Treasury official presses for passage of Russia trade bill

The Obama administration renewed calls on Monday for Congress to pass legislation setting up normal trade relations with Russia. 

Lael Brainard, Treasury Department's under secretary for International Affairs, who is headed to Moscow this week for trade talks, highlighted the United States' effort in helping Russia complete the accession process to the World Trade Organization. 

"We very much welcome this and look forward to working with congressional leaders to pass legislation when they come back so businesses can fully participate in new export opportunities," she told reporters Monday. 

Brainard is headed to Moscow on Wednesday for meetings with regional finance ministers as part of the Asia-Pacific Economic Cooperation (APEC) summit ahead of the leaders meetings, which will include Secretary of State Hillary Clinton in early September in Vladivostok. President Obama won't attend this year because of the November election. 

Russia joined the WTO on Aug. 22, but Congress failed to repeal the 1974 Jackson-Vanik provision, a U.S. law aimed at encouraging the emigration of Russian Jews with the threat of higher tariffs, that would allow for permanent normal trade relations between the two nations. 

Brainard also expects discussions to continue with her Russia counterparts on sanctions issues for Iran and Syria saying "we think it's very important to move forward and see more cooperation with Russia in this critical area."

The meetings also are expected to examine Europe's financial troubles, including the region's financial institutions working together to provide enough support, including reasonably priced access to credit, to struggling economies making difficult reforms, Brainard said. 

She said the growing economies in the Asia-Pacific region will play a role in the global economic recovery and there will be an "intense focus" on responding to the financial situation in Europe.

"Many APEC economies retain substantial policy space to boost economic demand," she said. "They can mobilize policies to produce greater domestic consumption."

While China continues to make strides toward re-balancing its economy toward more domestic consumption, Brainard said U.S. officials are still pressing for a faster pace of appreciating currency including "more progress on a market-orientated exchange rate" and better access to financial markets. 

She said the Chinese government also is taking steps to improve intellectual property protection and reduce the nation's indigenous innovation framework. 

"We recognize that they do face headwinds particularly from Europe," Brainard said.

She said the same goes for the nations in talks on the Trans-Pacific Partnership —  the United States, Australia, New Zealand, Chile, Peru, Singapore, Vietnam, Malaysia and Brunei — which are still aiming to complete work on the agreement this year. 

Canada and Mexico are expected to join the talks this fall. 

"The United States and its trading partners are determined to complete a broad-based, high-standard TPP agreement and one that can serve as an important engine for economic expansion in the region," Brainard said.

The next meetings on that agreement are next month in Leesburg, Va.