Statements on Introduced Bills and Joint Resolutions S. 1557

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

S. 1557. A bill to authorize the extension of nondiscriminatory treatment (normal trade relations treatment) to the products of Armenia; to the Committee on Finance.

Mr. SARBANES. Mr. President, I rise to join my colleague from Kentucky, Senator MCCONNELL, in introducing
legislation to grant PNTR to Armenia.

Since becoming an independent sovereign state in 1991, with the collapse of the Soviet Union, Armenia has pursued comprehensive economic reforms within a democratic framework. Armenia's accession to the World Trade Organization this year reflects its continuing progress in adopting and implementing economic and trade reforms, and it now ranks 44th among the 161 nations surveyed in the "2003 Index of Economic Freedom" that the Wall Street Journal and the Heritage Foundation have jointly published.

As a one-time Soviet republic, Armenia continues to be subject to the freedom-of-emigration requirements set out in Title IV of the Trade Act of 1974, the Jackson-Vanik amendment, and therefore its trade status is subject to annual review by the President. Since becoming independent Armenia has annually received the waiver provided under Jackson-Vanik, and indeed for the past 6 years Armenia has been found to be fully in compliance with the amendment.

So long as Armenia remains subject to the Jackson-Vanik provision, the United States is precluded from extending PNTR status and normalizing U.S.-Armenian trade relations. At the same time, however, WTO rules require the United States to grant PNTR to all other WTO members without condition. Our legislation would resolve this contradiction by authorizing the President to terminate the Jackson-Vanik provision with respect to Armenia and extend PNTR. Without PNTR, neither Armenia nor the United States will be able to realize the full benefits of Armenia's accession to the WTO.

PNTR will bring the United States into compliance with WTO rules. And it will significantly expand opportunities for bilateral trade between the United States and Armenia.

In addition, it will enable Armenia to deal more effectively with the challenges of building a vigorous and prosperous economy, at a time when 50 percent of the population lives in poverty and the poverty rate has dropped from 55 percent only in the last 2 years. These challenges are made all the more daunting by the blockades that Azerbaijan and Turkey continue to impose; according to the World Bank, these blockades raise the cost of doing business in Armenia by 30 percent. Expanded U.S.-Armenian trade will act as a spur to greater economic activity in Armenia, which in turn will lead to more and better-paying jobs and ease the hardships that Armenians confront in their daily lives.

The ties between our country and Armenia are strong, and normalization of trade relations will make them stronger still. I urge my colleagues to join me in supporting this legislation.