    [Public Papers of the Presidents of the United States: William J. Clinton (1994, Book II)]
    [September 28, 1994]
    [Pages 1650-1653]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Partnership for Economic Progress: Joint Statement on Principles and
    Objectives for the Development of Trade, Economic Cooperation, and
    Investment
    September 28, 1994

    The United States of America and the Russian Federation,
        Believing that strong economic ties and cooperation can contribute
    significantly to the building of strong, friendly relations and
    acceleration of the development of free markets, economic growth and job
    creation in both countries,
        Based on continuing progress by the Russian Federation in steps to
    create a market economy and more open commercial and investment
    environment, including the necessary legal and financial conditions,
        Desiring to build a strategic economic partnership between the two
    countries and accelerate and give vibrancy to the efforts of their
    private and commercial sectors to develop commercial projects on the
    basis of trade, joint ventures, and foreign direct investment,
        Noting the positive trends and developments in the legal,
    commercial, and financial frameworks for bilateral trade, economic
    cooperation and investment,
        Positively assessing steps by the Russian Federation in creating a
    market economy, and by the United States of America in extending
    technical assistance to support, on a bilateral and multilateral basis,
    market reforms in the Russian Federation and the development of
    bilateral commercial relations,
        Noting the complementarity of the American and Russian economics for
    the development of key economic sectors and the significant potential
    for development of mutually beneficial commercial ventures between the
    two countries,
        Reaffirming their commitment to the purposes and principles of the
    Charter for American-Russian Partnership and Friendship of June 17,
    1992, and the principles of the Vancouver (April 1993) and Moscow
    (January 1994) Declarations by the presidents of both countries,
        Noting the important role of the joint Commission for Economic and
    Technological Cooperation in creating the conditions for strengthening
    U.S.-Russian economic cooperation,
        Have adopted the following Principles and Objectives for the
    development of trade, economic cooperation and investment relations:

    Trade

        The United States of America and the Russian Federation seek to
    establish a normal trade relationship as quickly as feasible, to support
    a rapid increase in bilateral commerce. Great value is placed on the
    Agreement on Trade Relations in force between the United States of
    America and the Russian Federation and both countries are committed to
    carry out fully the provisions of this Agreement.

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        The United States recognizes the significance of the removal of
    Russia from application of the provisions of Title IV of the U.S. Trade
    Act of 1974 (the Jackson-Vanik Amendment). The U.S. Administration has
    made a positive determination that Russia is in full compliance with
    Title IV criteria and will consult with the U.S. Congress at an early
    date concerning legislation to remove Russia from application of Title
    IV.
        Both countries welcome the work of the U.S.-Russia Joint Commission
    for Economic and Technological Cooperation and its various bilateral
    committees, including the U.S.-Russia Intergovernmental Business
    Development Committee to contribute to the expansion of bilateral trade
    and investment and will utilize the Business Development Committee as a
    means for frequent consultation on the means of improving the
    environment for commercial growth. Each side will use its best efforts
    to implement measures supporting trade expansion and to remove obstacles
    to trade development.
        The United States and Russia note that as of September 30, 1993, the
    United States has extended to qualifying Russian exports eligibility for
    duty-free entrance into the United States under the U.S. Generalized
    System of Preferences program covering 4,400 products, and that during
    1994 U.S. technical experts will provide information to Russian
    officials and entrepreneurs on effective utilization of the GSP program.
        The United States expects to extend the benefits of the GSP program
    to Russia for so long as its program authority and Russian eligibility
    under authorizing legislation permit. Russia will review the possibility
    of removing certain tariff barriers impeding development of trade.
        Both countries will facilitate trade and investment expansion
    through the dissemination of reliable and comprehensive economic data,
    transparent and stable commercial laws and regulations, and active
    promotion of business contacts and facilitating access to commercial
    market information. Noting the provisions of the U.S.-Russia Agreement
    on Trade Relations concerning transparency of new laws and regulations,
    the United States believes it would be useful if Russia adopted
    procedures for public comment on proposed changes to commercial laws and
    regulations, as well as advance notification and publication of proposed
    changes. Until such procedures are in place, both countries through the
    Business Development Committee will facilitate the timely exchange of
    information on legislation and regulations as they are adopted.
        Market Access. Each country desires to provide liberal access to its
    market for the other's goods and services. They are committed to avoid
    trade frictions and facilitate access consistent with fair trade
    practices and their respective trade laws.
        The U.S.-Russia Business Development Committee is an important forum
    for discussions of current and potential market access issues and for
    the development of recommended policies and regulations which would
    support expanded trade and investment.
        Recognizing that Russia is an economy in transition to a free
    market, the United States will give priority attention to the special
    market access problems Russia faces as it continues its economic
    transition. The U.S. Administration will consult with the U.S. Congress
    on this subject.
        Market access issues will be addressed from a broader bilateral
    perspective through the Business Development Committee's Market Access
    Working Group. This group will consider initiatives designed to reduce
    barriers to mutual market access, taking into account the unique
    problems Russia faces as an economy in transition.
        The United States and Russia will immediately work to address
    Russia's concerns with U.S. antidumping laws, beginning with procedures
    to disseminate information designed to prevent unfair trade and
    procedures designed to facilitate participation in antidumping
    proceedings if unfair trade occurs. They agree to discuss changing
    market trends resulting from Russia's transition to a market economy and
    integration into the global trading system.
        Both countries recognize that tariff-reducing measures, consistent
    with GATT/WTO principles, will provide an important stimulus to
    bilateral trade and investment. They also intend to review and seek
    prompt removal of technical barriers to trade through both bilateral
    cooperation and unilateral measures. The reduction of such tariff and
    technical barriers to trade will lead to increased investment and
    promote the development and growth of economically healthy, globally
    competitive domestic industries.
        Both countries consider cooperation in international standardization
    and openness of conformity assessment indispensable to eliminating or
    avoiding the creation of technical barriers

