🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

US exports to Russia to rise on WTO entry - report

Published 04/15/2011, 08:30 AM
Updated 04/15/2011, 08:32 AM
NG
-
PMCN
-

* A variety of U.S. exports should benefit, report says

* Sales may be lost if U.S. Congress stresses human rights

* Administration wants 'adult conversation' with Congress

By Doug Palmer

WASHINGTON, April 15 (Reuters) - U.S. goods exports to Russia could double to $19 billion after Russia joins the World Trade Organization, according to a report urging the U.S. Congress to permanently normalize trade with the former Cold War enemy.

But U.S. exporters could lose sales in Russia if Congress refuses to grant "permanent normal trade relations" (PNTR) to keep pressure on Moscow to improve its human rights record or address other concerns, the Peterson Institute for International Economics said on Friday in a policy brief.

Consequently, "the U.S. congressional vote on extending permanent normal trade relations could set the tone for economic relations between the United States and Russia for the next decade to come," the report said.

With Russia hoping to finish its accession process this year, U.S. lawmakers could soon face a vote on the issue. The Obama administration has made approval of PNTR one of its trade priorities for 2011.

President Barack Obama, as part of his efforts to improve relations with Moscow, has pushed Russia to finish its bid to join the WTO after more than 17 years of negotiation, and he is pressing Congress to permanently normalize trade between the two countries.

That would require freeing Russia from the provisions of the so-called Jackson-Vanik amendment, a 1974 law that tied normal trade relations with Communist countries to rights of religious minorities to emigrate freely.

Russia's WTO entry would create new export opportunities for U.S. poultry, pork and beef as well as other food goods such as wine, fruits and nuts, the report said.

U.S. drug and medical device manufacturers also should profit from Russia's membership in the WTO, as should exporters of heavy industrial machinery such as tractors and oil and natural gas field equipment, the report said.

U.S. services companies in sectors ranging from telecommunications to finance to express delivery also should see increased business in Russia, it said.

The United States established permanent normal trade relations with China and Vietnam as those countries joined the WTO. In the case of China, the measure followed years of debate under the Clinton administration about China's human rights record.

WTO RULE

Refusing to grant permanent normal trade relations to Russia would put the United States at odds with a WTO rule requiring members to "unconditionally" provide all other members the same market access.

Russia could respond by denying U.S. farmers and companies the market-opening benefits of its accession to WTO, putting them at a disadvantage to European, Chinese, and other competitors eager for new export opportunities.

Many members of Congress would like to see Russia join the WTO but are wary of permanently normalizing trade relations until they see the final details of the deal.

Concerns about Moscow's record on human rights, its repression of political dissent and its commitment to democracy are also expected to figure into the debate.

U.S. Trade Representative Ron Kirk said on Wednesday the administration understands those concerns but wants to have an "adult conversation" with lawmakers about the consequences of not approving permanent normal trade relations. (Reporting by Doug Palmer; editing by Mohammad Zargham)

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.