[Congressional Record (Bound Edition), Volume 152 (2006), Part 16] [Extensions of Remarks] [Pages 21775-21776] [From the U.S. Government Publishing Office, www.gpo.gov]WHY CONGRESS SHOULD TAKE A CLOSER LOOK AT RUSSIA'S WTO ACCESSION PROCESS ______ HON. DARRELL E. ISSA of california in the house of representatives Friday, September 29, 2006 Mr. ISSA. Mr. Speaker, as Congress leaves for the upcoming November elections, I would like to raise an issue that will gain more attention over the next few months--a U.S.-Russia bilateral agreement on Russia's membership in the World Trade Organization. As someone who is watching the U.S.-Russia WTO negotiations very closely with a keen interest in the outcome, I think it is important to acknowledge the obstacles that remain. While a successful U.S.-Russia WTO agreement can be imagined, the reality of the current situation is that both sides are still apart on key issues. I urge my colleagues to keep a watchful eye on these negotiations, which will have important consequences for U.S. industries, workers and consumers. Some say Russia has made progress in its actions, commitments and negotiations with the United States over the past year. However, both countries were unable to meet the goal of concluding WTO talks at the July Group of Eight meeting in St. Petersburg, Russia. The new goal for the completion of negotiations is when Presidents Bush and Putin meet at the November 2006 Asia Pacific Economic Cooperation (APEC) forum in Vietnam. The United States and the global community will ultimately benefit when Russia becomes a member of the World Trade Organization. Although Russia's economy in a developing stage in many respects, its economic progress since the end of the cold war and potential for growth are positive trends. The complete integration of Russia into the global economy is an important step that will help Russia and its trading partners. It will also help to support the continuation of positive U.S.-Russia relations. However, at this stage, significant obstacles to Russia's WTO accession remain and must [[Page 21776]] be addressed. Russia's behavior in a number of areas and its lack of concrete commitments on important issues is contrary to the spirit of free trade and the WTO and must be reversed. In essence, the WTO is a set of rules and commitments and a forum for dispute resolution, factors that make it fundamentally different than most international organizations with extended bureaucracies. In this manner, these rules and commitments must be honored if the WTO is to have any meaning whatsoever. Russia is failing to uphold standards that many in the U.S., Europe and elsewhere believe are essential for WTO accession. The area of intellectual property is a prime example. Due in large part to Russia's failure to enforce its anti-piracy and intellectual property protection laws, 421-2 of my House colleagues joined me in passing a resolution in December 2005 (H. Con. Res. 230) that called on Russia to provide adequate and effective protection of intellectual property rights, or it risk losing its eligibility to participate in the Generalized System of Preferences (GSP) program and to ensure that intellectual property is securely protected in law and in practice to demonstrate that it can meet international commitments like the WTO. Earlier this year, House Ways and Means Chairman Bill Thomas (R-CA) and Ranking Democratic Member Charles Rangel (D-NY) as well as Senate Finance Committee Chairman Charles Grassley (R-IA) and Ranking Member Max Baucus (D-MT) co-signed a letter to President Bush stating that they will not support Permanent National Trade Relations for Russia unless Russia takes definitive action to address current issues. In the energy sector, the Russian government's interference in the market and de facto renationalization of selected assets calls into question its commitment to free and fair trade. The Council on Foreign Relations, task force on Russia listed a number of disappointing trends in Russia's energy market, including ``the revocation of longstanding Exxon Mobil licenses for the Sakhalin natural gas fields and the destruction of the Yukos Oil company as part of a reassertion of state control over the energy sector.'' The report also mentioned the cut off of natural gas supplies to Ukraine in response to its pro-western orientation. With U.S. oil and natural gas prices reaching record highs, it is very important that we develop a tough, but open, energy trade policy with Russia. The United States remains concerned about access to the Russian banking, financial services and insurance markets, all of which are substantially restricted for foreign companies. The U.S. is advocating on the opening of bank branches, but Russia has repeatedly insisted that foreign banks be required to open a full subsidiary, not a branch, when entering Russia. In the insurance industry, Russia does not allow foreign insurance companies to underwrite and reinsure mandatory forms of insurance, including motor vehicles, health and government institutional insurance. Before Russia passed legislation in late 2003 to expand foreign ownership to 25 percent, the EU had considered the Russian insurance industry essentially closed. According to the President's 2006 Trade Policy Agenda and 2005 Annual Report, the U.S. remains concerned about market access for poultry, pork and beef in the wake of a June 15, 2005 agreement with Russia. The issue of how the agreement is being implemented, specifically questions that a U.S. quota could be used by other countries, is currently under discussion. The United States is currently in the midst of its bilateral negotiations with the Russian Federation to agree to Russia's membership and participation in the World Trade Organization. The United States is one of only a few nations remaining that must conclude a bilateral WTO agreement before Russia formally accedes to the WTO. As this process continues, it is critical that Congress consider Russia beyond specific commercial issues and commitments on trade issues. Congress should consider that Russia's is regressing in its movement towards a more democratic society and free market economy because both issues have important ramifications for our trade relationship. As a member of Congress who serves on the House Judiciary and International Relations Committees and Chairs the Energy and Resources subcommittee of the Government Reform Committee, I am engaged in the formulation of policy on intellectual property, U.S. foreign policy, and energy issues. Therefore, I see the U.S.-Russia trade relationship from a variety of perspectives. I also see the important relationship between market and democracy trends and Russia's WTO accession process. I urge my colleagues to pay attention to these larger trends, some which are disturbing, as you consider Russia's progress on WTO negotiations with the United States and the eventual consideration of the Jackson-Vanik legislation and granting of PNTR to Russia. Russia must be held accountable under a WTO agreement that protects free and fair trade. ____________________