U.S. Representative Sandy Levin
12th District of Michigan

(Washington D.C.)- The House of Representatives today passed H.R. 1053 on a vote of 417 to 2 granting Permanent Normal Trade Relations (PNTR) to Ukraine, paving the way towards Ukraine's accession into the World Trade Organization (WTO).  U.S. Rep. Sander Levin (D-Royal Oak), a senior member of the House Ways and Means Committee, spoke on the House floor in support of the measure, which also ends the application to Ukraine of the Cold War-era Jackson-Vanik Amendment linking trade benefits to the emigration and human rights policies of communist and former communist countries.

“Passage of Ukraine PNTR is a way for us to update our trading relationship by signaling our support for the progress Ukraine has made to date,” commented Rep. Levin.  “Although challenges lie ahead, this legislation points out the importance of Ukraine’s commitment to economic reforms and the evolution of democracy. The WTO accession agreement we have negotiated with Ukraine is satisfactory, and will spark further economic and democratic reforms. The Orange Revolution resounded throughout the globe; it was an important moment for all of us, and so is its progress on human rights and in terms of its elimination of anti-Semitism. ”

Before the United States can grant Ukraine nondiscriminatory treatment as a member of the World Trade Organization (WTO), Congress must terminate the application of Title IV of the Trade Act of 1974, known as the Jackson-Vanik Amendment, which links U.S. trade benefits to the emigration and human rights policies of communist or former communist countries. Since 1993, every administration has granted Ukraine NTR status each year based either on waivers authorized by statute or on determinations that Ukraine was in compliance with the criteria on which the Amendment is based.

“Passage of H.R. 1053 is further testimony to normalizing US/Ukraine trade relations and to Ukraine's joining the WTO,” said Borys Potapenko, Director of the Ukrainian Cultural Center in Warren. “The Ukrainian American community in Michigan and beyond deeply appreciates the leadership of the Congressional Ukrainian Caucus, co-chaired by Congressman Levin, on this and other issues that bring the American and Ukrainian nation’s closer together. The graduation of Ukraine from Jackson/Vanik is important step for advancing market and democratic reforms.”

President Viktor Yushchenko, who was elected in January 2005, has made PNTR a top priority in U.S. – Ukraine relations in anticipation of its membership to the WTO. Under WTO rules, Ukraine must conclude bilateral deals on market access for goods and services with any WTO member requesting negotiations. It is still negotiating bilateral agreements with eight other countries and must conclude multilateral negotiations regarding the overall all accession package. Areas covered under the U.S. bilateral agreement include market access to agriculture, services, industrial products, intellectual property, and state-owned enterprises. Major U.S. exports to Ukraine include poultry and agriculture machinery, while imports include steel, steel products, and coke used in making steel. During his April 6, 2005 address to Congress, Yushchenko urged Members of Congress to approve PNTR for his country.
 

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