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    to trade and intend to proceed vigorously with the program of work
    agreed upon in the Joint Communique on Cooperation in Conformity
    Assessment issued in Moscow on December 16, 1993, at the conclusion of
    the meetings of the Joint Commission for Economic and Technological
    Cooperation led by Vice President Albert Gore and Prime Minister Victor
    Chernomyrdin. They consider progress in product certification, testing
    and quality assurance to be of priority for telecommunications
    equipment, drugs, pharmaceuticals and medical devices.
        The United States looks forward to the implementation by Russia of a
    trade regime that would speed its accession to the GATT/WTO and open the
    way to application of GATT/WTO principles in their bilateral trade. The
    United States supports Russia's accession to the GATT/WTO and expresses
    its readiness to extend appropriate technical assistance and to consult
    concerning the process of accession.
        Intellectual Property Rights. The United States and Russia look
    forward to continued cooperation under the working group on intellectual
    property matters, established by the Agreement on Trade Relations
    between the United States of America and the Russian Federation.
        The United States recognizes Russia's considerable progress in
    enacting intellectual property rights legislation. Both sides consider
    effective enforcement of those laws to be important. In particular, the
    United States considers protection for pharmaceuticals, computer
    software, sound recordings, books, and integrated circuit layout designs
    to be of primary importance. The U.S. side looks forward to Russia's
    rapid accession to the Berne Convention on the Protection of Literary
    and Artistic Works.
        Closer Economic Cooperation and Commercial Partnership. The two
    countries share the view that their two economies are complementary in
    many ways and that the extent of economic cooperation currently existing
    between the two is only a small fraction of its potential. They agree
    that the two economies could benefit strongly from the elimination of
    trade and commercial barriers between them.
        The United States and Russia concur that Russia must take additional
    market-oriented steps for trade and commercial cooperation to reach its
    potential. Both agree that closer economic cooperation will have a
    beneficial effect on bolstering the continued market transformation of
    Russia's economy.
        The elimination of barriers to trade and investment and increased
    commercial cooperation will emphasize the totally changed nature of the
    relationship between the two countries to one of strategic economic
    partnership.
        In this context, the United States and Russia at an appropriate time
    could consider future arrangements to enhance their bilateral economic
    relationship. They also will work through the Business Development
    Committee forum to identify measures for achieving closer commercial
    integration.

