Obama Signs Off on Permanent Normal Trade Relations (PNTR) for Russia
Opens New Export Opportunities for U.S. Businesses
The Russia and Moldova Jackson-Vanik Repeal Act (H.R. 6156) was recently approved by President Obama. The Act allows American companies to receive the full benefits of Russia’s recent accession to the World Trade Organization (WTO) by waving an outdated, Cold War-era amendment that restricted trade. In December, the U.S. Senate passed legislation (92-4 vote) to normalize trade relations with Russia; the House of Representatives voiced similarly overwhelming support (365-43 vote) on November 16.
Rep. Dave Camp (R-Mich.) introduced H.R. 6156, which will allow U.S. businesses to benefit from lower tariffs following Russia’s recent WTO ascension. This legislation will provide the impetus to double U.S. exports to Russia over the next five years. The establishment of PNTR with Russia is a major victory for U.S. goods and services providers who will benefit from equal access to the world’s ninth largest market.
Russia formally joined the World Trade Organization (WTO) in August and has since implemented a host of economic reforms to further open their market to foreign investment. With passage of PNTR, the U.S. will stimulate job creation and economic growth and level the playing field with the many WTO nations already enjoying unrestricted trade with Russia.
January 8, 2013