Text of "Partnership for Economic Progress"

WASHINGTON (Reuter) -- Following is the text of a joint U.S.-Russian
statement on a "Partnership for Economic Progress." The statement was signed
by President Clinton and Russian President Boris Yeltsin at a news conference
Wednesday near the end of their two-day summit.


The United States of America and the Russian Federation, Believing that
strong economic ties and cooperation can contribute significantly to the
building of strong, friendly relations and acceleration of the development of
free markets, economic growth and job creation in both countries, 

Based on continuing progress by the Russian Federation in steps to create a
market economy and a more open commercial and investment environment,
including the necessary legal and financial conditions, 

Desiring to build a strategic economic partnership between the two countries
and accelerate and give vibrancy to the efforts of their private and
commercial sectors to develop commercial projects on the basis of trade,
joint ventures, and foreign direct investment, 

Noting the positive trends and developments in the legal, commercial, and
financial frameworks for bilateral trade, economic cooperation and
investment, 

Positively assessing steps by the Russian Federation in creating a market
economy, and by the United States of America in extending technical
assistance to support, on a bilateral and multilateral basis, market reforms
in the Russian Federation and the development of bilateral commercial
relations, 

Noting the complementarity of the American and Russian economies for the
development of key economic sectors and the significant potential for
development of mutually beneficial commercial ventures between the two
countries, 

Reaffirming their commitment to the purposes and principles of the Charter
for American-Russian Partnership and Friendship of June 17, 1992, and the
principles of the Vancouver (April 1993) and Moscow (January 1994)
Declarations by the presidents of both countries, 

Noting the important role of the joint Commission for Economic and
Technological Cooperation in creating the conditions for strengthening
U.S.-Russian economic cooperation, 

Have adopted the following Principles and Objectives for the development of
trade, economic cooperation and investment relations: 

TRADE

The United States of America and the Russian Federation seek to establish a
normal trade relationship as quickly as feasible, to support a rapid increase
in bilateral commerce. Great value is placed on the Agreement on Trade
Relations in force between the United States of America and the Russian
Federation and both countries are committed to carry out fully the provisions
of this Agreement. 

The United States recognizes the significance of the removal of Russia from
application of the provisions of Title IV of the U.S. Trade Act of 1974 (the
Jackson-Vanik Amendment). The U.S. Administration has made a positive
determination that Russia is in full compliance with Title IV criteria and
will consult with the U.S. Congress at an early date concerning legislation
to remove Russia from application of Title IV. 

Both countries welcome the work of the U.S.-Russia Joint Commission for
Economic and Technological Cooperation and its various bilateral committees,
including the U.S.-Russia Intergovernmental Business Development Committee to
contribute to the expansion of bilateral trade and investment and will
utilize the Business Development Committee as a means for frequent
consultation on the means of improving the environment for commercial growth.
Each side will use its best efforts to implement measures supporting trade
expansion and to remove obstacles to trade development. 

The United States and Russia note that as of September 30, 1993, the United
States has extended to qualifying Russian exports eligibility for duty-free
entrance into the United States under the U.S. Generalized System of
Preferences program covering 4,400 products, and that during 1994 U.S.
technical experts will provide information to Russian officials and
entrepreneurs on effective utilization of the GSP program. 

The United States expects to extend the benefits of the GSP program to Russia
for solong as its program authority and Russian eligibility under authorizing
legislation permit. Russia will review the possibility of removing certain
tariff barriers impeding development of trade. 

Both countries will facilitate trade and investment expansion through the
dissemination of reliable and comprehensive economic data, transparent and
stable commercial laws and regulations, and active promotion of business
contacts and facilitating access to commercial market information. Noting the
provisions of the U.S.-Russia Agrement on Trade Relations concerning
transparency of new laws and regulations, the United States believes it would
be useful if Russia adopted procedures for public comment on proposed changes
to commercial laws and regulations, as well as advance notification and
publication of proposed changes. Until such procedures are in place, both
countries through the Business Development Committee will facilitate the
timely exchange of information on legislation and regulations as they are
adopted. 

