Opening Statement of the Hon. Philip M. Crane, a Representative in Congress from the State of Illinois,
and Chairman, Subcommittee on Trade

Hearing to Explore Permanent Normal Trade Relations for Russia

April 11, 2002

Good Morning. This is a hearing of the Ways and Means Trade Subcommittee to consider granting Permanent Normal Trade Relations, or PNTR, to Russia and to assess U.S.-Russia trade relations.

We are at a unique crossroads in the overall U.S. - Russian relationship, and I find this topic quite timely. As a Cold Warrior, I supported President Reagan's policies toward the Soviet Union. Reagan led both of our countries down a path that altered the course of history, and freedom and democracy triumphed. As a result of those policies, today we face a very different Russia from the nation that existed when the Jackson-Vanik provisions were passed in 1974. Since the fall of the Soviet Union over a decade ago, Russia has taken tremendous steps toward increased political and economic freedom. Today Russia has a maturing democracy. Russian citizens have successfully participated in three democratic elections for President and the Duma, and another Duma election will be held next year.

Russia has also undertaken significant economic reforms. The process has had some problems along the way but President Putin and his administration have made economic reform a priority, and I look forward to seeing private property rights and rule of law firmly take root in Russian governance.

I also expect our U.S. trade negotiators to bring back the best possible WTO accession package with Russia that addresses Congress' concerns, particularly with respect to the U.S. agriculture and fertilizer industries. I intend to follow this issue closely and consult with the Administration on the terms of Russia's accession.

In the meantime, I am extremely disappointed that Russia has not lifted its ban on U.S. poultry exports and has extended the ban at least an additional two days. I believe it will be very difficult for some Members to support PNTR for Russia unless this dispute is resolved in a way that is based on sound science. I note that in the written statement that Russian Ambassador Ushakov provided for the record of this hearing, he stated that we need to create a "transparent and predictable" climate between our two countries. I agree, and this includes a commitment not to erect trade barriers in the name of sanitary concerns that are in fact based on politics. If there are legitimate concerns with some U.S. chicken processing facilities, then we should deal with this in a focused way. Instead, Russia has provided no good reason to continue a complete ban on all U.S. poultry. Russia's poultry ban has caused serious damage to our trade relationship, and I ask the Ambassador to send this message back to Moscow.

Jackson-Vanik is fundamentally about freedom of emigration, and it is widely recognized that Russia has done a tremendous job with regard to the free emigration of Jews. For eight years, Russia has been in full compliance with the freedom of emigration provisions in the law. My brother-in-law is the son of holocaust survivors, so this is something that is directly relevant to my family.

The President says he wants PNTR for Russia to help further a new relationship with Russia. He wants it for geopolitical reasons. Well, I want it for economic reasons. This is good for Russia and for the United States. With PNTR, U.S. investors and entrepreneurs will have more confidence in doing business in Russia. This confidence will foster more trade and investment between our two countries. It's no surprise to me that the U.S.-Russia Business Council-whose members are the pioneers doing business in Russia-is strongly advocating PNTR for Russia.

In a speech at the State Department last week, President Bush said-and I wholeheartedly agree-that free trade creates the habits of freedom, generates expectations of democracy, and promotes universal values of human dignity and human rights. With this in mind, I believe it is appropriate and timely for the Congress to consider extending PNTR to Russia to remove one of the final vestiges of the Cold War.

I look forward to hearing the testimony of our witnesses today, and I yield to the Ranking Minority Member of the Subcommittee, Mr. Levin, for any remarks he would like to make.

Today we will hear from a number of distinguished witnesses. In the interest of time, I ask that you keep your oral testimony to five minutes. We will include longer, written statements in the record. And now I welcome my colleagues Mr. Lantos and Mr. Cox to hear their testimony.