President Obama Signs Law to Establish PNTR with Russia

USTR Kirk on the Signing of PNTR for Russia

U.S. Trade Representative Ron Kirk today hailed the signing by President Obama of H.R. 6156, the Russia and Moldova Jackson-Vanik Repeal and Sergei Magnitsky Rule of Law and Accountability Act of 2012, which authorizes the establishment of Permanent Normal Trade Relations (PNTR) with Russia and Moldova. This step will allow the United States to apply the World Trade Organization (WTO) agreement to Russia, offering new, job-supporting trade opportunities for U.S. businesses and workers and allowing the United States to address trade disputes with Russia in the WTO system, if necessary.

“The United States strongly supported Russia’s accession to the WTO, because it is in the interest of our exporters and the Americans they employ to bring Russia more fully into the global trading system,” said Ambassador Kirk. “With the signing of this legislation, American businesses and workers are closer to enjoying the full economic benefits of Russia’s WTO commitments.”

Ambassador Kirk, Acting Commerce Secretary Rebecca Blank, members of Congress, and others joined the President at a signing ceremony at the White House today.

Backgroud (from USTR web site)
On August 22, 2012, Russia became the 156th Member of the World Trade Organization (WTO). On November 16 the House of Representatives passed legislation, by a 365-43 vote, authorizing the President to end the application of Jackson-Vanik and extend Permanent Normal Trade Relations to Russia and Moldova. On December 6, the Senate, by a 92 to 4 vote, approved identical legislation. This legislation paves the way for the United States and Russia to apply the WTO Agreement between them. Russia’s membership in the WTO will benefit U.S. businesses and workers by improving market access for U.S. exports of goods and services and bringing Russia into a system of established, enforceable, multilateral trade rules.

Looking to build on Russia’s WTO membership, the Administration is working to expand the bilateral economic relationship with Russia. At their June meeting at the G-20 in Los Cabos, Presidents Obama and Putin agreed that the United States and Russia could do more to meet their potential as economic partners. USTR, in concert with the inter-agency, is therefore looking at concrete steps that will improve the conditions for bilateral trade and investment.

U.S.-Russia Trade Facts
Russia is currently our 20th largest goods trading partner with $42.9 billion in total (two way) goods trade during 2011. Goods exports totaled $8.3 billion; Goods imports totaled $34.6 billion. The U.S. goods trade deficit with Russia was $26.3 billion in 2011.

Exports
Russia was the United States 31st largest goods export market in 2011.
U.S. goods exports to Russia in 2011 were $8.3 billion, up 37.9% ($2.3 billion) from 2010.
The top export categories (2-digit HS) in 2011 were: Machinery ($2.2 billion), Vehicles ($1.1 billion), Aircraft ($741 million), Meat (poultry and pork) ($697 million), and Optic and Medical Instruments ($548 million).
U.S. exports of agricultural products to Russia totaled $1.2 billion in 2011 the 19th largest U.S. Ag export market. Leading categories include: red meats, fresh/chilled/frozen ($452 million), and poultry meat ($250 million).

Imports
Russia was the United States 14th largest supplier of goods imports in 2011.
U.S. goods imports from Russia totaled $34.6 billion in 2011, a 34.6% increase ($8.9 billion) from 2010. U.S. imports from Russia accounted for 1.6% of total U.S. imports in 2011.
The five largest import categories in 2011 were: Mineral Fuel (oil) ($25.4 billion), Iron and Steel ($1.7 billion), Precious Stones (platinum) ($1.4 billion), Inorganic Chemical (enriched uranium) ($1.4 billion), and Fertilizers ($1.1 billion).
U.S. imports of agricultural products from Russia totaled $34 million in 2011.

Trade Balance
The U.S. goods trade deficit with Russia was $26.3 billion in 2011, a 33.5% increase ($6.6 billion) over 2010.

Investment
U.S. foreign direct investment (FDI) in Russia (stock) was $9.9 billion in 2010 (latest data available), a 50.5% decrease from 2009.
Reported U.S. FDI in Russia is led by the manufacturing, banking, and mining sectors.
Russia FDI in the United States (stock) was $4.4 billion in 2010 (latest data available), down 44.6% from 2009.
The distribution of Russia FDI in the United States is not available for 2009.