Move by Congress to revoke Russia’s trade status hits snag

Legislation to revoke normal trade relations with Russia hit a stumbling block in the U.S. House over the procedures for potentially reestablishing the relationship in the future.

Republicans and Democrats are at odds over how much power President Joe Biden should have to re-instate Russia’s “most-favored-nation” trade status and what Russia would have to do to regain that standing, according to lawmakers involved in the talks.

Biden last week announced the U.S., along with other G-7 and European Union countries, would revoke the status in response to the invasion of Ukraine, putting Russia in the same category as other pariah states including North Korea and Cuba. Doing so in the U.S. requires legislation. But what had been anticipated to be a quick response by Congress has been set back by disagreements over details.

House Majority Leader Steny Hoyer said Wednesday that he remained hopeful that the legislation could still be finished this week and acknowledged the hold-ups in the talks.

Removal of the status will enable the United States to impose higher tariffs on Russian goods, and other actions. Complicating the talks is that this could also adversely affect the U.S. economy.

Lawmakers are still discussing the parameters for what Russia would need to do for the U.S. to consider restoring normal trade relations and how much say the White House and Congress would each have in determining if Russia has met those requirements, according to a lawmaker involved in the talks. Negotiators are also discussing how soon after Russia meets those requirements the U.S. could begin the process to re-establish the relationship, according to the lawmaker who requested anonymity.

Representative Kevin Brady of Texas, the top Republican on the House Ways and Means Committee, said he is advocating to keep a measure that was part of an earlier version of the bill that would allow Congress to disapprove resuming normal trade if Biden wanted to re-open that relationship. Brady said that the White House and Democrats want the bill to provide more flexibility for the president to act unilaterally.

“So since this is a legislative change, the disapproval resolution is important to keep Congress’s role in the decision on when to you know, restore those permanent normal trade relations correctly,” he said.

Senate leaders have not yet committed to advancing the bill if it passes the House.