US Welcomes Russia as Trade Partner
27 June 2012 USDA Secretary Thomas J. Vilsack testified to the U.S. Senate Committee on Finance about the authorization of permanent normal trade relations with Russia.
“I welcome the opportunity to discuss the benefits to U.S. agriculture of ending the application of the Jackson-Vanik Amendment and authorizing permanent normal trade relations (PNTR) for Russia,” Secretary Vilsack said. “The U.S. Department of Agriculture strongly supports establishing PNTR with Russia and ensuring Russia remains one of our top export markets as it joins the World Trade Organization (WTO).”
According to the Secretary U.S. agricultural experts to Russia were nearly $1.4 billion. The U.S. imported only $25 million of agricultural products from Russia last year.
“PNTR is not a favor to Russia,” Vilsack said. “It is a significant opportunity for America’s farmers, ranchers, and producers. By granting Russia PNTR, the United States will not provide additional market access to our domestic market for Russian agricultural imports. We will simply make permanent the market access treatment we have been extending to Russia on an annual basis since 1992. By not granting Russia PNTR, U.S. farmers, ranchers, and producers will face an uneven playing field.”
Russia’s membership in the WTO has several benefits:
U.S. farmers and exporters will have more certain and predictable market access as a result of Russia’s commitment to avoid raising tariffs on any products above the negotiated rates and to apply non-tariff measures in a uniform and transparent manner; and Russia will be obligated to apply its trade regime in a manner consistent with WTO rules; and Russia will be obligated to follow detailed rules governing transparency in the development of trade policies and measures.; and Russia’s compliance with its obligations will be enforceable through use of the WTO dispute settlement process.
“U.S. agriculture continues to be a bright spot in America’s economy and a driving force behind export growth, job creation, and our nation’s competitiveness,” Vilsack said. “We need to give our farmers, ranchers, and food exporters every tool possible to keep that positive record moving forward. Just a few weeks ago, USDA forecast 2012 farm exports to reach the second-highest level on record, $134.5 billion, making the past three years the strongest collective period of export performance in our nation’s history.
Every $1 billion in farm exports supports roughly 7,800 jobs in the United States. Establishing PNTR with Russia will further enhance opportunities for U.S. agriculture and none of us doubts the ability of U.S. agricultural exporters’ ability to compete.”
Source: USDA, edited by FCI Staff
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