Bill Ending Russia's Normal Trade Status Passes House

A bill that ends Russia's and Belarus's ability to export goods to the U.S. under the same tariff treatment as most of the rest of the world passed the House 424-8. Only Cuba and North Korea are subject to Column 2 tariffs; there is an embargo on imports from North Korea, and the U.S. imports almost nothing from Cuba. House Ways and Means Committee Chairman Richard Neal, D-Mass., said he intends to send this bill and the ban on oil, natural gas and coal imports from Russia, to the Senate at the same time.

The bill allows the Biden administration to increase tariffs on Russian or Belarusian products beyond Column 2 rates until Jan. 1, 2024; it also gives the president the authority to restore permanent normal trade relations with Russia and Belarus if Russia has withdrawn its troops from Ukraine and has ceased military hostilities in Ukraine, and Ukraine accepts the terms of that withdrawal and ceasefire; if Russia "poses no immediate military threat of aggression" to any NATO member and if Russia and Belarus recognize "the right of the people of Ukraine to independently and freely choose their own government."

Belarus hasn't invaded Ukraine, but its territory is used by Russia in its invasion.

Restoring normal trade relations would be done after consultation with Congress, and Congress could overrule the decision through a disapproval vote. "As Russia continues its horrific, unprovoked war on the Ukrainian people, the House is moving to inflict even greater economic pain on Russia and Belarus," Neal said.

Ways and Means ranking member Kevin Brady, R-Texas, in a floor speech before the vote, said, "Combined with the energy import ban Congress passed last week -- which targets 60% of what Russia sells us -- this provision targets the remaining 40%, hurting Russia’s economy and cutting off funding for its war effort."

Senate Finance Committee Chairman Ron Wyden, D-Ore., put out a statement that said, “It is past time to cut off Vladimir Putin’s regime from the benefits of the global trade system. This bill sends the message that Russia’s brutal invasion of Ukraine, and its army’s indiscriminate killing of civilians, will be met with the harshest economic measures seen in a generation. I support the bipartisan bill introduced today in the House, and urge its unanimous passage in the Senate, as soon as possible.”

Finance's top Republican, Sen. Mike Crapo, R-Idaho, said after the House vote: "Ukrainian President Zelenskyy implored Congress for ‘new packages of sanctions … until the Russian military machine stops.’ Congress must support him and the Ukrainian people by immediately passing legislation to impose a Russian energy importation ban and revoking Russia and Belarus’s favorable trading status."

One of the major Russian exports to the U.S. has traditionally been fertilizer, though Russian President Vladimir Putin said last week there would be a temporary suspension of fertilizer exports. The tariff on fertilizer is zero even in Column 2, but Bloomberg reported that USDA Secretary Tom Vilsack suggested it could be subject to a tariff hike. "Maybe sacrifices are necessary to address the unjustified war that Russia has chosen to start,” he said at an event.