-rooted and institutionalized corruption within Russia. This bill 
became the Sergei Magnitsky Rule of Law and Accountability Act. By the 
end of this debate, the American people will be intimately familiar 
with the name Sergei Magnitsky.
  Briefly, Sergei was a Russian tax lawyer investigated by the Russian 
Government for alleged tax evasion and fraud. In reality, Sergei was 
targeted by government officials for his role in uncovering tax fraud 
and corruption within the Russian Government. Sergei was arrested and 
held for 11 months without trial. While in prison, Sergei was subject 
to mistreatment and torture and was eventually beaten to death. 
Unfortunately, such sad stories are all too common in Russia today.
  Rather than tolerate such injustice, my friends, Senators McCain and 
Cardin, introduced legislation to impose sanctions on individuals 
responsible for, or who benefited financially from, the detention, 
abuse, and/or death of Sergei Magnitsky, as well as other human rights 
abusers. Their efforts resulted in the inclusion of provisions in this 
bill which impose visa restrictions and asset freezes on those involved 
in human rights abuses in Russia.
  This will be a powerful new tool to battle corruption within Russia, 
as corrupt Russian officials will no longer be able to travel to the 
United States or hide their ill-gotten gains in many Western 
institutions.
  The Magnitsky Act represents an admirable replacement of the Jackson-
Vanik amendment, and it is designed to address the situation in Russia 
today. President Obama opposed efforts to include these provisions, 
concerned that holding Russian Government officials accountable for 
their crimes might offend President Putin and undermine the 
administration's ill-conceived reset policy.
  I am proud that my House and Senate colleagues stood firm on the side 
of justice and demanded that these provisions be included. Jackson-
Vanik served its purpose with respect to Russia and should be revoked, 
but in its place we should respond to Russia's continued corruption and 
human rights violations.
  There were many other gaps in President Obama's Russia policy. To 
help fill these gaps, I worked with my Senate Finance Committee 
colleagues to add provisions to the permanent normal trade relations 
bill introduced by our chairman, Mr. Baucus, that address a number of 
these issues.
  First, I worked with Senator Kyl to develop language to further 
advance anti-corruption efforts in Russia by requiring the U.S. Trade 
Representative and the Secretary of State to report annually on their 
efforts to promote the rule of law and U.S. investment in Russia. We 
also included a provision to assist U.S. businesses, especially small 
businesses, to battle corruption in Russia by requiring the Secretary 
of Commerce to devote a phone hotline and secure Web site to allow U.S. 
citizens and businesses to report on corruption, bribery, and attempted 
bribery in Russia and to request the assistance of the U.S. Government 
if needed.
  I was also highly disappointed that the administration did not 
finalize an SPS equivalency agreement with Russia before agreeing to 
let them join the WTO. Under an SPS equivalency agreement, Russia would 
recognize our food safety standards as equivalent to its own, thereby 
reducing costs and burdensome paperwork on U.S. exporters. Today's bill 
requires the Trade Representative to continue efforts to negotiate a 
bilateral SPS equivalency agreement with Russia. In an effort to apply 
continued pressure on the administration to resolve these problems, we 
included language requiring the Trade Representative to report to 
Congress annually on Russia's implementation of its WTO sanitary and 
phyto-sanitary obligations.
  Intellectual property rights protection in Russia remains poor. To 
make sure that Russia meets its commitments in this area, we included 
language requiring the Trade Representative to report annually on 
Russia's compliance with its WTO intellectual property rights 
obligations. As part of its accession package, Russia committed to 
joining the WTO Information Technology Agreement. Once they are a 
member, this agreement will allow a number of additional U.S. high-
technology products to be exported to Russia duty free. Unfortunately, 
Russia has to date failed to fully live up to this commitment, even 
though Russia became a member of the WTO in August. To ensure that the 
administration holds Russia's feet to the fire, the Trade 
Representative must report annually on Russia's compliance with this 
commitment as well as its commitment to join the WTO Government 
Procurement Agreement.

