The bill to grant Russia Permanent Normal Trade Relations (PNTR) was introduced in the Senate Tuesday and the head of the Senate Finance Committee promised he will combine it with a bill to sanction Russian human rights violators.
Sen. Max Baucus (D-MT), who is the main sponsor of the PNTR bill and who will shepherd the legislation through his Finance Committee and then on the floor, has agreed to link it to the Magnitsky bill and pledged to pass them both this year. In doing so, Baucus secured the support of Sen. John McCain (R-AZ) for the PNTR bill, which includes a repeal of the 1974 Jackson-Vanik law that was set in place to punish the Soviet Union for refuses to let Jews emigrate.
"It is clear the Magnitsky Act has overwhelming support in the Senate and growing support in the House," Baucus wrote in a letter today to McCain, Sen. Ben Cardin (D-MD), Sen. Joe Lieberman (I-CT), and Sen. Roger Wicker (R-MS). "It is equally clear that many of our colleagues are rallying around the position you have advanced -- that the repeal of Jackson-Vanik for Russia must be accompanied by passage of the Magnitsky Act. I am fully committed to ensuring that the Senate can act on both items this year."
After receiving that letter, McCain joined with Baucus, International Trade Subcommittee Ranking Member John Thune (R-SD), and Foreign Relations Committee Chairman John Kerry (D-MA) in unveiling the PNTR legislation, which they said allows U.S. business to take full advantage of the Russian market when Russia officially joins the WTO later this summer.
"This is an opportunity to double our exports to Russia and create thousands of jobs across every sector of the U.S. economy, all at no cost to the U.S. whatsoever. We give up nothing as part of this process -- not one single tariff reduction -- so it's truly a one-sided benefit for the U.S.," Baucus said in a press release. "Jackson-Vanik served its purpose during the Cold War, but it's a relic of another era that now stands in the way of our farmers, ranchers and businesses pursuing opportunities to grow and create jobs... The clock is ticking for us to move, so we need to act now."
"As I and others have made clear, the extension of Permanent Normal Trade Relations status and the repeal of the Jackson-Vanik amendment for Russia must be accompanied by passage of the Magnitsky Act," McCain said in the release. "I appreciate Senator Baucus's written commitment that he will work for Senate passage of both of these pieces of legislation as soon as possible this year. As we take steps to liberalize U.S. trade with Russia, as we should, we must also maintain our long-standing support for human rights and the fight against corruption in Russia."
The Obama administration has opposed the Magnitsky Act in public while working quietly with Cardin to make changes to the bill just in case its passage can't be avoided. The latest draft version of the bill, circulated by Cardin and obtained by The Cable, seeks to make it more difficult to add names to the list of human rights violators that the bill creates and adds ways for the administration to waive penalties against those violators.
By gaining McCain's support, Baucus has removed a major obstacle to the passage of PNTR for Russia. But now, with McCain on board, Baucus's PNTR bill is linked to the Magnitsky Act in such a way that if the administration opposes or seeks to water down the Magnitsky bill without McCain's agreement, both pieces of legislation could be in jeopardy.
The House Foreign Affairs Committee approved its own version, the Sergei Magnitsky Rule of Law Accountability Act of 2012, last week. The legislation is named for the anti-corruption lawyer who died in a Russian prison, after allegedly being tortured, two years ago. But committee chairwoman Ileana Ros-Lehtinen (R-FL) doesn't support joining Magnitsky with the bill to grant PNTR status to Russia.
"Ros-Lehtinen considers PNTR separate from Magnistky and the issue of Russian human rights, and is opposed to linking Magnitsky to any effort to repeal Jackson-Vanik," her spokesperson Brad Goehner said.