[Congressional Record (Bound Edition), Volume 149 (2003), Part 13]
[Senate]
[Pages 17793-17795]
[From the U.S. Government Publishing Office, www.gpo.gov]




      EXTENSION OF NORMAL TRADE RELATIONS TO SERBIA AND MONTENEGRO

  Mr. VOINOVICH. Mr. President, I rise today to express my support for 
Senate Amendment No. 1149, which would grant the President the 
authority to extend normal trade relations to Serbia and Montenegro.

[[Page 17794]]

  As my colleagues may be aware, Serbia and Montenegro is one of just 
four countries that is currently denied normal trade relations, NTR, by 
the United States. Others in that group include North Korea, Cuba and 
Laos. Although there are certainly challenges in Serbia and Montenegro 
that must be addressed, as we discussed during a hearing of the Foreign 
Relations Committee 2 weeks ago, there is no doubt among my colleagues 
that this country no longer belongs in this category of ``bad actors.''
  While the President has the authority to extend normal trade 
relations to most countries, the case of Serbia and Montenegro is 
different. In 1992, Congress revoked most favored nation status for 
Yugoslavia in response to the policies of former Yugoslav dictator 
Slobodan Milosevic, who was supporting nationalist Serbian aggression 
in the conflicts in Croatia and Bosnia.
  The legislation passed in 1992, P.L. 102-420, prohibits the extension 
of normal trade relations to Yugoslavia, now Serbia and Montenegro, 
until certain conditions have been met. The President must certify that 
Serbia and Montenegro has ceased armed conflict with other peoples of 
the former Yugoslavia, agreed to respect the borders of the former 
Yugoslav states, and ended all support to Bosnian Serb forces.
  As written, the law intended to stop Milosevic from aiding Serbian 
forces responsible for brutal atrocities during the 1990s. There is no 
doubt that the situation in Serbia and Montenegro has changed, and that 
the spirit of these conditions has been met. However, some support for 
Bosnian Serb forces is permitted under the Dayton Peace Accords signed 
in 1996. Given the situation on the ground in the early 1990s, the 
legislation enacted in 1992 did not provide the flexibility for this 
situation. As such, a legislative fix is required to permit the 
President to extend NTR to Serbia and Montenegro.
  With Milosevic behind bars at The Hague and the current government 
taking action to promote democratic reforms following the assassination 
of Serbian Prime Minister Zoran Djindjic on March 12, 2003, I believe 
that it is time to take action to extend normal trade relations to 
Serbia and Montenegro. While we should continue to call on Serbia and 
Montenegro to meet its international obligations to apprehend war 
criminals and cooperate with the International Criminal Tribunal for 
the Former Yugoslivia, we should take this step to promote trade, 
economic development, and improved relations between the United States 
and Serbia and Montenegro.
  Many of my colleagues agree. A provision to give the President the 
authority to extend NTR to Serbia and Montenegro is included in S. 671, 
the Miscellaneous Trade and Technical Corrections Act of 2003. While 
this is an appropriate vehicle for this measure, I am frustrated that 
this important piece of legislation is being held up indefinitely in 
the Senate. I submit for the record a letter of June 26, 2003, signed 
by myself and 65 of my colleagues calling for Senate passage of this 
bill.
  As a member of the Senate who pays close attention to developments in 
southeast Europe, I am committed to doing all that I can to make sure 
that this critical piece of legislation is passed during this session 
of Congress, and I am hopeful to work closely with my colleagues to get 
this done as soon as possible.
  I ask unanimous consent that the June 26, 2003 letter be printed in 
the Record.
  There being no objection, the letter was ordered printed in the 
Record, as follows:
                                                    June 26, 2003.
     Hon. Bill Frist,
     Majority Leader,
     U.S. Senate, Washington, DC.
       Dear Majority Leader: We are writing to express our support 
     for quick Senate action on the Miscellaneous Trade and 
     Technical Corrections Act of 2003 (S. 671). The House of 
     Representatives passed similar legislation in the 107th 
     Congress, but the Senate was unable to complete action on it 
     before the Congress adjourned. On March 5, 2003, the House of 
     Representatives again overwhelmingly approved this important 
     legislation. The United States Senate has an opportunity to 
     pass a non-controversial bill that will provide crucial 
