The Jackson-Vanik Amendment: A Survey

Publication Date: August 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Trade

Type:

Abstract:

The enactment of the so-called Jackson-Vanik amendment as part of the Trade Act of 1974 was directly a U.S. reaction to the severe restrictions the Soviet Union had placed in late 1972 on the emigration of its citizens, but was expanded in its scope to apply to all so-called “nonmarket economy” (NME) countries. The amendment, in effect, requires compliance with its specific free-emigration criteria as a key condition for the restoration of certain benefits theretofore denied to NME countries in their economic relations with the United States. These benefits — access to nondiscriminatory (most-favored-nation; normal-trade-relations) treatment in trade; access to U.S. government financial facilities; ability to conclude a trade agreement with the United States) — may be extended to an NME country subject to the amendment only if the President determines that the country is not in violation of (i.e., is in full compliance with) the free-emigration criteria of the amendment, or if he waives, under specified conditions, the requirement of full compliance with the criteria. Such determinations or waivers must be renewed periodically.

Congressional involvement in the implementation of the provision is limited. The initial application, periodic renewals, or subsequent changes (other than termination) of the requirements of either type of compliance with the Jackson-Vanik amendment freedom-of-emigration requirements take place, under existing legislation, by Executive action. Such action does not require congressional approval; however, Congress may disapprove an initial determination of “no violation” and, annually, its extension, as well as annual extensions of a waiver, at the time of such renewals, by the enactment of joint resolutions of disapproval, for which a special fast-track procedure is provided. Although frequently initiated in the past, congressional attempts to disapprove waiver renewals have invariably been unsuccessful. Action disapproving an initial “no violation” determination or its renewal has never been attempted. Under these provisions, since 1975 waivers have been granted to 25 countries, most of which have been subsequently determined to be in full compliance, but still subject to the amendment. The application of the amendment to several of these has later, by law or other circumstance, been terminated.

In consequence, there are, at present, still 12 countries subject to the amendment, three of which (Belarus, Turkmenistan, and Vietnam) are under the waiver provision and seven (Azerbaijan, Kazakhstan, Moldova, Russia, Tajikistan, Ukraine, and Uzbekistan) under a determination of “no violation”; two countries (Cuba and North Korea) are still not in either form of compliance (and, hence, continue to be denied the benefits contingent on such compliance).

There are several possible actions in which the Congress can become involved legislatively with respect to the application of the Jackson-Vanik amendment: adoption of a joint resolution disapproving a relevant Executive action (renewal of a waiver, or a determination of “no-violation” or its renewal), specific termination of the application of the Amendment to one or more countries, mostly by terminating the application of the Amendment as part of the legislation authorizing the extension of permanent NTR treatment to a country, and repeal of the Amendment.