U.S.-Russia Trade: Opportunities for U.S. Exporters: Get the Facts!
The Russian Market Holds Long-Term Opportunities for U.S. Exporters With Russia’s GDP and disposable income levels on the rise in recent years, bilateral trade between the United States and Russia saw substantial growth before the recent global economic crisis. As the two countries recover from the crisis, Russia remains an important market for U.S. exporters.
U.S. merchandise exports to Russia totaled US$5.4 billion in 2009. This followed exports totaling US$9.3 billion in 2008, representing growth of 27% over the previous year. Before that, U.S. exports to Russia surged 56% to more than US$7.3 billion in 2007, following growth of 60% between 2004 and 2006.1
Russians’ real disposable incomes grew nearly 2% annually in 20092, after rising nearly 3% in 20083, 10% in 2006 and 2007, 9% in 2005, and 8% in 2004.4 Consequently, recent years have seen Russian consumers purchasing imported retail goods and Russian firms investing in foreign-made equipment.
U.S. Firms across Sectors are Actively Exporting to Russia Russia’s emerging market is a source of demand for a wide variety of goods imported from producers across all sectors of the U.S. economy.
Russia offers export opportunities to U.S. high-tech manufacturers. In 2009, the U.S. exported nearly US$76 million worth of automatic data processing machines to Russia, following exports of US$81 million in 2008 and more than US$117 million in 2007.5
In 2009, U.S. exports to Russia of make-up, skin-care and beauty preparations totaled nearly US$54 million, following annual growth of 57% in 2008 to a total of nearly US$88 million.6
Russia is an attractive market for U.S. nut growers. In 2009, U.S. nut exports to Russia totaled more than US$46 million (more than 11,000 metric tons), following a total of US$49 million (10,500 metric tons) in 2008.7 Almonds lead U.S. nut exports to Russia, standing at nearly US$37 million (9,500 metric tons) in 2009, after totaling nearly US$39 million (more than 8,000 metric tons) in 2008.8
Russia Is a Major Destination for U.S. Meat Exports In 2009, Russia was the largest export market for U.S. poultry9 and the 5th largest destination for U.S. pork and pork products.10 Russia has also recently reemerged as an important market for U.S. beef.
The U.S. exported more than US$762 million (nearly 738,000 metric tons) of poultry to Russia in 2009. In 2008, U.S. poultry exports to Russia totaled more than US$822 million (nearly 834,000 metric tons), a rise of 7% by value over the previous year.11
In 2009, U.S. pork exports to Russia totaled nearly US$180 million (nearly 90,000 metric tons). Although this marked a year-on-year decrease amid the economic crisis, 2008 pork exports to Russia saw annual growth of 94% by value and 70% by quantity to more than US$315 million (134,000 metric tons).12
U.S.-Russia WTO negotiations resulted in Russia reopening its market to U.S. beef, allowing beef exports to Russia to rise from low levels in 2007 to nearly US$55 million (more than 15,500 metric tons) in 2008. Beef exports to Russia totaled more than US$15 million (more than 4,200 metric tons) in 2009.13
Russia Is an Important Market for U.S.-Made Vehicles and Parts The vastness of Russia’s territory drives demand for aircraft, cars and vehicle parts, presenting export opportunities for U.S. vehicle manufacturers.
U.S. aerospace firms exported more than US$455 million worth of civilian and non-military aircraft to Russia in 2009, following a total of US$480 million in 2008. These exports grew 87% annually in 2007 to a total of nearly US$719 million.14 Although growth in aircraft exports to Russia slowed amid the global economic crisis, growth has been impressive in recent years, and future exports are likely to be driven by Russia’s need for 1,000 new airplanes over the next two decades.15
Although U.S. motor vehicle exports to Russia declined to nearly US$50 million in 2009, pre-crisis conditions saw U.S. auto exports to Russia reach nearly US$1 billion in 2008, a rise of 42% over the previous year. In quantity terms, 2008 saw annual growth of 23% to a total of 48,000 vehicles. In 2007, auto exports to Russia grew an annual 76% by value and nearly 50% by volume.16
Russia powers many of its vehicles with U.S.-made engines. Standing at more than US$27 million in 2009, U.S. exports to Russia of engines and engine parts totaled more than US$70 million each year between 2006 and 2008. In 2006, engine exports to Russia jumped 284% by value over the previous year.17
Russia Relies on Foreign Machinery to Help Extract Its Abundant Resources Russian mining and harvesting firms utilize imported equipment to extract and gather oil, gas, minerals, food, and timber and bring them to market.