    Investment and Finance

        The two sides note favorably the June 1992 Treaty on the
    Encouragement and Reciprocal Protection of Investment that has been
    signed by the heads of both States and that has been approved by the
    U.S. Senate. They agree that ratification by the Russian Federation
    Federal Assembly and its prompt entry into force is a critical goal to
    be achieved in improving the Russian investment environment for American
    companies.
        They also agree that the steps taken by Russia pursuant to President
    Yeltsin's Decree 1466 of September 27, 1993 form the basis for moving
    forward with administrative and legislative actions to further improve
    the investment climate in Russia. They share the opinion that bilateral
    discussions that include the business communities of both countries will
    be the most rapid way of identifying the precise actions that are
    needed.
        Support for Reform. The United States reaffirms its support for
    Russia's efforts to establish a market economy and offers continuing
    active assistance to the process of reform.
        In particular, the United States welcomes Russia's intention to
    establish new incentives, consistent with international standards and
    agreements including the GATT/WTO, to attract foreign direct investment,
    to continue its highly successful privatization program, to take
    additional steps to liberalize the economy and foreign trade by freeing
    prices and opening up its markets to the world at large, and to enforce
    the right of private land ownership.
        Russia acknowledges and welcomes the support of the United States
    for its reform efforts and will continue to cooperate closely to
    identify ways in which the two nations can work together to expedite
    Russia's transformation into a market system.

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        Russia is committed to a continuous process of market reform. The
    United States and Russia recognize that trade and investment activities
    between the two countries, based on private sector commerce, will
    provide the foundations for sustained growth now and in the future. Such
    trade and investment activities will help both nations acquire new
    technology and know-how and the resulting capital flows will be an
    important source of financing for both nations that will support reform,
    create new jobs and improve the quality of life in both countries.
        The United States and Russia agree that the development of a climate
    hospitable toward foreign direct investment could result in tens of
    billions of dollars of new direct investment in Russia, and could
    generate a much closer commercial relationship between the business
    communities of both countries. The United States and Russia will work
    through the Business Development Committee to identify and eliminate
    barriers to investment, including sector-specific issues.
        ``Commercial Partnership Program''. The United States and Russia
    undertake to establish a ``Commercial Partnership Program'' to enhance
    existing bilateral and multilateral agreements by providing detailed
    guidelines and milestones based on the principles outlined in this
    document for achieving closer commercial cooperation. The Commercial
    Partnership Program will be developed in several stages, based on
    continuing progress in political and economic reforms by Russia and in
    the flow of commerce between the two nations. Each stage will involve
    implementation and expansion of specific programs to encourage company-
    to-company cooperation and expanded trade and investment. The Business
    Development Committee will coordinate the identification and
    implementation of specific steps toward this goal.
        Industry Cooperation. The two countries believe that private sector
    efforts are vital to the success of Russia's creation of a market
    economy. Industry cooperation in key sectors will provide the necessary
    capital and business expertise to support economic development. Economic
    competition generated through private sector cooperation will benefit
    both countries by improving product quality and manufacturing efficiency
    and by creating jobs.
        The United States and Russia agree that investment and trade in the
    oil and gas sector provide Russia with an opportunity to attract U.S.
    capital and technology on a vast scale, far beyond resources available
    from foreign assistance. They understand the desirability of taking
    earliest possible steps in Russia to attract foreign capital and to
    provide an attractive investment climate, including realization of
    production sharing agreements, stable and reasonable tax and export
    regimes, and equal and predictable access to pipelines, in line with the
    European Energy Charter Treaty.
        The United States and Russia declare that investment and trade in
    other industry sectors, as well, are essential to overall economic
    development. Agribusiness and food processing, aerospace, mining,
    medical devices and pharmaceuticals, telecommunications, transportation,
    environmental equipment, housing, and defense conversion are priority
    sectors for cooperation. Both countries will consider appropriate
    measures for supporting joint ventures in designated sectors.

    Note: An original was not available for verification of the content of
    this statement.