Congress Passes Bill Ending PNTR for Russia and Belarus, Codifies Russian Oil Ban

Congress passed a bill that will end permanent normal trade relations status for Russian and Belarusian goods, with a unanimous vote in the Senate and a 420-3 vote in the House. It also codified the already accomplished ban on Russian fossil fuels, unanimously in the Senate and 413-9 in the House.

The bill gives the administration the power to hike tariffs on Russian goods past the Column 2 levels, which House Ways and Means Committee Chairman Rep. Richard Neal, D-Mass., called "the next chapter," after the vote. Neal said in a hallway interview at the Capitol that "I am thrilled! I wish it could have happened faster, but the fact that it did is of great merit."

Ways and Means ranking member Kevin Brady, R-Texas, said the delays getting a vote in the Senate were frustrating, but in the end, he's pleased with the overwhelming support in Congress for both bills. International Trade Today asked how long it might take for the administration to announce higher tariffs on Russian goods that are not already banned from import. "Hopefully, there's been time for the administration to sort of assess" which goods should have higher tariffs than they face under Column 2, including hearing feedback from businesses, he replied, during a hallway interview at the Capitol after the vote April 7. "Really tailor it to the greatest pain on Russia and the least on the U.S., and hopefully [announce those tariffs] very soon." A spokesman for the Office of the U.S. Trade Representative didn't respond to questions.

Platinum and related metals, one of the most significant exports from Russia that has not yet been banned, does not face any duty, even under Column 2. However, a number of forms of uranium, another significant export, do face a 50% tariff under Column 2, up from 10%. Pig iron, another significant Russian export, will face a $1.11/ton duty once the bill becomes law.

Nitrogen fertilizers and inputs to make nitrogen fertilizer also are duty free under Column 2. Phosphate fertilizer from Russia is already subject to countervailing duties ranging from 9.19%, 17.2% to 47.05%, depending on the producer (see 2104060023), but it has no additional duty under Column 2.

Farmers have already been complaining they are being hurt by the trade remedies, and asking for the tariffs to be lifted.

Rep. Tom Malinowski, D-N.J., a leader on human rights in the House, said that while he's all for getting PNTR and the oil ban into law, he doesn't expect it to be economically significant.

"It's good that we're doing it. It's good that we're doing the oil ban," he said. "But the effects of both of these pieces of legislation have already been felt in the real world, so this is Congress sending a message, following through on a commitment, but it's not going to achieve much that we haven't already achieved by the president's executive actions and the other sanctions that Congress has encouraged and supported."