  When Ambassador Ron Kirk testified before the committee in June, he 
committed to continue efforts to develop an intellectual property 
rights action plan which implements Russia's obligations under a 2006 
bilateral IPR agreement with the United States. That agreement goes 
beyond Russia's WTO

[[Page S7433]]

commitments, requiring, among other things, that Russia take 
enforcement actions against Russia-based Web sites posting infringing 
content, implement the World Intellectual Property Organization 
copyright treaty and performances and phonograms treaty, and enact a 
system of data exclusivity for pharmaceuticals.
  I understand the administration is working on completing that action 
plan quickly and that our workers will soon be able to benefit from the 
agreement reached in 2006. To ensure that this is the case, this bill 
requires the administration to continue efforts to finalize that 
agreement.
  Russia's WTO commitments go far beyond intellectual property rights. 
Given President Obama's past reluctance to hold Russia accountable for 
its actions, I wanted to make a tool available to Congress and the 
American people to put pressure on the administration to make sure that 
Russia lives up to its international commitments. So we included 
language which provides an opportunity for public comment and hearings 
on Russia's compliance with its obligations. If there are areas where 
Russia is not in compliance with its obligations, the administration is 
required to develop an action plan to address them and then provide an 
annual report on their enforcement efforts to bring Russia into 
compliance.
  I believe this package of modifications vastly improves the bill. The 
Trade Representative's general counsel apparently agrees, stating 
during congressional testimony that ``this bill provides the strongest 
package of enforcement measures for us at USTR to move forward and 
ensure full compliance once Russia joins the WTO.''
  It was over 30 years ago that Senator Henry Jackson and Congressman 
Charles Vanik stood up to their President and demanded that the 
administration address policies that denied individuals, especially 
Jews, the right to emigrate from Russia and other communist nations. 
Their work became known as the Jackson-Vanik amendment. The policies 
embodied in that amendment helped create the environment for literally 
hundreds of thousands of Jews to emigrate from the former Soviet Union, 
many of them to their homeland of Israel.
  Jackson-Vanik served its purpose in Russia, but today we act to 
address the issues on the ground in Russia as we debate this bill. 
Today Congress will once again lead the way to help shape the future of 
U.S.-Russian relations. Approval of this bill will help establish a 
framework for addressing the myriad economic problems we face with 
Russia's Government. If the administration uses these tools 
effectively, we will see the fruits of our efforts, as we one day work 
side by side with a Russia free from corruption and in full compliance 
with its international obligations. I urge my colleagues to join me--
and my colleagues on the other side of the floor and my colleagues here 
who are for this bill--in support of this bill.
  I yield the floor.
  Mr. CARDIN. I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant bill clerk proceeded to call the roll.
  Mr. BAUCUS. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BAUCUS. I understand we are, in effect, debating Russian PNTR. 
Robert Louis Stevenson once said, ``The mark of a good action is that 
it appears inevitable in retrospect.'' When I traveled to Russia in 
February, many doubted that Congress would establish permanent normal 
trade relations, known as PNTR, with Russia this year. But in July the 
Senate Finance Committee unanimously approved legislation to do just 
that. And last month the House of Representatives passed very similar 
Russia PNTR legislation with 365 ``yes'' votes. Passing PNTR clearly is 
a good action for the United States. It is also an obvious one. Why 
obvious? Jobs. PNTR will mean more job opportunities for American 
farmers, ranchers, businesses, and workers.
  Russia is a fast-growing market. For the United States to share in 
that growth, we must first pass PNTR. If we do, American exports to 
Russia are projected to double in 5 years. When Russia joined the World 
Trade Organization in August, it lowered its trade barriers to all WTO 
members who have PNTR with Russia. This is no small matter.
  It includes lower tariffs on aircraft and auto exports, larger quotas 
for beef exports and greater access to Russian telecommunications and 
banking markets. It also includes strong commitments to protect 
intellectual property and to follow sound science on agricultural 
imports. It includes greater transparency on Russian laws and binding 
WTO dispute settlement. All very important.