     savings and an economic boost to U.S. manufacturers, 
     consumers, and workers. However, this important legislation 
     is stalled awaiting action in the Senate.
       For more than 20 years Congress has regularly utilized the 
     Miscellaneous Tariff bill procedure to move non-controversial 
     and largely technical trade legislation. S. 671 accomplishes 
     three vital measures: (1) it enables eligible U.S. companies 
     to import products duty free if the product is not 
     manufactured domestically; (2) it helps create jobs for 
     American workers by allowing companies to be more competitive 
     and function more cost efficiently; (3) it significantly 
     reduces costs for U.S. consumers. Should the Miscellaneous 
     Trade and Technical Corrections Act of 2003 fail to pass the 
     Senate a second time, any future opportunity for businesses 
     to benefit from this valuable procedure may be jeopardized.
       Failure to enact the duty suspensions in S. 671 has 
     resulted in extraneous costs to U.S. manufacturers--through 
     taxes paid on imports that cannot be purchased domestically--
     of roughly $32 million dollars in just the first five months 
     of this year. Manufacturing in the United States had 
     undergone 33 months of declining employment, and this bill 
     will create immediate benefits to American businesses and 
     will strengthen our economy. We strongly urge you to take the 
     necessary steps to move this legislation without further 
     amendments under normal Senate procedure.
       Thank you for your time and consideration of this matter. 
     Please do not hesitate to contact us should you require 
     additional information regarding this request.
           Sincerely,
         Senators Alexander, Allen, Bayh, Biden, Bingaman, Bond, 
           Breaux, Brownback, Bunning, Campbell, Cantwell, Carper, 
           Chafee, Chambliss, Clinton, Cochran, Coleman, Collins, 
           Conrad, Cornyn, Corzine and Craig.
         Senators Dayton, DeWine, Dodd, Domenici, Durbin, Edwards, 
           Ensign, Enzi, Feinstein, Graham of South Carolina, 
           Hagel, Harkin, Hatch, Hollings, Hutchinson, Inhofe, 
           Inouye, Jeffords, Kennedy, Kerry, Kyl, and Landrieu.
         Senators Lautenberg, Leahy, Lieberman, Lincoln, Lott, 
           Lugar, McCain, Miller, Murkowski, Murray, Nelson of 
           Nebraska, Pryor, Roberts, Santorum, Schumer, Smith, 
           Snowe, Talent, Thomas, Voinovich, Warner, and Wyden.
  Mr. LUGAR. I support Senator Voinovich's efforts to promote normal 
trade relations with Serbia and Montenegro. Serbia and Montenegro is 
one of only a handful of countries that do not have normal trade 
relations with the United States, and the lack of normal trade 
relations subjects Serbia and Montenegro to high tariff rates, making 
it difficult for them to grow their economy.
  While I do not believe that the State Department authorization bill 
is the appropriate vehicle for this important legislation, I share the 
concern of Senator Voinovich and so many other members that the 
miscellaneous tariff reduction legislation, which includes the 
provision granting normal trade relations to Serbia and Montenegro, 
move forward expeditiously.
  This legislation has been held up for six months for reasons 
unrelated to any of the provisions in the legislation. In addition to 
the provision for Serbia and Montenegro, the legislation contains a 
number of tariff eliminations that help U.S. companies and workers, as 
well as three provisions that are important for economic development in 
Africa.
  Recently I joined 65 of my colleagues in signing a letter to Senate 
Majority Leader Frist urging him to bring the legislation up under 
normal Senate procedures. It is my hope that this legislation will pass 
the Senate soon.
  I thank my colleague for raising this important issue, and I pledge 
to work with him on its passage.
  Mr. GRASSLEY. I rise in strong support of granting normal trade 
relations status to Serbia and Montenegro, which was revoked from 
Yugoslavia under U.S. sanctions in 1992. Senator Voinovich submitted an 
amendment to the Department of State Authorization bill to grant normal 
trade relations status to Serbia and Montenegro. However, because this 
matter is within the jurisdiction of the Finance Committee, which I 
chair, I felt it necessary to object to including the provision on that 
piece of legislation.
  Still, I understand Senator's Voinovich's frustration. The Finance 
Committee reported out legislation which would renew normal trade 
relations status for Serbia and Montenegro on March 20, 2003, in the 
Miscellaneous Trade and Technical Corrections Act of

