[Congressional Record Volume 158, Number 156 (Thursday, December 6, 2012)]
[Senate]
[Pages S7660-S7663]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
RUSSIA AND MOLDOVA JACKSON-VANIK REPEAL AND SERGEI MAGNITSKY RULE OF
LAW ACCOUNTABILITY ACT OF 2012
The PRESIDING OFFICER. Under the previous order, the Senate proceeds
to consideration of H.R. 6156, which the clerk will report by title.
The bill clerk read as follows:
A bill (H.R. 6156) to authorize the extension of
nondiscriminatory treatment (normal trade relations
treatment) to products of the Russian Federation and Moldova
and to require reports on the compliance of the Russian
Federation with its obligations as a member of the World
Trade Organization, and for other purposes.
The PRESIDING OFFICER. Under the previous order, there will now be 10
minutes of debate equally divided and controlled between the two
leaders or their designees.
The Senator from Montana.
Mr. BAUCUS. Mr. President, we will soon be voting on whether to
establish permanent normal trade relations--otherwise known as PNTR--
with Russia and Moldova and to update human rights legislation on
Russia.
We have to take many difficult votes in this Chamber, but this is not
one of them. In fact, this is a rare opportunity to pass a good bill on
which we all can agree.
PNTR is good for U.S. jobs. Russia is a fast-growing market. When
Russia joined the WTO in August, it opened its markets to the other 155
members of the WTO who have PNTR with Russia. PNTR will give U.S.
farmers, ranchers, businesses, and workers new opportunities in Russia
and new jobs at home.
Our competitors in China, Canada, and Europe are now taking advantage
of these opportunities because they have PNTR with Russia. They already
have it. We are the only WTO member missing out on these opportunities.
If we now pass PNTR, we could level the playing field and compete. If
we compete, we will win. We will sell more beef, we will sell more
aircraft, we will sell more tractors, and we will sell more medical
equipment. Our banks and insurance companies will grow. PNTR will give
our knowledge industries greater protections for their intellectual
property, and our farmers will have new tools to fight unscientific
trade barriers. If we pass PNTR, American exports to Russia are
expected to double in 5 years. This bill has strong enforcement
provisions to help ensure that American farmers, ranchers, businesses,
and exporters get the full benefit of PNTR. This bill has strong human
rights provisions. Senator Cardin's Magnitsky Act punishes human rights
violations in Russia and helps to address the corruption problems
Russia now faces.
In July, the Finance Committee voted unanimously, 24 to 0, in favor
of PNTR legislation. Last month, the House of Representatives passed
the PNTR legislation now before us with 365 ``yes'' votes. Now we need
to act to pass this bill that supports U.S. jobs. Let's take advantage
of this opportunity to take a good vote on a good bill. I urge my
colleagues to vote in favor of giving U.S. workers and businesses a
chance to compete and vote in favor of the PNTR.
I thank my colleague from Utah, Senator Hatch. He is a great person,
and we have worked very closely. The two of us have worked together,
and we made a good team to get this legislation passed.
The PRESIDING OFFICER (Mrs. Hagan). The Senator from Utah.
Mr. HATCH. Madam President, I want to praise the distinguished
chairman of the committee. He has done a wonderful job, and, of course,
he has been a pleasure to work with.
This bill marks an important step forward in our relations with
Russia and Moldova. Once this bill is signed into law, our workers, job
creators, and farmers will be able to take full advantage of Russia and
Moldova's accession to the WTO.
The bill includes strong enforcement provisions to ensure that Russia
lives up to its international trade obligations. Finally, this bill
will help advance human rights and the rule of law in Russia.
Today's vote would not be possible without the combined efforts of
many dedicated public servants. First, I would like to thank the staff
at the Office of the U.S. Trade Representative. Many of them toiled for
years to bring Russia and Moldova into the WTO, often at great personal
sacrifice.