The U.S. exported more than US$309 million worth of oil and gas field equipment and parts to Russia in 2009. In 2008, these exports showed annual growth of 4% to total more than US$422 million, after growing 33% in 2007 and 50% between 2004 and 2006.18
U.S. exports to Russia of agricultural tractors totaled nearly US$39 million in 2009 after growing 70% annually in 2008 to US$350 million. This followed exports of US$206 million in 2007, marking a 181% increase over 2006 exports.19
Nearly 510,000 U.S.-made chainsaws were exported to Russia in 2009, following exports of more than 1.2 million chainsaws in 2008, which represented annual growth of 31% by quantity. In 2007, chainsaw exports to Russia grew 40% over the previous year to a total of 942,000 units.20
1. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia, (All Export Categories) 2003-2009, by FAS Value.
2. “ОСНОВНЫЕ ЭКОНОМИЧЕСКИЕ И СОЦИАЛЬНЫЕ ПОКАЗАТЕЛИ,” Federal State Statistics Service Website, http://www.gks.ru/bgd/regl/b09_01/IssWWW.exe/Stg/d12/1-0.htm, (accessed March 16, 2010).
3. “Russians' Real Disposable Incomes up 2.7% on Year in 2008,” Prime-Tass English-Language Business Newswire, January 27, 2009.
4. Keith Bush, “Russian Economic Survey, April 2009,” U.S.-Russia Business Council, https://www.usrbc.org/pics/File/EconSurvey/2009/SurveyApril2009.pdf (accessed July 8, 2009).
5. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia, (HTS-8471) 2005-2009, by FAS Value.
6. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total Exports to Russia, (HTS-3304), 2005-2009, by FAS Value.
7. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia, (HTS-0802) 2005-2009, by FAS Value.
8. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia, (HTS-080211 and HTS-080212) 2005-2009, by FAS Value.
9. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to All Countries, (HTS-0207) 2005-2009, by FAS Value.
10. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to All Countries, (HTS-0203) 2005-2009, by FAS Value.
11. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia, (HTS-0207) 2005-2009, by FAS Value and by Quantity.
12. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia, (HTS-0203) 2005-2009, by FAS Value and by Quantity.
13. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia, (HTS-0201+ HTS-0202) 2005-2009, by FAS Value.
14. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia, (HTS-8800000000, HTS-8802120040, HTS-8802400060, HTS-8802110090, HTS-8802120080, HTS-8802400090, HTS-8802110030, HTS-8802200015, HTS-8802300060, HTS-8802300040, HTS-8802300030, HTS-8802300080, HTS-8802200040, HTS-8802200080, HTS-8802200060, HTS-8802110045, HTS-8802400040), 2005-2009, by FAS Value.
15. Philip Butterworth-Hayes, “Central, East Europe Lead Aviation Growth,” Aerospace America, October 2008.
16. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia, (HTS-8703) 2005-2009, by FAS Value and by Quantity.
17. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia (HTS-8407 + HTS-8408 + HTS-8409 + HTS-8412), 2003-2009, by FAS Value.
18. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia (HTS-8413500010, HTS-8413600050, HTS-8428900020, HTS-8428908020, HTS-8430494000, HTS-8430498010, HTS-8430498020, HTS-8431390050, HTS-8431398050, HTS-8431434000, HTS-8431438010, HTS-8479899550, HTS-8479899750, HTS-8479899850, HTS-8485900040, and HTS-8487900040), 2003-2009, by FAS Value.
19. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia, (HTS-8701901065, HTS-8701901070, HTS-8701901060, HTS-8701901055, HTS-8701901090, HTS-8701901035, HTS-8701901015, HTS-8701901010, HTS-8701901040, HTS-8701901030, and HTS-8701901005) 2003-2009, by FAS Value.
20. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia, (HTS-8467810000) 2003-2008 and Jan-Oct 2009 YTD, by Quantity.
