On Wednesday, Russia will finally join the World Trade Organization
after 18 years of negotiations concluded last December. Russia will
abolish protectionist regulations, reform burdensome institutions,
subject itself to international scrutiny, and open its market to
products and services from all 150-plus members of the WTO.
Well, except for those from the United States, because Congress failed to pass one uncontroversial piece of legislation prior to the August recess.
Congress has had eight months to repeal the obsolete law that prevents U.S. consumers and businesses from enjoying the benefits of Russia’s WTO membership. The 1974 Jackson-Vanik Amendment effectively made trade with the Soviet Union conditional on certification by the president that the communist country did not place undue restrictions on Jewish emigration. This law would be a flagrant violation of WTO rules requiring unconditional most-favored-nation treatment among all members.
No one in Congress advocates keeping Jackson-Vanik in place, but its repeal has been repeatedly delayed by political concerns that have no bearing on the benefits the U.S. will gain from open trade with Russia. The Peterson Institute for International Economics has estimated that increased access to Russia’s market due to its entry into the WTO will increase annual U.S. exports to Russia to $22 billion — double the current $11 billion — within five years.
Well, except for those from the United States, because Congress failed to pass one uncontroversial piece of legislation prior to the August recess.
Congress has had eight months to repeal the obsolete law that prevents U.S. consumers and businesses from enjoying the benefits of Russia’s WTO membership. The 1974 Jackson-Vanik Amendment effectively made trade with the Soviet Union conditional on certification by the president that the communist country did not place undue restrictions on Jewish emigration. This law would be a flagrant violation of WTO rules requiring unconditional most-favored-nation treatment among all members.
No one in Congress advocates keeping Jackson-Vanik in place, but its repeal has been repeatedly delayed by political concerns that have no bearing on the benefits the U.S. will gain from open trade with Russia. The Peterson Institute for International Economics has estimated that increased access to Russia’s market due to its entry into the WTO will increase annual U.S. exports to Russia to $22 billion — double the current $11 billion — within five years.
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