Permanent Normal Trade Relations (PNTR) Status for Ukraine and U.S.-Ukrainian Economic Ties Page: 1 of 6
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Order Code RS22114
Updated March 30, 2006
CR8 Report for Congress
Received through the CRS Web
Permanent Normal Trade Relations (PNTR)
Status for Ukraine and U.S.-Ukrainian
William H. Cooper
Specialist in International Trade and Finance
Foreign Affairs, Defense, and Trade Division
The 109th Congress passed legislation to grant Ukraine permanent normal trade
relations (PNTR), that is nondiscriminatory, trade status. The importance of the issue
had been elevated since the "Orange Revolution" in Ukraine that led to the election of
Viktor Yushchenko as President of Ukraine. The issue before Congress was whether
to remove the requirements of Title IV of the Trade Act of 1974, including the so-called
Jackson-Vanik amendment, and authorize the President to extend unconditional
nondiscriminatory treatment to trade with Ukraine. On March 8, 2006, the House
passed (417-2) H.R. 1053, and the Senate passed (unanimous consent) it on March 9,
2006. President Bush signed it (P.L. 109-205) on March 23, 2006. This report will be
updated as events warrant.
Permanent normal trade relations (PNTR) status has been an issue in U.S.-Ukrainian
relations since the country obtained its full sovereignty with the collapse of the Soviet
Union in December 1991. Legislation to grant PNTR to Ukraine had been introduced in
previous Congresses but received no further action as critics raised concerns about some
Ukrainian trade practices, among other issues. Recently, the significance of the issue has
been elevated in the wake of the "Orange Revolution" in Ukraine that led to the election
of President Viktor Yushchenko at the end of 2004. At his April 4, 2005, Washington
summit meeting with President Yushchenko, President Bush pledged to work towards
securing PNTR for Ukraine. In his April 6, 2005 address to a joint meeting of the U.S.
Congress, President Yushchenko urged Members of Congress to grant Ukraine PNTR.
While ostensibly a trade issue, granting PNTR is seen by many as also a foreign
policy instrument to convey U.S. support for a democratically-elected leader who has
indicated his intention to strengthen ties with the United States and Western Europe and
reduce dependence on Russia. Yushchenko has made PNTR a top priority in U.S.-
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Permanent Normal Trade Relations (PNTR) Status for Ukraine and U.S.-Ukrainian Economic Ties, report, March 30, 2006; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc815846/m1/1/: accessed November 24, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.