November 28, 2012
www.gfb.org
Vol. 30 No. 48
CONGRESS APPROVES NORMALIZED TRADE RELATIONS WITH RUSSIA On Nov. 16, Congress approved, by a 365-43 vote, permanent normalized trade relations (PNTR) with Russia. The Senate is expected to take up its version of the bill, S. 3406, during the lame duck session. At one time, Russia was the top export destination for U.S. chicken products, and normalized relations are expected to make Russia one of the top destinations for wide variety of agricultural products from the U.S. Georgia Farm Bureau and American Farm Bureau support passage of PNTR with Russia. In a Nov. 16 letter to Georgia's congressional delegation, GFB President Zippy Duvall asked for passage of the bill emphasizing that with PNTR in place the value of Georgia's poultry exports to Russia are projected to double to approximately $46 million annually. “Russia is an important market for Georgia farmers, particularly its poultry producers,” Duvall said. “We're obviously glad the House passed the PNTR bill and hope the Senate will take it up soon.” Russia is the world's 11th-largest economy, with 142 million people and a growing middle class, and has in the past been a key export destination for U.S. agricultural products. Russia was granted accession to the World Trade Organization (WTO) in August, and since that time other countries have been able to take advantage of increased market access to Russia. Congress must pass PNTR for Russia for U.S. producers to enjoy the same trade benefits. “Russia PNTR is a critical step toward ensuring the U.S. benefits from Russia’s accession to the WTO and remains competitive in that market,” said AFBF President Bob Stallman. “U.S. farmers will have more certain and predictable market access as a result of Russia’s commitment not to raise tariffs on any products above the negotiated rates and to apply international food safety standards in a uniform and transparent manner.” Russia's WTO membership will also limit that country's ability to make unsubstantiated complaints against U.S. sanitary standards for chicken products. "This vote brings us one step closer to the day when America’s businesses and workers will enjoy the full benefits of Russia’s World Trade Organization membership, and will no longer be disadvantaged compared to their global competitors,” said U.S. Trade Representative Ron Kirk. All of Georgia's congressmen were supportive of PNTR, which repeals the JacksonVanik Amendment to the Trade Act of 1974. Jackson-Vanik was intended to press the Soviet Union to allow Soviet Jews, prisoners of conscience and victims of religious persecution to leave. After the collapse of the Soviet Union, Russia established freedom of emigration.