  One hundred fifty-five countries already receive these benefits in 
Russia. They receive those benefits right now. That is to say, every 
single member of the World Trade Organization--all 155 countries--
except one, the United States of America, receives those benefits. So 
right now, companies and workers in China, Canada, and Europe can take 
full advantage of these export opportunities in Russia, the world's 
sixth largest economy. But U.S. companies and workers cannot.
  We cannot let this stand. When Russia joined the World Trade 
Organization in August, we Americans gave up nothing. We will give up 
nothing if we pass PNTR legislation now. We change no U.S. tariffs, we 
change no U.S. trade laws. This is a one-sided deal in favor of 
American exporters.
  In my home State of Montana, one out of five 5 jobs today is tied to 
agriculture. Ranching is a major driver of our agricultural economy. 
When Montana ranchers can sell more beef in Russia, they can support 
more workers in Montana. It is that simple. It is a similar story in 
States all across our country.
  I know that passing PNTR will not solve all of our trade problems 
with Russia, but it gives us new tools to tackle these problems, such 
as binding dispute settlements. Thanks to the efforts of Senators 
Hatch, Stabenow, Rockefeller, Brown of Ohio, and others, this bill 
includes strong measures to ensure Russian compliance with its WTO 
obligations and that the administration enforces them.
  This legislation also includes the Sergei Magnitsky Rule of Law 
Accountability Act to help fight criminal rights abuses in Russia. In 
1974, Senator Jackson and Congressman Vanik teamed together to pass 
legislation called the Jackson-Vanik bill, which this legislation 
repeals. Jackson-Vanik addressed one of the biggest human rights abuses 
in Russia at that time. And it succeeded. For the last 20 years, Jews 
have been able to freely emigrate from Russia, what Jackson-Vanik was 
trying to address.
  Jackson-Vanik is outdated. Jews can emigrate from Russia and this is 
no longer an issue. Senator Cardin has courageously pushed the 
Magnitsky legislation for years. I commend him. The Magnitsky 
provisions in this legislation address one of the biggest human rights 
abuses in Russia today. The bill would punish those responsible for the 
death of anticorruption lawyer Sergei Magnitsky and others who commit 
human rights violations in Russia. It would do so by restricting their 
U.S. visas and freezing their U.S. assets.
  Passing PNTR along with these provisions is the right thing to do. In 
closing, I urge my colleagues to follow the words of Robert Louis 
Stevenson and take good action. Every day we wait, U.S. farmers, 
ranchers, businesses, and workers fall farther behind their 
competitors. We owe it to them to pass this legislation. We owe it to 
them to make it inevitable.
  I yield the floor and I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant bill clerk proceeded to call the roll.
  Mr. BAUCUS. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BAUCUS. Mr. President, I wonder if the Senator from Ohio is ready 
to speak?
  Mr. BROWN of Ohio. Yes.
  Mr. BAUCUS. How much time does the Senator wish to have?
  Mr. BROWN of Ohio. Five minutes.
  Mr. BAUCUS. I ask unanimous consent that the Senator from Ohio be 
allowed to speak for 5 minutes.
  The PRESIDING OFFICER. Without objection, it is so ordered.

[[Page S7434]]

  Mr. BROWN of Ohio. Mr. President, the bill extending permanent normal 
trade relations to Russia is a positive step for American business and 
American workers. I have been critical of both Democratic and 
Republican administration approaches to trade negotiations and 
enforcement in the past. I think the improved enforcement reporting 
requirements in this legislation are a step in the right direction 
toward monitoring and toward enforcement of Russia's commitments made 
as part of its new membership in the World Trade Organization.
  For too long, both Democratic and Republican administrations have 
negotiated trade agreements that undermine rather than maximize 
American job creation. Too often these agreements have failed to demand 
that our partners follow the same rules we do. Too often our government 
has not held our trade partners accountable when they do not meet 
commitments to which they have already agreed. We have seen this in our 
trade relationship with China for more than a decade. From currency 
manipulation to intellectual property theft, to failing to offer 
reciprocal access to its government procurement market, to hoarding 
rare earth materials, the People's Republic of China has ignored its 
international commitments and obligations.
