Cold War Amendment Means US Could Lose in Trade With Russia

Friday, 13 July 2012
Market News International

By the end of the summer, Russia will become the newest member of the World Trade Organization, opening its economy to the other 155 trading partners. However, a Cold War era U.S. law will prevent American firms from reaping the benefit of the increased export opportunities.

... National Foreign Trade Council Vice President Dan O'Flaherty told MNI repealing Jackson-Vanik and granting permanent normal trade relations would be a big improvement over the current situation, and has the potential to open up a major sector to U.S. businesses.

"The current arrangement with the Russians doesn't cover services, and services cover about 40% of our exports," he said. PNTR with Russia "brings in that whole sector of the economy that is excluded right now from the trade arrangement."

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