MARKET ACCESS

Each country desires to provide liberal access to its market for the other's
goods and services. They are committed to avoid trade frictions and
facilitate access consistent with fair trade practices and their respective
trade laws. 

The U.S.-Russia Business Development Committee is an important forum for
discussions of current and potential market access issues and for the
development of recommended policies and regulations which would support
expanded trade and investment. 

Recognizing that Russia is an economy in transition to a free market, the
United States will give priority attention to the special market access
problems Russia faces as it continues its economic transition. The U.S.
Administration will consult with the U.S. Congress on this subject. 

Market access issues will be addressed from a broader bilateral perspective
through the Business Development Committee's Market Access Working Group.
This group will consider initiatives designed to reduce barriers to mutual
market access, taking into account the unique problems Russia faces as an
economy in transition. 

The United States and Russia will immediately work to address Russia's
concerns with U.S. antidumping laws, beginning with procedures to disseminate
information designed to prevent unfair trade and procedures designed to
facilitate participation in antidumping proceedings if unfair trade occurs.
They agree to discuss changing market trends resulting from Russia's
transition to a market economy and integration into the global trading
system. 

Both countries recognize that tariff-reducing measures, consistent with
GATT/WTO principles, will provide an important stimulus to bilateral trade
and investment. They also intend to review and seek prompt removal of
technical barriers to trade through both bilateral cooperation and unilateral
measures. The reduction of such tariff and technical barriers to trade will
lead to increased investment and promote the development and growth of
economically healthy, globally competitive domestic industries. 

Both countries consider cooperation in international standardization and
openess of conformity assessment indispensable to eliminating or avoiding the
creation of technical barriers to trade and intend to proceed vigorously with
the program of work agreed upon in the Joint Communique on Cooperation in
Conformity Assessment issued in Moscow on December 16, 1993, at the
conclusion of the meetings of the Joint Commission for Economic and
Technological Cooperation led by Vice President Albert Gore and Prime
Minister Victor Chernomyrdin. They consider progress in product
certification, testing and quality assurance to be of priority for
telecommunications equipment, drugs, pharmaceuticals and medical devices. 

The United States looks forward to the implementation by Russia of a trade
regime that would speed its accession to the GATT/WTO and open the way to
application of GATT/WTO principles in their bilateral trade. The United
States supports Russia's accession to the GATT/WTO and expresses its
readiness to extend appropriate technical assistance and to consult
concerning the process of accession. 

Intellectual Property Rights: The United States and Russia look forward to
continued cooperation under the working group on intellectual property
matters, established by the Agreement on Trade Relations between the United
States of America and the Russian Federation. 

The United States recognizes Russia's considerable progress in enacting
intellectual property rights legislation. 

Both sides consider effective enforcement of those laws to be important. In
particular, the United States considers protection for pharmaceuticals,
computer software, sound recordings, books, and integrated circuit layout
designs to be of primary importance. The U.S. side looks forward to Russia's
rapid accession to the Berne Convention on the Protection of Literary and
Artistic Works. 

Closer Economic Cooperation and Commercial Partnership: The two countries
share the view that their two economies are complementary in many ways and
that the extent of economic cooperation currently existing between the two is
only a small fraction of its potential. They agree that the two economies
could benefit strongly from the elimination of trade and commercial barriers
between them. 

The United States and Russia concur that Russia must take additional
market-oriented steps for trade and commercial cooperation to reach its
potential. Both agree that closer economic cooperation will have a beneficial
effect on bolstering the continued market transformation of Russia's economy.


The elimination of barriers to trade and investment and increased commercial
cooperation will emphasize the totally changed nature of the relationship
between the two countries to one of strategic economic partnership. 