[[Page 17795]]

2003, S. 671. This bill generally passes each year by unanimous consent 
in the Senate.
  Unfortunately, the Miscellaneous Tariff Bill has been held up for 
months by the insistence of some Senators on including an unrelated, 
controversial provision to the bill. This provision cannot be included 
in the bill because other Senators will object. By holding up this 
important piece of legislation, U.S. manufacturers and workers whose 
businesses rely on duty suspensions are being harmed. They are losing 
money, and facing the possibility of laying off workers every day that 
we fail to act.
  This is important legislation, and I know that I am not the only one 
who thinks so. Sixty-six of my colleagues sent a letter to the Majority 
Leader, urging him to bring up S. 671 for a vote. I support their 
efforts, and hope this vitally important legislation will move as soon 
as possible. I would like to thank Senator Voinovich for raising the 
issue, and ask that all my colleagues recognize not only the 
importance, but the urgency of this legislation.
  I will submit for the record a letter in support for NTR for Serbia 
and Montenegro, from the America's Development Foundation, ADF, a 
nonprofit organization assisting the international development of 
democracy. The ADF is working in Serbia to promote economic and social 
development through a program called Community Revitalization through 
Democratic Action, or CRDA.
  I will continue to try and pass normal trade relations for Serbia and 
Montenegro and appreciate my colleague's strong support and advocacy on 
the issue.
  I ask unanimous consent that the letter to which I referred be 
printed in the Record.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:


                             America's Development Foundation,

                                     Alexandria, VA, July 3, 2003.
     Senator Charles E. Grassley,
     Chairman, Committee on Finance, Dirksen Senate Office 
         Building, Washington, DC.
       Dear Chairman Grassley: Thank you for your leadership in 
     passing S. 671 out of the Senate Finance Committee. As you 
     are well aware this measure contains provisions that will 
     grant historic Normal Trade Relations (NTR) status to Serbia 
     & Montenegro.
       America's Development Foundation (ADF) is a U.S. nonprofit 
     private voluntary organization dedicated to the international 
     development of democracy. We are very interested in the 
     economic and social development of Serbia & Montenegro. Among 
     our many activities around the world, we are now engaged in 
     revitalizing 70 communities located in 12 municipalities 
     comprising more than a million people in the Vojvodina region 
     of Serbia. Our broad portfolio of work is supported by the 
     United States Agency for International Development (USAID) 
     and includes providing assistance for income generating 
     activities for farmers and small and medium enterprises.
       ADF is strongly supportive of the Bush Administration and 
     your Congressional leadership in highlighting the clear 
     linkages between development and trade. The economic growth 
     supported by free trade and open markets creates new jobs and 
     increased income for many people. From our direct/experience 
     working in Serbia, ADF sees a wonderful potential in further 
     advancing such linkages. NTR for Serbia & Montenegro will 
     promote its economic and social development and enhance the 
     prospects for strengthening democracy. Perhaps most 
     importantly, NTR for Serbia & Montenegro is in our nation's 
     direct national interests. Open markets and increased 
     investment will result not only in benefiting the people of 
     Serbia & Montenegro but also U.S. investment, trade and other 
     important strategic interests.
       Thank you for championing S. 671. ADF looks forward to 
     quick passage of the bill by the U.S. Senate.
           Sincerely,
                                                   Michael Miller,
     President.

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