Bipartisan PNTR Russia Legislation Introduced by Finance Committee Leaders

Although Democratic leadership in the House agreed to the administration's request to drop legislation to end Russia's permanent normal trade status, House Ways and Means Chairman Richard Neal, D-Mass., said late March 9: "Our response to this horrific, unprovoked war cannot end here. When Congress returns to Washington next week, we will act decisively, in a bipartisan manner, to suspend permanent normal trade relations with Russia and Belarus.”

The House voted to ban the import of Russia's oil, liquefied natural gas and coal just after 11 p.m. March 9 on a 414-17 vote. Two Democrats and 15 Republicans voted no.

The top Republican on the Ways and Means Committee, Kevin Brady, R-Texas, joined by all the Republican members of the committee, introduced a bill that would remove permanent normal trade relations status from both Russia and Belarus, and give the administration the option to hike tariffs higher than those in Column 2 until Jan. 1, 2024, after giving the trade committees five days' notice, and an explanation of why, and what the potential impact would be. It also gives the administration the authority to restore most-favored nation tariffs on products from the two countries for one-year periods after consultation with the committees and after certifying that the country or countries had "ceased all acts of aggression against Ukraine, poses no immediate threat of aggression against any NATO ally and recognizes a free and independent Ukraine with the ability to choose its own government."

The top Republican on the Ways and Means Trade Subcommittee, Rep. Adrian Smith, R-Neb., said, "We should not limit our options when holding Vladimir Putin and any nation that joins his attack on Ukraine accountable for their actions. This bill is much stronger than the bill House Democrats brought to the floor, and it is the product of bipartisan and bicameral negotiations. It’s unfortunate President Biden pushed to water it down, and disappointing House Democrats obliged."

On March 8, Senate Finance Committee Chairman Ron Wyden, D-Ore., and Ranking Republican Sen. Mike Crapo, R-Idaho, introduced a bill that would suspend PNTR with Russia and Belarus. Crapo said in a statement March 9, " Importantly, the legislation provides Congress the ability to overturn any attempt to lift the ban.”

The Senate bill and House Republican bill both reflect the bipartisan agreement reached among Neal, Brady, Crapo and Wyden on removing PNTR. Brady said on the floor of the House as debate began on the oil ban, "I was proud to have helped lead that bipartisan effort of the House Ways & Means and Senate Finance committees -- and pleased that President Biden, who fought the Russian energy ban tooth and nail, finally relented, and accepted the moral choice to stand with the people of Ukraine."

He complained that the bill did not include an end to PNTR and also did not extend secondary sanctions on Russian energy purchases. If it had, that would have caused problems for Western Europe, which relies on Russian natural gas and oil.