Terminating the Application of Jackson-Vanik Legislation to Russia

After the end of the Soviet Union, much of our relationship with Russia was colored by the Soviet legacy. Gradually that legacy has passed, and today only a bits and pieces of it remain. This Administration recognizes that a new relationship is taking shape: a relationship that is expanding cooperation between our two countries, enhancing our national security, supporting further development of the market economy in Russia, and strengthening democracy and human rights protection.

As Secretary Powell has said, the Administration has made remarkable progress in developing a new relationship with Russia. Russia has taken significant steps before and since September 11 to strengthen ties with the West and assist the U.S. in many critical areas. We need to affirm that President Putin has made the right decisions in pursuing a partnership with us.

Russia has come very far forward since the fall of the Soviet Union. It is no longer the enemy, the President reminds us. As we put the relics of the Cold War behind us, the President strongly urges Congress to graduate Russia now from Jackson-Vanik.

This amendment was created to bring about free emigration in the Soviet Union and foster broader human rights reforms with Russia. That objective has been accomplished. Jackson-Vanik also began a process, which elevated human rights to an integrated element of our foreign policy. Graduating Russia from Jackson-Vanik now is the right thing to do.

Terminating Jackson-Vanik's application to Russia will bolster a new political, strategic, and economic bilateral relationship.

President Bush wants to send President Putin a signal that the United States is a reliable partner. In Washington last fall, the President expressed to President Putin his commitment to work with the Congress in seeking Russia's graduation from Jackson-Vanik. We believe now is the appropriate time to take this step, and we ask for your full support.

Emigration

The principal goal of the Jackson-Vanik legislation in 1974 was to promote free emigration from the Soviet Union, particularly for Soviet Jews.

We do not forget the oppression of Soviet citizens -- including religious minorities. In the spring of 1972, the Soviet government imposed an "education tax" on would-be emigrants. This tax was so steep that few could afford to depart the Soviet Union. It was against this background that Senator "Scoop" Jackson teamed up with Congressman Charles Vanik to attach their historic amendment to the 1974 Trade Act. Jackson-Vanik has been a tremendous success. Restrictions on emigration from Russia have ended. Today, the Russian Constitution grants the right to Russian citizens to emigrate. This right is readily exercised.

Since Jackson-Vanik came into effect in 1975, 573,000 refugees -- many of these Jews, evangelical Christians and Catholics -- have resettled from the Soviet Union to the United States. Since the passage in 1989 of the Lautenberg Act, almost 235,000 Jews from the Soviet Union and its successor states have resettled in the United States. Today, the Russian Jewish community in the United States numbers between 750,000 and 1 million, though some estimates are twice as high. Since 1975, another one million Russian Jews have immigrated to Israel.

In perhaps one of the most telling reversals of political fortune, Natan Sharansky -- once a "refusenik" imprisoned by Soviet authorities -- has, as one of Israel's Cabinet Ministers, met with President Putin in Moscow. Sharansky himself now favors terminating the application of Jackson-Vanik to Russia.

The only emigration restrictions that remain today in Russia relate to those who have had access to state secrets. Russian legislation permits delays of up to five years, with the possibility of a five-year extension, on those with access to classified material. This law, however, has been applied only in a small number of cases. Moreover, Russian legislation provides for an appellate process; that process has found in favor of the emigre in the large majority of cases.

Let me turn to the broader context of U.S.-Russian relations.

Strategic and Foreign Policy

We are building a new bilateral relationship with Russia. President Putin has willingly reversed former Soviet (and early post-Soviet) positions. He has chosen a course designed to make Russia a leading and responsible part of the international community. The active nature of U.S.-Russian cooperation over the past few months would have been unthinkable at the time of the 1974 passage of the Jackson-Vanik Amendment.