I also would like to take a moment to thank my colleagues for all of
their hard work in helping to craft this bill. An open and transparent
dialogue was critical to our success. And I would particularly like to
again express my appreciation to all the Republican members of the
Finance Committee who worked with me and my staff in good faith to
develop a strong enforcement package which will address many of the
concerns we all have regarding our bilateral trade relations with
Russia.
Finally, I would like to thank my friend and colleague, Senator
Baucus, and his wonderful staff because he and his staff have had a
great willingness to work with us to make sure our concerns were
addressed in the bill. At the conclusion of my remarks I will provide
for the Record a list of names of staff members from both our offices.
The process we undertook in the Finance Committee is emblematic of
how the Finance Committee should work. It is my sincere hope this will
be a model for future legislation. Working together, I am confident we
can continue to develop policies to grow our economy through
international trade and, hopefully, help advance the rule of law around
the world. This is a good package that deserves our strong support. I
urge all of my colleagues to join me in supporting this bill.
I believe we have to do more in the international trade world.
Earlier, due to the efforts of the distinguished chairman, Senator
Baucus, and his staff and my staff, we were able to get the Korean,
Colombian, and Panamanian treaties through. These were steps in the
right direction for all of these years, and to have this happen is
going to be a wonderful thing, I think, for our country and for Russia
itself, and it certainly is going to help us go down the line in doing
what is best for our own trade.
One of the other special things that is in this is it is going to
cause Russia to have to live up to some international trade and
international intellectual property laws. We in this country believe in
obeying those laws, and I have to say Russia, India, and China have
invaded intellectual property in areas they shouldn't have. Hopefully,
this type of agreement, PNTR, will help alleviate that problem.
So I urge my colleagues to join Senator Baucus and I in voting for
this very important bill. Again, I thank staff on both sides for the
wonderful work they have done and the Trade Representative in his
office, as well, for the wonderful work they have done.
I reserve the remainder of my time.
Human Rights Abusers
Mr. MERKLEY. Madam President, we are about to take a momentous step
forward in promoting human rights abroad thanks to my good friend from
Maryland. Here is a bill that promotes a robust trade relationship
while at the same time using this relationship to advance a very just
cause: punishing past human rights abusers and inhibiting would-be
human rights abusers.
Mr. CARDIN. I couldn't agree more with my friend from Oregon. As some
of my colleagues know, I am the original sponsor of Sergei Magnitsky
Rule of Law Accountability Act, the standalone bill that then became
the human rights title in this combined PNTR bill. I am enormously
proud of the work we have done on the bill, and I
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think it has real potential to not only hold people accountable who
have committed past human rights abuses, but also potentially to
prevent future human rights abuses from occurring. Those who are
responsible for gross human rights abuses such as torture or
extrajudicial killings, whether as private citizens or within organs of
the State, now know that we, our markets, and our financial system will
remain closed to them if they do so. These are real material
consequences.
Mr. MERKLEY. I am very glad that my friend from Maryland has drawn
attention to the forward looking provisions in this bill. It is crucial
that while the Secretary of State makes the initial determination as to
who should be on this list of gross human rights abusers, this is not
the end of the story. On the contrary, there is a continuing oversight
process built into the bill, along with requirements for ongoing
updates to the list of human rights abusers. In fact, the chairpersons
and ranking members of appropriate congressional committees may request
a written response from the Secretary of State as to whether a
particular individual has met the threshold required for addition to
this list. So whether a person's human rights are being violated
because he or she is a dissident journalist, or a member of an ethnic
minority group, or LGBT, or simply a citizen exposing wrongdoing, the
perpetrators will now face real risks and real scrutiny that they did
not face before.
Mr. CARDIN. That is exactly right. Those who violate the human rights
of such citizens through torture, extrajudicial killings, or other
gross violations of international human rights will come to our
attention. And I look forward to working with my friend from Oregon to
help maintain this vigilance and oversight in the years to come.
Mr. MERKLEY. As do I.
Ms. COLLINS. Madam President, I rise to speak on the Russia and
Moldova Jackson-Vanik Repeal and Sergei Magnitsky Rule of Law
Accountability Act that is currently before the Senate. As a cosponsor
of Sergei Magnitsky Rule of Law and Accountability Act, I am very
pleased to see this important human rights legislation move forward,
and I want to commend Senators Cardin, McCain, and others who have
worked so hard on this bill for getting us to this point.
