Armenian National Committee of America
888 17th Street, NW, Suite 904
Washington, DC 20006
Tel. (202) 775-1918
Fax. (202) 775-5648
Email. [email protected]
PRESS RELEASE
November 19, 2004
Contact: Elizabeth S. Chouldjian
Tel: (202) 775-1918
CONGRESS ADOPTS KEY U.S.-ARMENIA TRADE PROVISION
Bill Granting Permanent Normal Trade Relations Status to Armenia
Headed for Presidential Signature
WASHINGTON, DC – The Senate, today, unanimously acted to
permanently normalize trade between the U.S. and Armenia, opening
the door to expanded economic relations, new commercial
opportunities, and the further strengthening of the longstanding
bonds between the American and Armenian peoples, reported the
Armenian National Committee Of America (ANCA). With the House
version of the measure adopted in October, the bill now goes to
President Bush for signature.
This provision, which grants Permanent Normal Trade Relations
(PNTR) status to Armenia, was adopted in the final hours of the of
the Senate lame-duck session as part of the larger bill, H.R.1047 –
the Miscellaneous Trade and Technical Corrections Act. The bill,
which has been held up due to human rights concerns in Laos, was
considered following a Senate vote to avert a filibuster of the
measure.
Armenian Caucus Co-Chairman Joe Knollenberg (R-MI) was the first to
raise the issue of Armenia PNTR in Congress. His legislation,
H.R.528, introduced last year was supported by the Armenian Caucus
and cosponsored by 112 other Members of Congress. A companion bill
was introduced on the Senate side by Senator Mitch McConnell (R-KY)
and cosponsored by 21 other Senators. The strong support for these
measures paved the way for their inclusion by members of Congress
negotiating the final version of the larger trade measure.
“The ANCA welcomes the Congressional passage of the Armenia-PNTR
bill and thanks Congressman Knollenberg, Senator McConnell and all
those who played a role in securing its passage,” said Ken
Hachikian, Chairman of the ANCA. “Following Presidential signature
of the measure, we look forward to exploring new opportunities to
further expand the growing U.S.-Armenia economic relationship.”
Over the past two years, the ANCA has worked, in Washington, DC and
in local communities throughout the country to generate bipartisan
support for this trade measure among legislators, including those
serving on key trade subcommittees. Over ten thousand pro-Armenia
activists sent ANCA WebFaxes to Congress, thousands more made phone
calls in support of PNTR, and this important issue was raised in
several hundred Congressional visits, both in District Offices and
the nation’s capital. The sample ANCA WebFax letter for activists
included several reasons to support this legislation, among them:
* Increased U.S.-Armenia trade and investment advances U.S. foreign
policy by strengthening Armenia’s free market economic development
and integration into the world economy.
* Expanded U.S.-Armenia commercial relations will strengthen
bilateral relations and reinforces the enduring friendship between
the American and Armenian peoples.
* Adoption of PNTR for Armenia will help offset – at no cost to
U.S. taxpayers – the devastating impact of the dual Turkish and
Azerbaijani blockades, estimated by the World Bank as costing
Armenia up to a third of its entire GDP (as much as $720 million
annually) and half of its exports.
The Trade Act of 1974 excluded all Soviet countries from having
normal trade relations (NTR) status with the United States. One
particular provision of the Act, known as the Jackson-Vanik
amendment, required the President to deny NTR to those countries
that restricted free emigration. The policy was adopted, in part,
in response to Communist government restrictions on the emigration
of Jews. According to the terms of the Jackson-Vanik amendment,
when the President determines that freedom of emigration rights
have been reinstated in a country, normal trade relations may be
granted. To maintain NTR, the President must report to Congress
twice a year that Jackson-Vanik requirements have been met. While
successive Presidents have waived the Jackson-Vanik Amendment
restrictions on Armenia during the past decade, the passage of the
Knollenberg bill, would grant Armenia permanent normal trade
relations status, without the need for semi-yearly Presidential
determinations.
The text of the Armenia PNTR provision is provided below:
Title II, Section 2001
Subtitle A – Miscellaneous Provisions
SEC. 2001. TERMINATION OF APPLICATION OF TITLE IV OF THE TRADE ACT
OF 1974 TO ARMENIA.
(a) FINDINGS. – Congress makes the following findings:
(1) Armenia has been found to be in full compliance with the
freedom of emigration requirements under title IV of the Trade Act
of 1974.
(2) Armenia acceded to the World Trade Organization on February 5,
2003.
(3) Since declaring its independence from the Soviet Union in 1991,
Armenia has made considerable progress in enacting free-market
reforms.
(4) Armenia has demonstrated a strong desire to build a friendly
and cooperative relationship with the United States and has
concluded many bilateral treaties and agreements with the United
States.
(5) Total United States-Armenia bilateral trade
for 2002 amounted to more than $134,200,000.
(b) PRESIDENTIAL DETERMINATIONS AND EXTENSIONS OF NONDISCRIMINATORY
TREATMENT.
Notwithstanding any provision of title IV of the Trade Act of 1974
(19 U.S.C. 2431 et seq.), the President may:
(1) determine that such title should no longer apply to Armenia;
and
(2) after making a determination under paragraph (1) with respect
to Armenia, proclaim the extension of nondiscriminatory treatment
(normal trade relations treatment) to the products of that country.
(c) TERMINATION OF APPLICATION OF TITLE IV.
On and after the effective date of the extension under subsection
(b)(2) of nondiscriminatory treatment to the products of Armenia,
title IV of the Trade Act of 1974 shall cease to apply to that
country.