Under President Putin, Russia has:

-- Offered extensive support in the global campaign against terrorism: information-sharing, overflight clearance for U.S. aircraft, and search and rescue assistance. Contrary to what many Western analysts would have predicted, President Putin has posed no objections to the stationing of U.S. forces in Central Asia or a U.S. "Train and Equip" program for Georgia to fight terrorism.

-- Accepted our offer of parallel reductions in operationally-deployed nuclear warheads to the lowest levels in decades: down to between 1,700 and 2,200.

-- Accepted our decision to move beyond the ABM Treaty and demonstrated more openness to our arguments on missile defense.

-- Opened the way to a closer NATO-Russia working relationship, and dropped past strident Russian objections to NATO enlargement.

-- Coordinated with us and closely supported the U.S. position on the Middle East.

-- Announced the closing of Russia's massive intelligence facility at Lourdes, Cuba and withdrawal from the Cam Ranh naval base in Vietnam.

-- Cooperated with us in the Balkans as we continue efforts to promote a lasting settlement and stable, democratic development.

-- Maintained dialogue with us on Iraq, opening the way for UN Security Council agreement on a Goods Review List to streamline and make more effective the sanctions regime.

-- Sustained oil production despite pressure from OPEC to make cuts and boost prices, thus helping to sustain a moderate global price.

Economy

In the economic sphere, we also enjoy a dynamic, productive relationship with Russia. The relationship stands in stark contrast to what existed during the Soviet period. But key economic reformers are under fire from some in Russia who do not understand the wisdom of integrating into the global economy; these reformers look for our support.

We believe President Putin is committed to meaningful economic reform, and we are engaged actively to help Russia to accelerate and deepen its reforms. Those reforms will promote stability and prosperity for the Russian people -- objectives very much in the U.S. national interest -- as well as open new markets for U.S. business and create a more attractive climate for U.S. investors.

Let me illustrate some of the changes in the economic situation in the past decade.

President Putin has recognized that small and medium-size enterprises (SMEs) are a key source of growth and employment, and has publicly committed to create conditions that allow SMEs to flourish, many spurred by American training or American partners.

Russia welcomes joint ventures and other investments by non-Russian firms. Although foreign direct investment (FDI) in Russia is proportionately low compared to many other countries, it is beginning to grow, and American firms account for the leading share, 35 percent, of total cumulative FDI.

Americans have invested in Russia in a range of economic sectors throughout the regions of Russia. For example, Ford Motor Company is investing $150 million to produce the Focus car chassis in Leningrad oblast.

General Motors is investing $330 million to build the Niva sport utility vehicle under the Chevrolet name.

Lockheed Martin, Boeing, and United Technologies are among those expanding cooperation and coproduction with Russia's aerospace industry.

The Caspian Pipeline Consortium, led by Chevron Texaco and Exxon Mobil, has built the one thousand mile-long TengizNovorossiysk pipeline, investing some $2.2 billion in Russia.

Exxon Mobil has announced a $4.7 billion commitment to Phase-I development of the Sakhalin-I offshore project, which could total $12 billion.

The U.S.-Russia Business Dialogue initiated at the June 2001 Summit and the Banking Dialogue have brought together leading American and Russian private-sector managers to make recommendations on how to change laws and regulations which hamper trade and investment, and ways to strengthen the rule of law. The recommendations developed by these business leaders will be presented to President Bush and President Putin for consideration and action.

WTO Accession

I defer to Ambassador Allgeier to discuss Russia's efforts and progress on WTO accession. It is clear that Russia still has a great deal of work to do and will not accede precipitously to the WTO. Nevertheless, I believe that we have the ability -- given Russia's commitment to reform, our new partnership with Russia, and the personal relationship established between Presidents Bush and Putin -- to work through WTO accession issues and resolve other trade problems effectively with Russia, to the benefit of American farmers, workers, consumers, and investors.

Trade issues arise, as they do with all countries. With Russia, our much stronger political relationship now strengthens our ability to resolve them in a constructive, cooperative and businesslike fashion. This has been the case in addressing our concerns on steel and those of Russia on poultry.

