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Coalition for U.S.-Russia Trade
1110 Vermont Avenue, NW
Suite 350
Washington, DC  20005
Fax: (202) 659-5920

Randi Levinas
Executive Director
Phone: (202) 739-9196
Email: Randi Levinas

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U.S.-Russia Trade:  Opportunities for U.S. Exporters: Get the Facts!

The Russian Market Holds Long-Term Opportunities for U.S. Exporters
With a large and growing economy, Russia has demonstrated strong potential as a growing market for U.S. exports.

  • U.S. exports to Russia grew 11% in 2010 to reach a total of nearly $6 billion. In 2011, exports to Russia are on pace to nearly match their pre-recession high of $9 billion, recorded in 2008.1
  • With the Russian economy growing rapidly over the past decade, U.S. exports to Russia have grown more than twice as fast as U.S. exports to the world2, making Russia an important market for several major categories of U.S. exports.
  • By some estimates, U.S. exports to Russia could double or triple once Russia joins the World Trade Organization (WTO) – but only if the U.S. Congress passes permanent normal trade relations (PNTR) for Russia.3

U.S. Exporters across Sectors are Capitalizing on Demand in the Russian Market
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.

  • In 2010, more than 66 million of Russia’s 142 million people were regular internet users, and this number is expected to jump by 20% in 2011. With market penetration of computers at 43% and growing, Russia offers export opportunities to U.S. high-tech manufacturers. In 2010, U.S exports to Russia of automatic data-processing machines grew 14% over their 2009 level to a total of $86 million. Rising exports recorded before the global economic crisis indicate significant growth opportunities for U.S. exporters – for example, U.S. data processor exports to Russia saw growth of 133% to a total of $117 million in 2007.4
  • Russia is now the 8th largest market in the world for U.S. exports of PVC and other polymers used to make furniture, pipes and surface coatings. In 2010, U.S. exports to Russia of PVC and related polymers totaled more than $162 million, exceeding the record high of $27 million exported to Russia in 2009 by almost 500%.5 PVC exports contributed to a total of $285 million in U.S. plastic and plastic article exports to Russia in 2010, representing growth of 112% over 2009 levels.6
  • Imported products comprise 53% of Russia’s $8.4 billion market for cosmetics and toiletries.7 In 2010, U.S. exports to Russia of make-up, skin-care and beauty preparations maintained their strong 2009 total of $53.5 million8, and prior to the recession these U.S. exports to Russia had grown 57% annually in 2008 to a total of $87.5 million.9
  • Russia is an attractive market for U.S. nut growers. In 2010, U.S. nut exports to Russia grew 32% in value terms over 2009 levels to $61 million, exceeding the pre-crisis high of $49 million recorded in 2008.10 Upon accession to the WTO, Russia will bind its tariffs on almonds, walnuts and pistachios to 5%11, which may provide for additional increases in U.S. exports.

Russia Is a Major Destination for U.S. Meat Exports
Russia has historically been the top market in the world for U.S. poultry exports.12 It is also the 5th largest export destination for U.S. pork and swine meat13 and the 8th largest market in the world for U.S. beef exports.14

  • In the pre-recession years, the dollar value of U.S. poultry exports to Russia more than doubled between 2003 and 2008, reaching an annual high of $822 million (834,000 metric tons). In 2010, despite a decline in exports due to a Russian ban on U.S. poultry treated with chlorine-based disinfectants, Russia remained among the top 10 markets in the world for U.S. poultry, with U.S. farmers exporting $316 million (330,000 metric tons) worth of poultry to Russia.15 Russia has reopened its market to U.S. poultry products16, and as a WTO member, Russia will be required to adhere to internationally-recognized scientific standards when regulating meat imports, thereby ensuring greater predictability for U.S. exporters seeking to supply the large and growing Russian consumer market.
  • U.S. pork exports to Russia totaling more than $155 million (nearly 54,000 metric tons) in 2010. Russia has demonstrated significant growth potential as a market for U.S. pork products – before the economic crisis, U.S. pork exports to Russia grew tenfold between 2004 and 2008 to reach a high of $315 million (134,000 metric tons).17 WTO rules are expected to help address ongoing concerns over Russian SPS practices that have impacted U.S. pork exporters.
  • U.S. exports to Russia of frozen and fresh bovine meat jumped to more than $102 million (more than 23,000 metric tons) in 2010. Such high levels of U.S. beef exports to Russia were last seen a decade ago in 2000, when they totaled $86 million.18 More than 70 facilities across 20 states are now exporting beef to Russian customers.19

Russia Is an Important Market for U.S.-Made Vehicles and Parts
The vastness of Russia’s territory drives demand for aircraft, cars and parts, presenting export opportunities for U.S. vehicle and parts manufacturers.

