Jackson-Vanik Repeal

With Russia about to join the World Trade Organization (WTO) in mid-august this year, President Putin (of Russia) has been pushing to have PNTR (Permanent Normal Trade Regulations) with the U.S. This means repealing the Jackson-Vanik Act established during the Cold War (1980’s).

Originally, the Jackson-Vanik Act was put into place to punish the Soviet Union for violating human rights. The USSR was allowing not only children to work at young ages, but disgusting conditions for workers. Poor food quality, no breaks, sweat shops, and extremely low wages: The United States did not agree with this in the least, so the U.S established the Jackson-Vanik Act that taxed all imports from the USSR. This meant decreased demand for the USSR’s products and the result was devastating for the Soviet Union. Eventually, the USSR fell and the newly formed Russia established new laws to fix the way its people worked and lived; however, even with Russia’s new policies, the U.S never repealed the Jackson-Vanik. Rather, every year since, the U.S has simply waved the Act and allowed for normal trading with Russia. Sadly, waving the Act is not enough to allow Russia to join the World Trade Organization (WTO).

Logically, the U.S has no reason not to repeal the Jackson-Vanik (considering its original purpose was to punish the USSR which has not only fallen, but Russia has established human rights conditions to the liking of U.S senators). So why hasn’t the U.S not repealed this act? Having Russia join the WTO would be beneficial for both countries, right? The issue lies with the G.O.P. Many republican senators do not agree with allowing PNTR with Russia. Instead, many republican senators are willing to repeal the Jackson-Vanik Act if it is replaced with the Magnitsky Act (which is symbolically the same thing- it is an Act that punishes Russia for human rights issues by taxing their imports). Establishing this Act will be counter-productive considering Russia is going to be joining the World Trade Organization before the end of this summer; this Magnitsky Act will just be another barrier Russia will have to overcome (besides it’s pointless considering the U.S will most likely wave it annually like they do to the Jackson-Vanik Act). The United States should repeal the Jackson- Vanik Act, not replace it with the Magnitsky Act, and allow Russia to join the WTO this summer- opening doors for normal trade regulations and allowing the U.S and Russian economy to flourish.

http://english.ruvr.ru/2012_07_14/81484044/

http://www.kalemjournal.com/the-repeal-of-the-jackson-vanik-amendment-would-raise-hopes-for-a-deal-in-chicago1.html