The House of Representatives overwhelmingly passed the Russia Permanent Normal Trade Relations (PNTR) legislation by a vote of 365-43. The legislation will allow the United States to receive the same economic benefits in Russian markets that other World Trade Organization (WTO) members receive.

P. Scott Shearer, Vice President

November 19, 2012

2 Min Read
House Passes Russia PNTR

The House of Representatives overwhelmingly passed the Russia Permanent Normal Trade Relations (PNTR) legislation by a vote of 365-43. The legislation will allow the United States to receive the same economic benefits in Russian markets that other World Trade Organization (WTO) members receive. The trade agreement, which includes tariff and sanitary provisions important to agriculture, was negotiated with the United States and other WTO members in order for Russia to join the WTO, including:

· Pork: Russia has agreed to a global Tariff Rate Quota (TRQ) of 400,000 tons for fresh/chilled/frozen pork and a separate TRQ of 30,000 tons for pork trimmings. Both TRQs will have zero in-quota rates. As of Jan. 1, 2020, Russia will adopt a tariff-only regime for pork with a bound duty of 25%. Russia will apply this duty to all imports. 

· Beef: Russia expanded beef access from 41,700 tons to 60,000 tons through a U.S.-specific TRQ, with a 15% in-quota tariff. In addition, Russia has established access for high-quality beef with a 15% tariff outside of the tariff rate quota for beef. 

· Live Animals: Russia has committed to a final bound tariff of 5% for live animals, with some tariff lines at zero. Russia currently applies up to a 40% tariff on live animals. 

· Poultry: Russia will maintain a 250,000-ton TRQ for chicken halves and leg quarters with an in-quota tariff rate of 25% and separate TRQ access for commercially important turkey products. 

· Russia will be required to apply its trade regime consistent with WTO rules, including those on technical barriers to trade, subsidies, sanitary and phytosanitary measures, thereby limiting its ability to engage in arbitrary actions that have hindered U.S. exports of goods and services.

The Senate is expected to pass the PNTR legislation in December.

About the Author(s)

P. Scott Shearer

Vice President, Bockorny Group, Inc.

Scott Shearer is vice president of the Bockorny Group Inc., a leading bipartisan government affairs consulting firm in Washington, D.C. With more than 30 years experience in government and corporate relations in state and national arenas, he is recognized as a leader in agricultural trade issues, having served as co-chairman of the Agricultural Coalition for U.S.-China Trade and co-chairman of the Agricultural Coalition for Trade Promotion Authority. Scott was instrumental in the passage of China Permanent Normal Trade Relations and TPA. He is past chairman of the USDA-USTR Agricultural Technical Advisory Committee for Trade in Animals and Animal Products and was a member of the USAID Food Security Advisory Committee. Prior to joining the Bockorny Group, Scott served as director of national relations for Farmland Industries Inc., as well as USDA’s Deputy Assistant Secretary for Congressional Affairs (1993-96), serving as liaison for the Secretary of Agriculture and the USDA to Congress.

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