In this context, the United States and Russia at an appropriate time could
consider future arrangements to enhance their bilateral economic
relationship. They also will work through the Business Development Committee
forum to identify measures for achieving closer commercial integration. 

INVESTMENT AND FINANCE

The two sides note favorably the June 1992 Treaty on the Encouragement and
Reciprocal Protection of Investment that has been signed by the heads of both
States and that has been approved by the U.S. Senate. They agree that
ratification by the Russian Federation Federal Assembly and its prompt entry
into force is a critical goal to be achieved in improving the Russian
investment environment for American companies. 

They also agree that the steps taken by Russia pursuant to President
Yeltsin's Decree 1466 of September 27, 1993 form the basis for moving forward
with administrative and legislative actions to further improve the investment
climate in Russia. They share the opinion that bilateral discussions that
include the business communities of both countries will be the most rapid way
of identifying the precise actions that are needed. 

Support for reform: The United States reaffirms its support for Russia's
efforts to establish a market economy and offers continuing active assistance
to the process of reform. 

In particular, the United States welcomes Russia's intention to establish new
incentives, consistent with international standards and agreements including
the GATT/WTO, to attract foreign direct investment, to continue its highly
successful privatization program, to take additional steps to liberalize the
economy and foreign trade by freeing prices and opening up its markets to the
world at large, and to enforce the right of private land ownership. 

Russia acknowledges and welcomes the support of the United States for its
reform efforts and will continue to cooperate closely to identify ways in
which the two nations can work together to expedite Russia's transformation
into a market system. 

Russia is committed to a continuous process of market reform. The United
States and Russia recognize that trade and investment activities between the
two countries, based on private sector commerce, will provide the foundations
for sustained growth now and in the future. Such trade and investment
activities will help both nations acquire new technology and know-how and the
resulting capital flows will be an important source of financing for both
nations that will support reform, create new jobs and improve the quality of
life in both countries. 

The United States and Russia agree that the development of a climate
hospitable toward foreign direct investment could result in tens of billions
of dollars of new direct investment in Russia, and could generate a much
closer commercial relationship between the business communities of both
countries. The United States and Russia will work through the Business
Development Coimmittee to identify and eliminate barriers to investment,
including sector-specific issues. 

"Commercial Partnership Program": The United States and Russia undertake to
establish a "Commercial Partnership Program" to enhance existing bilateral
and multilateral agreements by providing detailed guidelines and milestones
based on the principles outlined in this document for achieving closer
commercial cooperation. The Commercial Partnership Program will be developed
in several stages, based on continuing progress in political and economic
reforms by Russia and in the flow of commerce between the two nations. Each
stage will involve implementation and expansion of specific programs to
encourage company-to-company cooperation and expanded trade and investment.
The Business Development Committee will coordinate the identification and
implementation of sepcific steps toward this goal. 

Industry Cooperation: The two countries believe that private sector efforts
are vital to the success of Russia's creation of a market economy. Industry
cooperation in key sectors will provide the necessary capital and business
expertise to support economic development. Economic competition generated
through private sector cooperation will benefit both countries by improving
product quality and manufacturing efficiency and by creating jobs. 

The United States and Russia agree that investment and trade in the oil and
gas sector provide Russia with an opportunity to attract U.S. capital and
technology on a vast scale, far beyond resources available from foreign
assistance. They understand the desirability of taking earliest possible
steps in Russia to attract foreign capital and to provide an attractive
investment climate, including realization of production sharing agreements,
stable and reasonable tax and export regimes, and equal and predictable
access to pipelines, in line with the European Energy Charter Treaty. 

The United States and Russia declare that investment and trade in other
industry sectors, as well, are essential to overall economic development.
Agribusiness and food processing, aerospace, mining, medical devices and
pharmaceuticals, telecommunications, transportation, environmental equipment,
housing and defense conversion are priority sectors for cooperation. Both
countries will consider appropriate measures for supporting joint ventures in
designated sectors. 

REUTER