Posts Tagged ‘Permanent Normal Trade Relations’

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Reaching Out to U.S. Businesses to Do Business in Russia

June 10, 2013

Joe Wereszynski is an International Trade Specialist in the International Trade Administration’s Office of Russia, Ukraine and Eurasia. 

DAS Murray, Jim Ross CEO of Ross Laboratories, and Karen Taylor Seattle USEAC look at Ross Lab’s innovative marine technology while discussing market access opportunities.

Jim Ross of Ross Laboratories (center) demonstrates  some of Ross Labs’ marine technology for Karen Taylor of the Seattle Export Assistance Center and Deputy Assistant Secretary for Europe Matt Murray during a discussion of market access opportunities.

As we discussed last week, we at the International Trade Administration’s (ITA) Office of Russia, Ukraine and Eurasia have been working hard to tell American businesses about doing business in Russia. Since last year, we’ve held a series of webinars, visits and consultations to help businesses understand our new trade relationship.

We will also participate in this month’s International Economic Forum in St. Petersburg. This forum will have participants from around the world and one of the key focuses will be the importance of capitalizing on new opportunities.

We see the Russian market as a new opportunity for many businesses and are working hard to make sure our trade relationship stays on the right path and American businesses understand how to navigate it.

“Standards and conformity assessment barriers are the number one trade barrier by volume around the world,” says Deputy Assistant Secretary for Europe and Eurasia Matthew Murray. “We see clear value to getting ahead of these issues, identifying problems early, and making sure U.S. exporters are aware of the rights and resources at their disposal.”

Our team has given presentations on our evolving trade relationship with Russia, and how ITA can help businesses overcome trade barriers and do business with Russia.

One such presentation was in late September, on the margins of the 2012 Russian-America Pacific Partnership (RAPP) forum held in Tacoma, Washington. Mr. Murray spoke in a series of events and held one-on-one meetings with companies across the state.

Washington plays a vital state role in conducting foreign trade; it’s the 7th-largest state export volume and was the 5th largest state exporter to Russia. The state’s increase in exports to Russia from $247 million in 2010 to $445 million in 2011 directly supported over 1,400 American jobs.

During 2012 and 2013, our office helped to organize additional roundtable events with U.S. companies on the benefits of Russia’s WTO membership in eight cities including New York, Moscow and Boston. In June 2012 hosted a webinar that reached over 100 participates across the United States.

We continue to listen. If you want to learn how to do business in Russia, please contact your nearest Export Assistance Center for assistance. We look forward to helping American business sell their goods and services in Russia, taking advantage of our new trade agreement.

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U.S. Department of Commerce Reaches Out to U.S. Companies on the Benefits of Russia’s WTO Membership

May 29, 2013

Joe Wereszynski is an International Trade Specialist in the International Trade Administration’s Office of Russia, Ukraine and Eurasia. 

What better way to recognize World Trade Month than by expanding to the Russian market?

On December 14th, 2012, President Obama signed into law legislation extending Permanent Normal Trade Relations (PNTR) with Russia, establishing a promising trade future with a growing economy. We at the International Trade Administration’s (ITA) Office of Russia, Ukraine and Eurasia are working to help U.S. companies understand and take advantage of this relationship.

Our team has worked to inform U.S. industry about changes that will take place due to PNTR and Russia’s accession to the WTO. Our goal is to make sure that all U.S. businesses understand the agreement and are able to take advantage of this new trade relationship.

The U.S.-Russian Business Development and Economic Relations Working Group, which was established in 2009 by President Obama and then-Russian President Medvedev as part of the U.S.-Russian Bilateral Presidential Commission, is informing American companies of their new trading rights and business opportunities stemming from U.S.-Russian cooperation. The Working Group signed a plan that will guide and shape bilateral economic cooperation efforts between the two governments.

One specific area where work is under way is the realm of standards and conformity assessment. As tariff barriers fall, non-tariff barriers tend to rise. We’re working with interested industry groups and companies from both countries to prevent unnecessary trade barriers. Familiarizing companies and regulators with the rules-based WTO Agreement on Technical Barriers to Trade can help to increase transparency and facilitate greater trade and investment.

Later this week, we’ll meet with government and industry representatives from both countries for the U.S.-Russian Standards and Conformity Assessment Forum in Moscow. We’ll discuss how to prevent trade barriers and cooperate on standards for fair trade. More than 500 attendees have registered for the event.