The bill that we are considering today would repeal the so-called
Jackson-Vanik amendment with respect to Russia, which my colleagues
know tied trade relations to the right of free emigration, and replace
it with a tough new law to impose sanctions on Russians deemed to have
grossly violated human rights.
The bill is named after Sergei Magnitsky, a 37-year-old lawyer who
died on November 16, 2009, in Matrosskaya Tishina Prison in Moscow. He
was jailed in 2008 after exposing a massive tax fraud by officials of
Russia's Interior Ministry. While in jail, he became ill but was denied
medical treatment; he was brutally beaten and left to die. This bill is
clearly targeted to go after the perpetrators of human rights
violations in Russia, including those involved in the death of Sergei
Magnitsky, and would require the President name and sanction those
individuals, subject to a waiver for national security interests. Those
listed by the President could be denied visas to enter the United
States and have their assets frozen by the U.S. Treasury Department.
Just yesterday the Washington Post ran a large spread detailing the
current state of political affairs in Russia. I want to read an excerpt
from that article:
Since his return to the presidency in March, (President
Vladimir) Putin has relentlessly demonstrated his
determination to quell dissent.
In an apparent attempt to scare off demonstrators, 17
protesters are being prosecuted for their part in a May 6
rally on the eve of Putin's inauguration, accused of
attacking police officers. One has already been sentenced to
4\1/2\ years in prison.
A newly passed law defines treason so broadly that some
Russians are afraid that even associating with foreigners
could put them at peril. The penalties for slander and
violations of rules governing rallies have been toughened. As
of Nov. 21, nongovernmental organizations that receive money
from abroad must register as foreign
agents . . .
. . . One by one, opposition leaders have come under
intense pressure. Alexei Navalny, the anti-corruption
blogger, has been charged with bribery in a recently
resurrected three-year-old case. Sergei Udaltsov, a socialist
leader, has been charged with plotting mass disorder.
One of his associates, Leonid Razvozzhayev, accused Russian
authorities of abducting him in Ukraine, where he was seeking
asylum. On Nov. 22, Russian investigators said they would not
investigate the case because Razvozzhayev had not presented
convincing evidence that he had been spirited out of Ukraine.
In September, Gennady Gudkov, like Putin a former KGB
agent, was stripped of his parliamentary seat after he
aligned himself with protesters.
The article goes on to detail further acts of intimidation by the
Russian Government aimed at voices of dissent. It makes clear that
despite all of the talk of a ``reset'' in U.S.-Russia relations, this
is not a regime that shares our values when it comes to democratic
freedoms and other human rights.
Over the last several weeks, there have been news reports that the
Kremlin has claimed this bill in some way infringes on Russian
sovereignty. That is simply not the case. The bill does not require the
Russian Government to take any action against human rights abusers it
does not want, but it does say that those abusers may not enter the
United States or access our financial system. This bill reaffirms our
values, and makes a clear statement that the United States stands for
dignity, respect, and the rule of law when it comes to internationally
recognized human rights.
Finally, I do want to say a few words about the trade facilitation
aspects of this bill. By repealing Jackson-Vanik with respect to Russia
and Moldova, this bill will ensure that U.S. businesses and their
employees will be able to realize the benefits of Russia's and
Moldova's membership in the World Trade Organization. With respect to
Russia, these benefits include additional market access for U.S.
service providers and civil aircraft; improved intellectual property
enforcement; consistent science-based sanitary and phytosanitary
measures; and new dispute settlement tools to enforce WTO rules.
Last year, Maine exported $14 million worth of goods to Russia,
including $8.1 million worth of aircraft parts and $5 million worth of
cattle. Granting Russia PNTR can help cement this trade relationship by
providing U.S. businesses more certainty that their investments will be
protected. A Peterson Institute for International Economics study
estimates that the volume of U.S. exports of merchandise and services
to Russia could double from $11 billion in 2011 to $22 billion over
about 5 years as a result of granting Russian permanent normal trade
relations, or PNTR.
