Mosbacher Sees ‘Most-Favored’ Trade for Soviet

Commerce Secretary Robert A. Mosbacher said today the expected quick easing of Soviet emigration laws will open up the Soviet Union for most-favored-nation trade status with the United States within one to three months.

Mosbacher commented in a television interview as the Soviet Embassy called a news conference to discuss “new Soviet legislation involving entry and exit visas for its citizens.”

“I think that we’re going to see them moving quickly to pass this emigration bill and then that will open it up for the most-favored-nation treatment, which will lower tariffs,” Mosbacher said on NBC’s “Today” show. “And it will make it easier for the Soviets to sell to us.”

Asked when the Soviets might get the more advantageous trade status, Mosbacher said: “I would guess it would be within the next one to three months.”

A draft law lifting most travel restrictions on Soviets passed its first legislative hurdle Monday in Moscow. The bill allows emigration for virtually anyone who has entry permission from another country and no outstanding alimony obligations, criminal charges or recent knowledge of state secrets.

It was given preliminary approval by the Supreme Soviet legislature and formalizes many changes that have already been put into practice in Soviet emigration and travel policy.

Mosbacher said “unfortunately for them,” the Soviets do not have much that the United States wants to buy, mentioning “petroleum and vodka and caviar and not much else.”

“The Soviets desperately need Western currency, hard currency,” he said. “They also realize in the long term the only way they’re going to get this is investments (by) U.S. and other companies over there. What they want is U.S. companies to come over, make investments.”

On Oct. 26, President Bush extended most-favored-nation status to Hungary, making it the first country to be freed from a 1974 law denying U.S. trade credits to most communist nations.

The action gives the recipient nation full access to U.S. markets and the lowest possible tariff rates, putting it on an equal footing with major U.S. trading partners.

The law requires an annual report to Congress from the President on the emigration policies of each nation covered under the restriction, and an assessment of whether there has been progress toward unrestricted emigration.