We continue to reach out to U.S. companies about doing business with Russia, and I hope you’ll check back next week when we provide an update on outreach activities.

If your business is interested in exporting to Russia, the entire Department of Commerce team is ready to help. Your nearest Export Assistance Center can help you understand how to take advantage of our updated trade relationship. If you’ve run into a trade barrier with Russia or any other country, you can report it to ITA’s Trade Compliance Center.

This World Trade Month and all year long, we’d love to help you sell your goods and services in the Russian market.

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U.S. Exporters Set to Reap Benefits of Russia’s Accession to the World Trade Organization

February 7, 2013

Matthew Edwards is Director, and Christine Lucyk is Senior Policy Advisor, in the International Trade Administration’s Office of Russia, Ukraine and Eurasia.

As 2012 drew to a close, Acting Commerce Secretary Rebecca Blank joined President Obama, U.S. Trade Representative Ron Kirk, members of Congress, and representatives of the business community at the White House to mark a historic event in U.S.-Russia economic relations – the signing of legislation authorizing the President to establish Permanent Normal Trade Relations (PNTR) with Russia. Calling the legislation a “win-win for American businesses and workers,” Blank hailed the legislation as a crucial step to ensure that U.S. businesses can compete on a level playing field and enjoy in full measure the increased access to Russia’s growing market which Russia extended through its agreement to join the World Trade Organization (WTO).

These are benefits that the U.S. Government, in consultation with Congress and American manufacturers, farmers and service-providers as well as fellow with WTO members, worked hard to achieve, through intensive negotiations, and with bipartisan support by successive U.S. administrations, culminating in Russia’s accession to the WTO in August 2012.

What does this mean for the future? For context, as one of the world’s larger emerging markets, Russia has been playing a growing role in U.S. trade and investment, in particular as a market for U.S. goods. In 2012, American exports to Russia rose approximately 25 percent over 2011’s level, growing more than five times as fast as U.S. exports to the world as a whole. More exports means support for more American jobs.

U.S. exporters stand to benefit further from greater and more predictable market access, as tariffs fall in line with Russia’s commitments to reduce and bind tariffs on many industrial products. In the past, Russia was able to increase tariffs without limit. As a result of its WTO commitments, Russia’s tariffs will be bound at an average rate of about seven percent. U.S. exports in key sectors like information technology, civil aircraft, chemicals, agricultural products and many types of capital goods and equipment will see significant tariff benefits.

In the past, U.S. service providers were excluded from many sectors or faced barriers in those sectors where they were allowed to operate. Russia’s market access and national treatment commitments provide new opportunities in telecommunications, computer services, express delivery, distribution, financial services and audio-visual services.

Russia’s commitments on non-tariff measures, including obligations to abide by WTO rules on technical barriers to trade, subsidies, and sanitary and phytosanitary (SPS) measures, will limit Russia’s ability to take certain kinds of arbitrary actions, such as SPS and other measures that have restricted U.S. exports of meat and poultry, spirits, and dairy products.

Russia’s trade environment also should continue to benefit over time from commitments in the area of transparency. U.S. exporters have in the past come up against laws and regulations adopted without adequate opportunity for input from interested parties or without reliable information about regulations on trade in a given product or industry. Under the WTO, Russia is obligated to apply WTO rules on transparency, including formal establishment of notice and comment procedures for proposed measures affecting trade in goods, services and intellectual property and requirements to provide decisions in writing and new rights of appeal.

As the volume and breadth of U.S.-Russia trade grows, establishing PNTR has provided the U.S. with more tools and the leverage to hold Russia accountable for the obligations it has undertaken, and to defend U.S. economic interests in Russia’s market. In the coming months, the International Trade Administration plans to step up our outreach to advise U.S. industry of new opportunities in Russia’s market – as well as its remaining challenges. These challenges still can be considerable, as indicated in the World Bank’s most recent “Doing Business” rankings, where despite jumping eight places in the rankings, Russia placed 112th out of 185 economies surveyed.

The Commerce Department will be working under the U.S.-Russia Business Development and Economic Relations Working Group (part of the U.S.-Russia Bilateral Presidential Commission) to continue to bring U.S. business interests to the fore in discussions with our Russian counterparts on ways to further expand this growing trade relationship in ways that benefit U.S. industry and U.S. workers.

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