US exports seen at risk as Russia enters WTO

U.S. agricultural, aircraft and other exports to Russia could suffer unless Congress passes legislation soon recognizing the former Cold War enemy is now a fellow member of the World Trade Organization, trade experts and business groups said.   

After 18 years of on-and-off negotiations, Moscow met the requirements set by the United States and other countries for joining the WTO and became its newest member on Wednesday.   

The Peterson Institute for International Economics estimates that U.S. exports to Russia could double over the next five years to $11 billion as a result of the tariff cuts and other reforms Moscow made to join the WTO.   

But in the short term, U.S. exports to Russia are at risk because Congress has not yet lifted a 1974 provision known as the Jackson-Vanik amendment that stands in the way of "permanent normal trade relations" (PNTR) with Moscow.   

"In order for American manufacturers, workers, service providers, farmers and ranchers to take full advantage of Russia's WTO membership, Congress must act to terminate Jackson-Vanik and authorize permanent normal trade relations for Russia," U.S. Trade Representative Ron Kirk said in a statement congratulating Russia on its entry into the WTO.   

Jackson-Vanik tied normal U.S. tariff rates to the rights of Jews in the former Soviet Union to emigrate freely.   

The White House has deemed Russia to be compliance with the provision for nearly 20 years. But it remains on the books and is at odds with WTO rules requiring members to provide each other normal trade relations on an unconditional basis.   

REUTERS