| Abstract: |
The potential benefits to the US economy from Russia's accession to the World
Trade Organization (WTO) are substantial but the United States can enjoy them
only if it grants Russia permanent normal trade relations (PNTR) status—by
repealing application to Russia of the Jackson-Vanik Amendment, which bars
favorable trade relations with countries that restrict emigration. While
congressional approval is not necessary for completion of Russian accession to
the WTO, Congress needs to grant Russia PNTR to make it possible for US
companies to take full advantage of the best available conditions of access to
the Russian market for both trade and investment. Åslund and Hufbauer
calculate that US exports to Russia could double over the next five years—from
$9 billion in 2010 to $19 billion—adding jobs in the services, agriculture,
manufacturing, and high-tech sectors. More generally, with Russia's accession
to the WTO and the United States granting PNTR to Russia, US-Russia commercial
relations will be set on a sounder and friendlier footing, facilitating
cooperation on national security and political issues. By strengthening the
rules-based global trading system, WTO accession and PNTR will discourage
Russia from undertaking protectionist measures. President Barack Obama has
stated that he looks forward to working with Congress "to end the application
of the Jackson-Vanik amendment to Russia in order to ensure that American
firms and American exporters will enjoy the same benefits of Russian WTO
membership as their international competitors." It is imperative that Congress
respond constructively in the same spirit of bipartisanship that led to the
successful approval earlier this year of the Colombia, Korea, and Panama trade
accords. Political wrangling, misjudgment, and miscalculations must not be
allowed to cost the United States a significant new source of economic growth
and cooperation in the future. |