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ANCA: Congress Adopts Key U.S.-Armenia Trade Provision

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  • ANCA: Congress Adopts Key U.S.-Armenia Trade Provision

    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.
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