  For more than a decade, American workers and manufacturers, 
especially in a State such as mine, Ohio, have paid the price. There 
were thousands of lost jobs, a trade deficit that grew from $83 billion 
in 2001 to $295 billion in 2011 and a deficit in auto parts alone that 
went from about $1 billion a decade ago to about $10 billion today.
  More recently, though, President Obama stood up to China issues on 
steel, which led to a new steel mill in Youngstown, OH; more steel jobs 
in Cleveland and Lorain, OH; on tires, which have translated into more 
jobs in Findlay, OH; and on aluminum, which has meant more jobs in 
Heath and Sidney, OH. That is obviously good news in my State and 
around the country. But our experience in China proves we must more 
closely monitor our trade partners' commitments before workers and 
businesses are injured by them.
  As part of its WTO accession, Russia committed to lower tariffs on 
manufactured goods to ensure predictability by capping quota levels and 
to meet international standards on intellectual property rights. I am 
pleased to see the legislation extending Russia PNTR includes 
enforcement measures much stronger than the China PNTR, several based 
on legislation I introduced earlier this year.
  By requiring the U.S. Trade Representative to monitor Russia's 
compliance with its WTO obligations to publish an annual report and our 
actions to promote compliance and establish a formal and public process 
for workers to weigh in on Russia's progress in anticipation and before 
violations or failing to follow the rule of law might take place, we 
can ensure that our trade relations with Russia put our interests first 
to build confidence, that our government can enforce the rules. Again, 
prior to potential misbehavior--as we saw with China--we will likely 
not see this from Russia because of this. Similar to any trade 
agreement, commitments must be adhered to; otherwise, they are not 
worth negotiating.
  As an additional measure of commitment, I appreciate the 
administration's response to my request. Senior personnel at the Office 
of the U.S. Trade Representative, at USTR, who have served our 
government in Russia and are fluent in Russian are held accountable for 
monitoring Russia's compliance with its WTO commitments. Again, this is 
something we didn't do a decade-plus ago with the People's Republic of 
China.
  Japan and Europe have already threatened to take Russia to the WTO 
over a number of unfair trade restrictions, including on autos. The 
United States will need to be vigilant on these issues as well. This 
work that Chairman Baucus did, that the House Ways and Means did, and 
the administration has done and will continue to do gives us that 
opportunity to be more vigilant and more effective.
  Our workers, our farmers, our ranchers, and producers should have 
confidence that the trade deal signed will actually be enforced. For 
companies in my State, such as Proctor & Gamble, Goodyear or Alcoa, 
that stand to export more goods to Russia because of PNTR, enforcement 
of the rules matter. Whether economic opportunities for our businesses 
and our workers from Russia's PNTR, we can't ignore the Russian 
Government's consolidation of power and crackdown on political 
opponents, including the Russian media. Despite these challenges, 
though, we should not turn our backs as Russia continues breaking free 
from its totalitarian past. These are strong economic and democratic 
forces that are moving forward in Russia. These forces for change must 
be supported and must be allowed to grow. We must not forget how far 
Russia has come or how far it has to go.
  About 40 years ago, Senator Jackson from Washington State and 
Congressman Vanik from my State of Ohio--the son of a Cleveland 
butcher--offered an amendment to a trade bill that used the leverage of 
the U.S. market to deny favorable trade status.
  The PRESIDING OFFICER. The time of the Senator has expired.
  Mr. BROWN of Ohio. Mr. President, I ask unanimous consent for 1 
additional minute.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BROWN of Ohio. This was to deny favorable trade status to 
countries that restrict immigration. Jackson-Vanik became antiquated 
more than a decade ago, but it proved that trade can be an instrument 
for improving human rights and the rule of law.
  PNTR now includes the important Magnitsky legislation, which will 
impose travel and financial penalties on officials responsible for 
human rights abuses abroad. I commend Senator Cardin for his leadership 
on this issue, on this important amendment.
  As the administration looks ahead to trade initiatives such as TPP 
and the United States-European Union Trade Agreement, Congress can take 
steps now, new steps, to assure the benefits of expanded trade reach 
workers, reach small manufacturers, not just large corporations. 
