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1 1 (May 30, 2017)

handle is hein.crs/govccys0001 and id is 1 raw text is: FF. ' riE S-' $. h ,i , Updated May 30, 2017 Kazakhstan and Tajikistan: WTO Accession and U.S. Trade Relations On November 30, 2016, Kazakhstan acceded to the World Trade Organization (WTO). Kazakhstan's WTO commitments include binding tariffs at an average of 6.1% and adopting all WTO rules and agreements. Tajikistan, another eastern-bloc country, became a WTO member in 2013. WTO rules require that all members extend nondiscriminatory, most-favored-nation (MFN) tariff treatment immediately and unconditionally to other WTO members. The United States currently grants Kazakhstan and Tajikistan temporary IFN (in U.S. law called normal trade relations or NTR) status under Title IV of the Trade Act of 1974, the so-called Jackson-Vanik amendment. Congress will need to enact legislation to provide Kazakhstan and Tajikistan permanent NTR (PNTR) treatment if the United States is to benefit fully from the terms of its WTO membership, including enjoying Kazakhstan's tariff concessions and engaging in WTO dispute settlement procedures with Kazakhstan. Other eastern-bloc WTO members that have United States PNTR status are Albania, Armenia, Bulgaria, Georgia, Kyrgyzstan, Moldova, Mongolia, Russia, and Ukraine. Besides Kazakhstan and Tajikistan, Title IV still applies to Azerbaijan, Belarus, Cuba, North Korea, Turkmenistan, and Uzbekistan. How does a prospective member join the WTO? Any state or customs territory that has full autonomy over its trade policies may join (accede to) the WTO by agreeing to its terms. This includes, first, agreeing to the body of rules and agreements that comprise the WTO. Second, a prospective member must satisfy specific market access conditions of other WTO members on an individual basis, which involves engaging in a series of bilateral negotiations. These bilaterally negotiated commitments are then extended to all members based on the WTO's MFN principle. Third, a WTO working party drafts the candidate member's protocol package along with a report on the actions the country will take to bring its trade regime into conformity with WTO obligations. This package is presented to the entire WTO membership for approval. Membership requires a two-thirds majority vote of all WTO members. In many cases, as with Kazakhstan, the prospective member's own parliament or legislature must ratify the agreement before membership is effective. How long has Kazakhstan been engaged in the accession process? Kazakhstan has undergone an almost 20-year accession process-the longest of any WTO member. The country submitted an application in January 1996, a year after the WTO was founded. In recent years, the delay was attributed to the formation of the Eurasian Economic Union (EAEU), a customs union with Russia and Belarus, and the need to harmonize the tariffs and customs laws of the EAEU countries. In approving Kazakhstan's accession protocol we are concluding almost two decades of negotiations. Moreover, we are delivering a result which will have a major economic impact, a major systemic impact, and a major human impact. Because, crucially, the benefits of accession can help to create jobs, raise incomes, and improve people's lives. WTO Director-General Roberto Azevdo R,, e l , h . .. . .. i p The United States currently grants Kazakhstan and Tajikistan temporary NTR status under Title IV of the Trade Act of 1974, the so-called Jackson-Vanik amendment. PNTR status may only be granted to Kazakhstan and Tajikistan if Congress approves it through legislation. What is the Jackson-Vanik Amendment? Congress enacted the so-called Jackson-Vanik Amendment (Title IV of the Trade Act of 1974) to respond to strict emigration policies implemented in the 1970s by the Soviet Union and other communist countries during the Cold War. Title IV requires the President to deny PNTR (i.e., MFN) status to any country to which the United States did not provide this treatment on the date of enactment (January 3, 1975). At the time, this included the Soviet Union, China, and other communist-led regimes. Congress has since passed legislation to grant PNTR to several of these countries. Russia was the latest country to receive PNTR status in December 2012 (P.L. 112-208). Title IV denies PNTR status if a country: (1) denies its citizens the right or opportunity to emigrate; (2) imposes more than a nominal tax on emigration documents, visas, or other paperwork necessary for emigration; or (3) imposes more than a small tax or fine because a citizen wants to emigrate. Title IV prohibitions also extend to participation in any US government program of credits, credit, or investment guarantees. Before a country can receive temporary trade status, the country must have concluded a bilateral trade agreement (BTA) with the United States that provides for, .O 'T p\w gmwn ggmm mppm qq\ a , q 'S I 11LULANJILiN,

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