Baucus meets Medvedev ahead of Russia trade debate

Senate Finance Committee Chairman Max Baucus (D-MT) is on his way back from Russia after meeting with outgoing Russian President Dmitry Medvedev in anticipation of a coming congressional debate on giving Russia Permanent Normalized Trade Relations (PNTR) status.

The visit was closely coordinated with the Obama administration, according to a Baucus aide. Baucus is anticipating a debate over granting Russia PNTR, which would also require the repeal of the 1974 Jackson-Vanik law, sometime this spring or summer. By then, Russia will be a full member of the World Trade Organization and U.S. businesses would be disadvantaged from doing business in Russia if the PNTR issue is not resolved, according to Baucus.

But the Baucus camp was keen to stress that the senator’s focus went well beyond economic access for American companies.

"Baucus wanted to learn more and prepare himself for this year’s debate to prepare himself and other members as he did last year with Colombia before the free trade debate," his aide told The Cable. "Baucus definitely stressed democracy and human rights concerns with Medvedev as he did with several other senior Russian officials on the trip. He also met at length with civil society activists — democracy, human rights and environmental activists — as well as another meeting with leading transparency and anti-corruption advocates."

Some GOP offices want to link the issues of human rights and corruption in Russia to the granting of PNTR status. Those offices are pushing for passage of Sergei Magnitsky Rule of Law Accountability Act of 2011, named for the anti-corruption lawyer who was allegedly tortured and died in a Russian prison exactly two years ago today.

These Republicans — who include House Foreign Affairs Chairwoman Ileana Ros-Lehtinen (R-FL) — want passage of the Magnitsky bill to be the cost of repealing the 1974 Jackson-Vanik amendment, which prevents Russia from getting PNTR status. The administration would prefer not to link Magnitsky to this trade status, because it would cause the Russians to take retaliatory measures against the U.S. in other areas of bilateral cooperation. Administration officials are proposing a fund to support a new democracy and human rights foundation in Russia instead, but Republicans are cool on that idea.

The Russians staunchly oppose the Magnitsky bill. In fact, the Russian government is moving forward with the prosecution of Magnitsky on criminal tax charges, even though he is dead.

In a press release before his trip, Baucus argued that granting PNTR status for Russia could result in a doubling of U.S. exports to Russia, which now stand at about $9 billion per year. He also argued that a package of concessions Russia made to the United States before being invited to join the WTO would result in benefits for U.S. animal and agricultural industries and will result in Russia tamping down its own domestic agricultural subsidies.

"Opening doors overseas in countries like Russia will propel our economic recovery forward and create jobs across the United States," Baucus said.  "Holding Russia to its promises as it enters the WTO and seeking a greater share of the Russian market is a one-way economic benefit for the United States and an absolute no-brainer."

Baucus’ home state of Montana is a major beef exporter and Russia is currently the fifth largest importer of American beef. Baucus has touted Russia’s agreement to reduce beef tariffs as part of its WTO accession.

On Feb. 20, in addition to Medvedev, Baucus met with First Deputy Prime Minister Igor Shuvalov, Russia’s top official on economic and trade issues, and Minister of Economic Development Elvira Nabiullina. On Monday, Baucus also met with Russian Minister of Agriculture Yelena Skrynnik and Foreign Minister Sergei Lavrov.

"Meeting with Foreign Minister Lavrov, Baucus pushed for Russia to reevaluate the positions it has taken on Syria and Iran. He asked what steps Russia is willing to take to halt the violence in Syria, given that every effort to date has failed, and discussed Russia’s response to Iran’s nuclear program," his office said Tuesday. There was no word about Lavrov’s response to those questions.