Additionally, the bill includes strong reporting requirements on
Russia's compliance with its WTO commitments and directs the U.S. Trade
Representative to develop a plan for action on areas where Russia does
not live up to its WTO requirements.
I urge all my colleagues to support this bill.
Mr. JOHANNS. Madam President, I come to the floor today in support of
approving permanent normal trade relations with Russia.
Over the past several years, I have often come to the floor in favor
of free-trade agreements and other efforts to expand market access for
U.S. exports. This legislation is yet another one of those
opportunities. This vote to repeal a 1970s trade law and recognize
Russia as a member of the WTO will result in increased export
opportunities for U.S. manufacturers, farmers, and ranchers. Increased
exports lead to increased job creation.
Russia is the world's ninth largest economy, with a population of 142
million and a growing middle class. Russia is already a significant
trading partner importing over $10 billion annually from the United
States. In just a 5-year period, Nebraska's exports to Russia increased
fourfold. In fact, in 2011 alone, total exports of goods from Nebraska
were valued at $154 million.
I believe we have the opportunity to continue this impressive trend
by recognizing Russia as a WTO member. A vote in favor of this
legislation will level the playing field for U.S. job creators looking
to take advantage of these growing export opportunities. This is
especially true for Nebraska's
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equipment and machinery manufacturers. My State has a reputation for
producing some of the most sophisticated irrigation equipment in the
world.
Acknowledging Russia's membership in the WTO will reduce tariffs on
this technology from 10 percent to 5 percent--allowing U.S.-based
companies to compete more effectively with others around the globe.
Additionally, other agriculture equipment and machinery manufacturers
in Nebraska and elsewhere will see tariffs reduced or eliminated.
Currently, these tariff rates are up to 25 percent. They will
eventually drop to an average well below 10 percent when Russia meets
all of its WTO commitments. This is a big deal beyond any single state
or sector.
Total U.S. agricultural exports to Russia are forecast at more than
$1.4 billion for 2012, and this further opens the doors of opportunity.
Here is another example: As part of the WTO accession process, Russia
is required to lower its tariffs on U.S. beef products to 15 percent.
Additionally, Russia must allow a greater volume of frozen beef
imports. The quota will nearly triple: from approximately 22,000 tons
in 2010 to 60,000 tons. Meat production is a big part of our
agricultural economy--in my home State and in our country--so this is
noteworthy.
Now, our agricultural producers will be the first to tell you that
they don't think Russia always plays fair in the world of exports. They
say Russia sometimes offers unjustifiable reasons to block our
products. The fact is, Russia has a less-than-stellar record on
establishing predictable, science-based import standards. So our
producers have not always had reasonable access to its markets.
As Secretary of Agriculture, I relentlessly negotiated with Russia
and other trading partners to grant the same access to their markets
for our agricultural products as we granted to their products. This
seems fair, right? They should offer us the same access we offer them?
But based on Russia's track record on U.S. meat exports, especially
pork and poultry, I continue to have concerns. That is part of the
reason I have decided we should recognize their membership in the WTO.
The WTO has been an important tool for the United States to level the
playing field for our products in the international trading system.
Russia will be obligated to apply international food safety standards.
This should mean more certainty and predictable market access for U.S.
agricultural products. And these obligations will be enforceable
through the use of WTO dispute settlement mechanisms.
Integrating Russia into a rules-based trading system and providing
the means to enforce those rules will further strengthen the ability of
U.S. businesses to export products to Russia. But this is an area where
we will need to show great vigilance. As Russia implements its trade
commitments, the administration must ensure that Russia does not revert
to its old ways on trade. Further delay in repealing Jackson-Vanik
would only hurt us.
On August 22, Russia formally joined the WTO after a lengthy process.
