Statement of the Hon. Christopher Cox, a Representative in Congress from the State of California

Testimony Before the Subcommittee on Trade
of the House Committee on Ways and Means

Hearing to Explore Permanent Normal Trade Relations for Russia

April 11, 2002

Introduction

Thank you, Mr. Chairman.  I am honored to testify before the Committee on improving relations between the United States and Russia.

As the members of the Committee are aware, Russia remains subject to Title IV of the Trade Act of 1974, including the Jackson-Vanik freedom of emigration provisions.  These provisions focused specifically on Communist systems, prototypically the Soviet Union, and their purpose was to deny normal trade relations and other economic incentives to countries that denied its citizens the right of emigration.

Russia’s continuing coverage under Jackson Vanik requires an annual presidential determination and report to Congress that Russia is not violating freedom of emigration criteria.  Since the collapse of the Soviet Union, these have become routine, because Russia today enjoys freedom of emigration.

In 1992, following the collapse of the Soviet Union, Russia was first extended normal trade relations under a waiver from the Jackson-Vanik emigration requirements.  A waiver was again extended to Russia in 1993.  Since 1994, the President has repeatedly found Russia in full compliance with the Jackson-Vanik emigration criteria.  In recent months, the Bush Administration has repeatedly expressed its desire to repeal this Soviet-era restriction on our relations with Russia.

Today, Russia’s long record of compliance with the emigration provisions and perfect string of Jackson-Vanik waivers since the collapse of the Soviet Union indicates that it is time to terminate the application of Jackson-Vanik.

The Speaker’s Advisory Group on Russia

As you know, I had the honor of chairing the Speaker’s Advisory Group on Russia.  In March 2000, as Russia prepared for the presidential election that would formally establish the successor to the Yeltsin Administration, the Speaker of the House tasked the leadership of six committees of the House of Representatives to assess the results of U.S. policy toward Russia during the Yeltsin years.

Along with my colleagues, International Relations Committee Chairman Ben Gilman, Intelligence Committee Chairman Porter Goss, Banking Committee Chairman Jim Leach, the late Armed Services Committee Chairman Floyd Spence, Appropriations Committee Chairman Bill Young, Conference Vice Chair Tillie Fowler, Joint Economic Committee Vice Chairman Jim Saxton, Monetary Policy Subcommittee Chairman Spencer Bachus, Foreign Operations Subcommittee Chairman Sonny Callahan, Military Research and Development Subcommittee Chairman Curt Weldon, and House Russian Leadership Program Co-Chairman Roger Wicker, we spent six months examining the past decade of U.S.-Russian relations.  In September 2000, we released our findings and recommendations. 

The Advisory Group recommended that the U.S. government repeal Cold War-era laws that impede relations with Russia. We recommended that the committees of jurisdiction in the U.S. Congress carefully examine all aspects of the current statutory framework governing U.S. relations with Russia, with the intention of removing outdated Cold War-era restrictions on full and normal U.S.-Russian relations.  Although work in this area has been accomplished by the 1993 Friendship Act, which sought to remove many of the legal impediments to normal relations with Russia, we found that Congress had not completed the process of amending the remaining statutory leftovers of the Cold War.

The Advisory Group also recommended the promotion of Russia’s integration into the world economy.  Today, many Russian policies directly or indirectly discourage foreign investment and international trade. The United States should encourage Russia to adopt and enforce laws and policies that will allow her to enjoy the benefits of participation in the international marketplace. The United States should work with Russia for the adoption and enforcement of laws and policies that would enable Russia to accede to the World Trade Organization under appropriate commercial terms.

The legislation before you today, which will repeal Jackson-Vanik for Russia, is a direct response to those recommendations of the Speaker’s Advisory Group on Russia.

Bush Administration Support

Since taking office, President Bush has made the improvement of bilateral economic relations with Russia an important tenet of his administration’s foreign policy.  During last November’s meeting with Russian President Vladimir Putin, President Bush stated that the U.S. is committed to “creating the conditions that will enhance our trade and investment relations and help Russia reach its economic potential.”  He added that “we will work together to build confidence in the climate for trade and investment between our two countries,” including “working together in an effort to accelerate Russia’s WTO accession negotiations.” 

To accomplish the President’s goals, he has asked for the immediate repeal of Jackson-Vanik for Russia.  In November 2001, the White House released a fact sheet announcing that the Administration had begun consultations with Congress and other interested groups on the possibility of graduating Russia from Jackson-Vanik.  The result was your introduction, Mr. Chairman, of the legislation we are considering today.

In a House Leadership meeting with the President yesterday, he repeated to me and to the others present his hope that Congress would now remove this Cold War era law, and allow U.S.-Russia relations to move forward on a new path as well as reduce the barriers for Russia’s inclusion in international organizations.

Success of Jackson-Vanik

During the past 28 years, Jackson-Vanik has proven to be a valuable and successful tool in ensuring that human rights, specifically freedom of emigration, has been respected.  The law was an extraordinary success in securing freedom of emigration in the former Soviet Union.  Since 1975, 573,000 refugees -- many of them Jews, evangelical Christians and Catholics -- from areas of the former Soviet Union have been resettled in the United States alone.  The Russian Jewish community in the United States today numbers between 750,000 and one million, and some estimates are twice as high.  An estimated one million more Jews emigrated to Israel during that time. In today’s Russia, the complete freedom of emigration is unquestioned.  For fiscal year 2001, 3,875 refugees from Russia were resettled.

Conclusion

This legislation is important both for its impact on the future development of U.S.-Russian relations and on the development of democracy in Russia.  If sanctions are appropriate when the right to emigrate freely is curtailed, then it is equally true that there should be recognition for the consistent respect of that right. 

As we have seen throughout Latin America, Eastern Europe, and Asia, a growing respect for human rights has empowered citizens to demand their governments be accountable to the rule of law.  Repeal of Jackson-Vanik for Russia is an important step to signaling U.S. support for Russia’s democratic and free market institutions.

Thank you, Mr. Chairman, for the opportunity to express my views on this important issue.