💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

U.S. Russian energy import bill stops short of revoking trade status

Published 03/09/2022, 11:54 AM
Updated 03/09/2022, 11:56 AM
© Reuters. FILE PHOTO: The U.S. House of Representatives ahead of President Joe Biden's first State of the Union Address in the U.S. Capitol in Washington, DC, U.S, March 1, 2022.  Jim Lo Scalzo/Pool via REUTERS

WASHINGTON (Reuters) - A bill to ban Russian energy imports and review that country's status at the World Trade Organization has excluded a proposal to revoke its permanent normal trade relations (PNTR) status, according to the text of the bill slated for a U.S. House of Representatives vote later on Wednesday.

Revoking Russia's PNTR status would allow Washington to raise tariffs on Russian imports above levels pledged to all World Trade Organization members. The move had been proposed on Monday by the bipartisan leaders of the House Ways and Means Committee and Senate Finance Committee as a way to punish Russia for its invasion of Ukraine.

But the text of the "Suspending Energy Imports from Russia Act," released early on Wednesday, includes no reference to PNTR or tariffs beyond a ban on Russian energy imports.

Instead, it directs the U.S. Trade Representative to "use the voice and influence of the United States at the WTO to --

1) condemn the recent aggression in Ukraine;

2) encourage other WTO members to suspend trade concessions to the Russian Federation; and

3) consider further steps with the view to suspend the Russian Federation’s participation in the WTO."

A spokesman for the U.S. Trade Representative's office could not immediately be reached for comment on why the PNTR provision was excluded or what steps USTR Katherine Tai will take to implement the legislation.

Options to suspend Russia's WTO are limited, as the organization does not have a specific provision for expelling member countries and its consensus-based decision-making structure is not well suited to making such a major change.

© Reuters. FILE PHOTO: The U.S. House of Representatives ahead of President Joe Biden's first State of the Union Address in the U.S. Capitol in Washington, DC, U.S, March 1, 2022.  Jim Lo Scalzo/Pool via REUTERS

On Tuesday, President Joe Biden issued an immediate ban on Russian oil and energy imports.

Russia has called its action in Ukraine a "special operation."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.