Over 150 other nations have already taken action and are reaping the
export benefits. The United States has been left in the dust. Until we
act, we cannot enjoy the lowered tariffs, increased market access,
dispute settlement process, and other benefits of Russia's membership
in the WTO. Thus, we should vote to repeal Jackson-Vanik and accept
Russia as a permanent trading partner.
The move ensures that American businesses are not disadvantaged and
losing market share to their competitors. Russia already has access to
the U.S. market, so additional delay on PNTR only hurts our workers and
companies. Delaying action will only result in the delay of job
creation and more lost opportunities for American manufactures,
farmers, and ranchers.
Our efficient export system, including handling, processing and
distribution of our goods and agricultural products, creates millions
of U.S. jobs. At a time when we face some very serious challenges in
our country related to debt, deficit, and unemployment, it makes sense
to unlock this door of opportunity. Thus, I support removing
application of Jackson-Vanik and intend to vote for PNTR with Russia.
This status would help to level the playing field for U.S. exporters.
I encourage my colleagues to consider the economic impacts of this
bill on our Nation's manufactures, farmers, ranchers, and other job
creators, and I look forward to voting to support normalizing trade
with Russia.
Mr. HATCH. Madam President, today I wish to thank my colleagues for
their support of legislation granting permanent normal trade relations
to Russia and Moldova. This legislation allows U.S. businesses to take
full advantage of trade opportunities in Russia and Moldova following
their accession to the World Trade Organization. Legislation
normalizing our trade relations with both these countries has taken
years to complete. It is important to note that, while the WTO
accession process opened the door for U.S. businesses to take greater
advantage of trade with Russia, we have created a number of new
enforcement mechanisms which, in this, will, I very much hope, hold
Russia accountable for meeting their international obligations.
This process and its success would not have been possible without the
leadership our chairman, Senator Baucus. I deeply appreciate his
willingness to work with me to address the many concerns I and our
colleagues on the Finance Committee had with Russia's accession
package. It is truly a pleasure to be working with someone so fully
committed to opening markets and securing new opportunities for U.S.
workers and job creators in the international marketplace. I hope our
work together on this bill will be just the beginning of a long and
fruitful partnership.
I would like to acknowledge a few of the many people who helped make
this a successful process. First, I would like to recognize the efforts
of the U.S. Trade Representative's Office who assisted in the very long
process of assembling the Russia WTO accession. Special recognition
must go to Elizabeth Hafner, Director for Russia and Eurasia; Catherine
Field, Deputy General Counsel for Negotiations, Legislation and
Administrative Law; Cecilia Klein, Senior Director for WTO Accessions;
Stephanie Murphy, Director for Agricultural Affairs; Scott Pietan,
Director for Industry Trade Policy; and Thomas Fine, Director for
Services Trade Negotiations. I would also like to recognize former
members of the USTR Office who dedicated many years to this process,
including Dorothy Dwoskin, Matt Rohde, and Chris Wilson, who all served
as former Assistant United States Trade Representative for the World
Trade Organization and Multilateral Affairs, as well as the current
AUSTR, Mark Linscott.
Senator Baucus staff was instrumental in helping us advance this
process and craft today's bill. I would like to thank them for all of
their efforts. In particular, I would like to acknowledge Russ
Sullivan, the majority staff director of the Finance Committee; chief
international trade counsel Amber Cottle; international trade counsels
Bruce Hirsh and Lisa Pearlman; trade advisors, Chelsea Thomas and Hun
Quach; international trade analyst, Rory Murphy; and their detailee
from Customs and Border Protection, Heather Sykes.
Finally, I would like to recognize my dedicated and hardworking
staff. In particular, I would like to thank the staff director of my
Finance Committee staff, Chris Campbell; my chief international trade
counsel, Everett Eissenstat; international trade counsels Paul DeLaney
and Greg Kalbaugh; our detaliee from Customs and Border protection,
Richard Chovanec; our detailee from the Department of Commerce, Steven
Garrett; and our international trade staff sssistant, Rebecca Nasca.
They worked tirelessly to help prepare this bill for our consideration,
and I am grateful for their hard work and dedication.
