13.02.09

Influential American politicians and business circles are ready to actively press for waiving the Jackson-Vanik amendment whose effect is discriminatory for Russia, chairman of the international affairs committee of the Federation Council upper house of Russia's parliament Mikhail Margelov told Itar-Tass in an interview on Tuesday. He met representatives of the US legislative and executive power branches.

The amendment to American Trade Act was adopted by the Congress in 1974 and linked the normal trade relations between the two countries with the freedom of Jewish immigration from the USSR. Jackson-Vanik amendment, named for its major co-sponsors, Sen. Henry "Scoop" Jackson (D-WA) and Rep. Charles Vanik (D-OH), denied most favoured nation to certain countries with non-market economies that restricted emigration rights. Permanent normal trade relations would be extended to a country subject to the law only if the President determined that it complies with the freedom of emigration requirements of the amendment.

According to Margelov, the Jackson-Vanik amendment waiving issue was discussed at his meeting with US former Secretary of Defence in the Clinton administration William Cohen and a group of renowned American congressmen. "It is pleasant that both William Cohen as an influential politician and representatives of the American business community have stated readiness to actively lobby for this on Capitol Hill," said the Russian FC member.

The issue of Russia's admission to the World Trade Organization (WTO) is inseparably linked with waiving the discriminatory Jackson-Vanik amendment and giving Russia the permanent status of a normal trade partner of the United States. Without waiving this amendment by the US side, Russia will not be obligated to give the most favoured status to American companies, that is the United States will deprive itself from positive results of Russia's membership in the WTO.

So the American business community, said Margelov, is becoming increasingly aware of this. "I think that we will soon see serious lobbying efforts in the United States aimed at cancelling the Jackson-Vanik restrictions," he said. "The US-Russia Business Council (USRBC) is also working in this direction," he added.

Margelov said that on Friday together with USRBC President Ed Verona he would fly for a third, already traditional tour of American states. One of the goals of this trip is to tell the Americans about the realities of the contemporary Russia and about possibilities for Russian-American business and regional cooperation. This time the tour's programme includes visiting Alaska.

The USRBC said in a press release, "We are pleased to announce the next USRBC Road Show with RF Senator Mikhail Margelov. From February 7-10, USRBC President Ed Verona and Senator Margelov will travel together to Alaska in an effort to continue educating the broader business community, local government officials and local media about the importance of the US-Russian relationship and the opportunities for economic and political cooperation that exist between our countries."

"This Road Show is timed to coincide with the change of Administration in Washington, DC, which we view as an opportunity for a fresh approach to US-Russia relations. USRBC is committed to highlighting the need for continued engagement with Russia and to advancing an agenda where our countries share common goals, even when we may have differences," it said.

The US-Russia Business Council is a Washington-based trade association that provides significant business development, dispute resolution, government relations, and market intelligence services to its American and Russian member companies.

The USRBC provides senior management of American companies a forum to continually monitor their Russian market strategies as conditions change. The Council has also successfully acted on behalf of member firms to resolve specific commercial disputes and to influence Russian policies that negatively impact their business in Russia.

For Russian companies looking to raise their profile and grow their business - within Russia and in the United States - the USRBC leverages relationships with major industry players, international finance organisations, and US government agencies to assist in strategic planning and in partner searches. Russian members benefit from an unparalleled forum for visibility and networking, thereby demonstrating their commitment to open and transparent commercial activities.

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Source: Itar-Tass