There’s Bipartisan Support to End Russia’s Normalized Trade Status with the United States

By Elizabeth Brotherton-Bunch
Mar 03 2022 |
Cargo ships traveling off the Black Sea coast near Gelendzhik, Russia. Getty Images

Members of Congress from both parties have introduced legislation to end Russia’s Permanent Normal Trade Relations (PNTR) status, which allows Russian imports to be subject to lower tariffs.

As the United States and its allies around the world continue to find new ways to sanction Russia in response to Vladimir Putin’s unprovoked invasion of Ukraine, lawmakers on Capitol Hill are aiming to revoke the country’s unrestricted trade access to the United States.

When Russia joined the World Trade Organization (WTO) in 2012, it was granted Permanent Normal Trade Relations (PNTR) status with the United States, which means that Russian imports are subject to lower tariffs.

But given Putin’s decision to launch an unjustified war, there’s now bipartisan support to restrict trade with Russia as part of the wider effort to damage Russia’s economy. Sen. Rob Portman (R-Ohio) — who notably helped negotiate Russia’s PNTR status back when he was U.S. Trade Representative — is among those who have introduced legislation to revoke it now, noting on the Senate floor that “free trade with the United States is a privilege, not a right.”

Portman continued:

“As easily as we granted PNTR, Congress can take it away. Invading a sovereign nation, a democracy no less, is certainly grounds for us to take away that privilege, and we have the right to undo it under the WTO rules for national security reasons.”

Sen. Ben Cardin (D-Md.) cosponsored the bill, called the “No Trading With Invaders Act,” arguing that “a country that invades another country without any provocation should not be entitled to normal trade relations with the United States.”

Along with revoking Russia’s PNTR status, the measure also would take away PNTR for any future country that invades another WTO member — something that would apply to say, China, should it invade a neighbor like Taiwan. And the legislation also would “permanently reauthorize the Global Magnitsky Human Rights Accountability Act which authorizes the President to impose sanctions on individuals and entities involved in major human rights abuses and acts of corruption.”

Portman and Cardin aren’t the only other Members with legislation out there to revoke Russia’s PNTR status. Senate Finance Committee Chairman Ron Wyden (D-Ore.) also introduced a measure this week, called the “No Most Favored Nation Trading with Russia Act,” while Reps. Earl Blumenauer (D-Ore.) and Lloyd Doggett (D-Texas) put forth similar legislation last week.

Several U.S. allies already have made moves, including Canada, which on Thursday removed “most favored nation status” with both Russia and Belarus. The European Union is considering similar action. There also is growing talk about kicking Russia out of the WTO all together, something the Wyden and Blumenauer/Doggett bills also seek to do.

When it comes to U.S. action specifically, it’s probably unlikely that revoking PNTR alone will change Putin’s mind and stop the war. But as multiple Members of Congress pointed out when introducing these bills, doing so makes sense as part of the larger effort to ensure Putin and his cronies face consequences for their unjustified actions and are cut off as much as possible from the world economy. Congress should get this done.