[Weekly Compilation of Presidential Documents Volume 30, Number 39 (Monday, October 3, 1994)]
[Pages 1890-1893]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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.
    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.

[[Page 1891]]

    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 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.

[[Page 1892]]

    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.
    Russia is committed to a continuous process of market reform. The 
United States and

[[Page 1893]]

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.