We can all be proud of this bill. It provides significant new tools
to battle corruption within Russia while at the same time enabling U.S.
workers and job creators to take full advantage of Russia's membership
in the World Trade Organization. I look forward to President Obama
signing it into law as soon as possible.
The PRESIDING OFFICER. The Senator from Montana.
Mr. BAUCUS. Madam President, I thank the Senator from Utah. He is a
good man. I also thank staff who helped put this bill together. Amber
Cottle, on my side, and Everett
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Eissenstat, who works for Senator Hatch, worked very hard. They lead
very good, trained teams, I might add. They are very talented, able
folks.
I see this too as a vote to help propel us to the next level of trade
expansion. One is the TPP, Trans-Pacific Partnership, which is being
worked on by the United States and other Asian countries. I think it is
a dramatic opportunity for growth.
Second, working with Europe, the potential free-trade agreement with
Europe, there has been a lot of interest in Europe joining the United
States and reducing barriers to trade. It is a great opportunity that
we should take advantage of. Obviously, that raises another question,
which is trade promotion authority. Next year Congress and I will work
to get trade promotion authority passed so we can include these trade
agreements and help American companies and, equally importantly, help
American consumers because American consumers and American workers are,
frankly, helped dramatically by properly negotiated trade agreements
when it is in the best interests of the United States.
I thank the Presiding Officer for all she does too.
I yield the floor.
The PRESIDING OFFICER. Who yields time?
Mr. BAUCUS. Madam President, I yield back the remainder of my time.
Mr. HATCH. I yield back the remainder of our time.
Mr. BAUCUS. I ask for the yeas and nays.
Mr. HATCH. I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second? There appears to
be a sufficient second.
The yeas and nays were ordered.
The bill was ordered to a third reading and was read the third time.
The PRESIDING OFFICER. Under the previous order, the question is on
passage of H.R. 6156.
The yeas and nays have been ordered.
The clerk will call the roll.
The bill clerk called the roll.
Mr. DURBIN. I announce that the Senator from Hawaii (Mr. Inouye), the
Senator from West Virginia (Mr. Rockefeller), and the Senator from
North Dakota (Mr. Conrad) are necessarily absent.
I further announce that, if present and voting, the Senator from
North Dakota (Mr. Conrad) would vote ``aye.''
Mr. KYL. The following Senator is necessarily absent: the Senator
from Illinois (Mr. Kirk).
The PRESIDING OFFICER. Are there any other Senators in the Chamber
desiring to vote?
The result was announced--yeas 92, nays 4, as follows:
[Rollcall Vote No. 223 Leg.]
YEAS--92
Akaka
Alexander
Ayotte
Barrasso
Baucus
Begich
Bennet
Bingaman
Blumenthal
Blunt
Boozman
Boxer
Brown (MA)
Brown (OH)
Burr
Cantwell
Cardin
Carper
Casey
Chambliss
Coats
Coburn
Cochran
Collins
Coons
Corker
Cornyn
Crapo
DeMint
Durbin
Enzi
Feinstein
Franken
Gillibrand
Graham
Grassley
Hagan
Harkin
Hatch
Heller
Hoeven
Hutchison
Inhofe
Isakson
Johanns
Johnson (SD)
Johnson (WI)
Kerry
Klobuchar
Kohl
Kyl
Landrieu
Lautenberg
Leahy
Lee
Lieberman
Lugar
Manchin
McCain
McCaskill
McConnell
Menendez
Merkley
Mikulski
Moran
Murkowski
Murray
Nelson (NE)
Nelson (FL)
Paul
Portman
Pryor
Reid
Risch
Roberts
Rubio
Schumer
Sessions
Shaheen
Shelby
Snowe
Stabenow
Tester
Thune
Toomey
Udall (CO)
Udall (NM)
Vitter
Warner
Webb
Wicker
Wyden
NAYS--4
Levin
Reed
Sanders
Whitehouse
NOT VOTING--4
Conrad
Inouye
Kirk
Rockefeller
The bill (H.R. 6156) was passed.
____________________