Human Rights / Religious Minorities

Since the end of the Soviet Union, we have sought a relationship with Russia based on shared values. Among these is a fundamental respect for human rights. We still have significant concerns about human rights issues in Russia, but clearly, Russia has shed the worst features of the Soviet past.

Personal freedoms, such as freedom of religion, assembly, and speech, have expanded greatly. And reforms continue. Recently enacted Russian legislation will -- when implemented -- limit the power of prosecutors, mandate jury trials throughout the country, and create a more adversarial judicial process, as well as strengthen the independence of the judiciary. We will remain watchful that these gains are not rolled back. We will work with Russia -- its government and its people -- so that the expansion of personal freedoms continues and the legal mechanisms meant to protect human rights are strengthened.

While further progress is necessary, much already has been achieved:

We have witnessed a revival of religious life and traditions throughout Russia. Even with current problems, Russia is freer than at any time in history.

There is a renaissance of synagogues and religious schools, whether Hasidic, traditional Orthodox, or Reform. President Putin has reached out to the Jewish Community and spoken out against anti-Semitism, declaring that Russia is a multiethnic state where the rights of all must be protected. Across all faiths in Russia, there has been progress, which we are working to expand further, in the return of religious and communal property.

President Putin and others in his government have reaffirmed their commitment to uphold legal and regulatory provisions throughout Russia to safeguard religious freedoms. In his recent Rosh Hoshannah message to the Jewish Community, President Putin wrote "Unfortunately, we still encounter some manifestations of anti-Semitism. There is no justification for them, nor can there be."

And, as Foreign Minister Ivanov wrote in his November 13th letter last year to Secretary Powell, "The fundamental objectives of our policies are to ensure personal freedom, prevent intolerance based on race, religion and ethnicity." Foreign Minister Ivanov reaffirmed Russia's commitment to continuing its efforts to transfer religious property in accordance with existing Russian laws.

Conclusion

There is no doubt that Jackson-Vanik has been a successful tool to help Soviet citizens win the opportunity to escape from Soviet repression.

But that Soviet era, marked by repression and denial of basic freedoms, is over. Russia has been in compliance with the statutory Jackson-Vanik emigration provision for almost ten years. Graduating Russia now is the correct and logical step to take.

The communities that long sought these changes in Russia and had previously opposed action on Jackson-Vanik now agree that it is time to acknowledge Russia's efforts and end the application of this statute.

In 1974, Jackson-Vanik was aimed in part at pressing the Executive Branch to address emigration and other human rights issues. Successive U.S. Administrations have integrated human rights issues into every aspect of our foreign policy dialogue with Russia and with other nations. Ending Jackson-Vanik's application to Russia does not end our dialogue on human rights issues or weaken our determination to express our concerns about any problems. But doing so will mark the success in reinforcing that freedom of movement, including emigration, is a fundamental right.

President Bush has reaffirmed this Administration's commitment to broad human rights and religious freedom principles on numerous occasions. He has pledged that the Administration will continue to work with Russia to help freedom and tolerance become fully protected in law and to safeguard religious liberty.

We will continue to engage in an active dialogue with Russia on civil liberties and religious freedom issues and we will report regularly to the Congress on these issues. Our bilateral assistance effort in Russia includes programs that promote democracy and promoting civil liberties. Through the Department and our Embassy and consulates in Russia, we are in touch with human rights advocates across Russia and the United States to stay informed of the state of human rights in Russia.

It is strongly in our interest to buttress the effort of reformers in Russia and to give encouragement to President Putin as he continues in pursuit of difficult reforms, often against domestic opposition. We all want Russia to maintain its forward momentum.

Graduation from Jackson-Vanik offers us an opportunity to commend the deep changes taken by Russia and to demonstrate our ongoing support to President Putin and his reform team. We ask that you join the President in acknowledging this new bilateral relationship we enjoy and graduate Russia from Jackson-Vanik now.