[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
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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.
____________________