[Congressional Record (Bound Edition), Volume 158 (2012), Part 12]
[Senate]
[Pages 16560-16563]
[From the U.S. 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

[[Page 16561]]

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 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

[[Page 16562]]

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 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

[[Page 16563]]

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 detailee from Customs and Border protection, 
Richard Chovanec; our detailee from the Department of Commerce, Steven 
Garrett; and our international trade staff assistant, 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 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.

                          ____________________