Several colleagues and I have proposed legislation updating our 
negotiating objectives on labor, on the environment, on import safety, 
and to restore congressional oversight to future trade negotiations to 
agreements and especially to their enforcement. It is time we practice 
trade so it achieves real results for middle-class families in 
promoting job creation.
  While the Russia PNTR represents a positive step forward, we must 
build on this step to ensure that over the long term, promises made are 
promises kept.
  The PRESIDING OFFICER. The Senator from Arizona.
  Mr. KYL. Mr. President, tomorrow this body will vote to advance 
legislation that will grant permanent normal trade relations with 
Russia and, in so doing, repeal the Cold War-era Jackson-Vanik 
sanctions that denied most-favored nation status to China.
  As part of this comprehensive package, the Senate will also pass the 
so-called Magnitsky bill. This piece of legislation was inspired by a 
young Russian attorney, Sergei Magnitsky, who died in police custody in 
2009 after he was jailed on trumped-up charges for exposing a vast web 
of corruption and tax fraud by some of Russia's most senior officials.
  Sergei's story, extensively reported and documented by human rights 
activists, business leaders, journalists, and others, helped stir a 
bipartisan group of Senators led by our colleague Senator Ben Cardin to 
draft legislation to hold accountable officials from all over the world 
who disregard basic human rights and fail to uphold the rule of law, 
including those responsible for the murder of Sergei Magnitsky.

  Unfortunately, the legislation before us is deficient. While I do not 
intend to make perfection the enemy of the good, this bill falls short 
of the longstanding objective of this body to demonstrate a sustained 
commitment to the long tradition of U.S. leadership in the fight 
against corruption and human rights abuses around the world.
  Regrettably, the House-passed bill deals only with Russian officials. 
Sergei Magnitsky's story could have been lost. It was kept alive by 
impassioned and inspired friends and supporters in Russia.
  But from Pyongyang to Minsk, to Harare, and elsewhere, there are many

[[Page S7435]]

who remain voiceless under despots and strongmen and lack the advocates 
and resources to detail their abuses and seek justice, whether through 
documentary film or newspaper stories.
  That is why the Senate bill went beyond the particular case of Sergei 
Magnitsky. Much like Jackson-Vanik forced Budapest, Warsaw, and Moscow 
to allow citizens to freely emigrate or travel, I believe a global 
approach would help to deter future abuses throughout the world. I am 
puzzled and, frankly, disappointed that our House colleagues did not 
recognize our government needs tools that will allow it to stand up for 
these individuals regardless of where they are in the world.
  Because some have elevated the subject of commerce above human 
rights, there is a view that it is more important to pass PNTR than a 
global Magnitsky bill; thus, we should settle for a Russia-only bill. 
While the Jackson-Vanik sanctions we are about to repeal have obviously 
outlived their usefulness, there is an urgent need for additional tools 
to protect the invisible around the world.
  I hope our collective failure to give voice to their struggles, 
except in Russia, will not discourage these brave men and women, 
whether in Beijing, Tehran or elsewhere, from their continued efforts 
to root out corruption or expose rule of law abuses.
  For now, at least, we address the problem in Russia. While I will not 
be here next year, I hope my colleagues in both the House and Senate 
will seek to uphold U.S. values and to do justice to Sergei Magnitsky 
and his legacy by passing a global bill sometime in the future.
  The PRESIDING OFFICER. The Senator from Maryland.
  Mr. CARDIN. Mr. President, first, let me thank Senator Kyl for his 
leadership on this issue. He knows I share his views on the global 
aspect of the legislation. I wish to thank him for his extraordinary 
leadership as we have been working this issue. We have worked it hard 
to try to get as far as we possibly could. He will be missed in the 
next Congress.
  We will take up this cause again, but I wanted to thank Senator Kyl 
for his commitment on this issue and finding a way that we could 
advance this bill to the floor. I do look forward to the day we will 
make this bill global.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant bill clerk called the roll.
  Mr. REID. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________