Already, the U.S. has taken steps to stop imports of Russian oil, liquefied petroleum gas, seafood, alcohol, and diamonds. Voting on Thursday will make it more costly to import steel, aluminum, and plywood products, among other goods.
The House voted 424-8. For final passage, the Senate is expected soon to vote on the measure.
This broad trade action would remove Russia’s “most preferred nation” status. It is being coordinated with the European Union, Group of Seven and other countries. After President Volodymyr Zeleskyy of Ukraine pleaded with Congress to do more to stop Russia, the House vote was taken.
Zelenskyy stated in a video address to Congress that he asked for a guarantee that Russians don’t receive one penny to use to devastate people in Ukraine.
Reps. Richard Neal (D-Mass.) and Kevin Brady (R-Texas), introduced the trade bill in a joint statement. They stated that Zelenskyy’s comments “only strengthened our resolve” to further isolate and weaken Russian President Vladimir Putin.
The two lawmakers stated that they must do everything possible to hold Putin responsible for causing the senseless attack on the Ukrainian people and undermining the global stability. “The suspension or normalization of trade relations is an important part of our efforts to restore peace, save lives, and defend democracy.”
According to World Trade Organization rules, each member must provide the lowest tariff rates to all WTO partners. Russia joined the WTO 2012, and Congress unanimously approved legislation in that year granting the president the power to extend normal trade relations with Russia. However, countries can make exceptions to safeguard their security interests.
The revocation would still be symbolic. Although the earlier sanctions against Russian oil, gas, and coal imports had already reduced US imports by about 60%, certain sectors of the economy may feel the effects.
Senator Majority Leader Chuck Schumer (D-N.Y.) stated, “To date both parties, Democrat, and Republican, remain united to send Putin a clear signal: His inhumane violence towards the Ukrainian people will be at a crippling cost.”
Imports are less competitive due to tariffs, which increase their costs for U.S. businesses. Timothy Brightbill is a Wiley Rein LLP partner who focuses his practice on international trade law. He said that the impact on American consumers should not be significant in all sectors, as companies have the ability to turn to other suppliers. He stated that it is important that U.S. supply chains do not run through Russia and that Americans understand this.
Brightbill stated that most American consumers would gladly pay more for products and raw materials that don’t support Russia or the Russian government.
He stated that China would be sent a clear signal by revoking Russia’s trade status that it will not tolerate any hostile actions against Taiwan.
Eight Republicans voted against House measure. However, speakers from both sides pushed for its passage during debate. The earlier version was introduced by Democratic Reps. Lloyd Doggett (D-Texas) and Earl Blumenauer (D-Ore.).
Nancy Pelosi, House Speaker, stated that Putin’s actions in Ukraine, including bombing civilians and targeting children, are not within the normal circle of civilized human behavior. He is guilty of war crimes and must be held responsible.”
Rep. Victoria Spartz (R-Ind.), who was born in Ukraine, stated that the bill sends a message “to Putin and his allies” that “the West takes it seriously.”
Spartz stated that “they cannot just kill a bunch people, destroy cities and kill women and kids and then go back to business as usual.”