  • U.S. aerospace firms exported over $275 million worth of aircraft, spacecraft and parts to Russia in 2010. Prior to the recession, these U.S. exports to Russia had grown an average of 137% annually between 2004 and 2007 to reach a peak of more than $754 million before declining to to an annual average of half a billion dollars in 2008-2009.20 Future exports are likely to be driven by Russia’s need for 960 new planes, valued at approximately $90 billion, over the next 20 years.21
  • Currently the 10th largest automotive market in the world, Russia is expected to grow to become the world’s 6th largest car market, importing 3.5 million cars by 2015 and 4 million by 2020.22 In 2010, U.S. exports to Russia of motor vehicles totaled over $189 million, growing 282% in dollar terms over 2009 levels. Prior to the recession, Russia was the 9th largest market in the world for U.S. motor vehicle exports, with Russia’s imports of U.S. motor vehicles reaching nearly $1 billion (more than 48,000 vehicles) in 2008.23
  • Russia powers many of its vehicles with U.S.-made engines. In 2010, U.S. exports to Russia of engines and engine parts grew 60% over 2009 levels to more than $43 million. In the pre-crisis years, these exports to Russia had totaled more than $70 million annually.24

Russia Relies on Foreign Machinery to Help Extract Its Abundant Natural Resources
Russian mining and harvesting firms utilize imported equipment to extract and gather oil, gas, minerals, food, and timber and bring them to market.

  • With the world’s largest natural gas reserves, second-largest coal reserves and seventh-largest oil reserves25, Russia is the world’s largest exporter of energy.26 The U.S. exported over $276 million worth of oil and gas field equipment and parts to Russia in 2010, following 2009 exports of $309 million. Previously, these exports to Russia had grown an average of 21% annually between 2005 and 2008, reaching a peak of more than $422 million in 2008.27
  • With 8% of the world’s farmland, Russia needs high-quality tractors to farm its 480,000 square miles of arable land.28 Russia’s market for agricultural machinery grew by 15% in 2010, and imports of agricultural machinery were up 57% over the previous year.29 U.S. agricultural tractor exports to Russia, which totaled more than $18 million in 2010, have a history of impressive growth – these exports to Russia grew twentyfold between 2003 and 2008, reaching an annual high of $350 million.30
  • With more than 20% of the world’s forested land, Russia holds the world’s largest timber reserves31 and is the top market in the world for U.S. chainsaw exports. In 2010, U.S. chainsaw exports to Russia grew 8% over the previous year in both dollar and quantity terms to total nearly $60 million (552,000 chainsaws). Over the past decade, U.S. chainsaw exports to Russia have grown an average of approximately 130% per year in both dollar and quantity terms.32

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1. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia (All Export Categories) 2000-2010, by FAS Value.
2. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia and the World (All Export Categories) 2000-2010, by FAS Value.
3. Gary Clyde Hufbauer, “The Impact of Russia PNTR and WTO Accession on the United States,” Peterson Institute for International Economics, April 15, 2011.
4. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia (HTS-8471), 2006-2010, by FAS Value.
5. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia and to All Countries, (HTS-3904), 2004-2010 YTD, by FAS Value.
6. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia, (HTS-39), 2004-2010 YTD, by FAS Value.
7. Doing Business in Russia: 2010 Country Commercial Guide for U.S. Companies, U.S. Commercial Service and U.S. Department of State, 2010.
8. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total Exports to Russia, (HTS-3304), 2008-2010, by FAS Value.
9. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total Exports to Russia, (HTS-3304), 2005-2010, by FAS Value.
10. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia, (HTS-0802) 2000-2010 YTD, by FAS Value.
11. “Results of Bilateral Negotiations on Russia's Accession to the World Trade Organization (WTO): Agricultural Goods Market Access,” Office of the U.S. Trade Representative, November 19, 2006.
12. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia and to All Countries, (HTS-0207) 2000-2010 YTD, by FAS Value and by Quantity.
13. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia and to All Countries, (HTS-0203) 2000-2010 YTD, by FAS Value and by Quantity.
14. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia and to All Countries, (SITC-011) 2000-2010 YTD, by FAS Value and by Quantity.
15. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia and to All Countries, (HTS-0207) 2000-2010 YTD, by FAS Value and by Quantity.
16. “United States, Russia Reach Agreement to Resume Poultry Exports to Russia,” Press Release, Office of the U.S. Trade Representative and U.S. Department of Agriculture, June 24, 2010.
17. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia and to All Countries, (HTS-0203) 2000-2010 YTD, by FAS Value and by Quantity.
18. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia and to All Countries, (SITC-011) 2000-2010 YTD, by FAS Value and by Quantity.
19. “Eligible Plants List (Beef) - Russian Federation,” U.S. Department of Agriculture Food and Safety Inspection Service, March 25, 2011, http://www.fsis.usda.gov/Frame/FrameRedirect.asp?main=http://www.fsis.usda.gov/OFO/export/lrubeef.htm, (accessed April 29, 2011).
20. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia, (HTS-88), 2000-2010, by FAS Value.
21. The Boeing Company.
22. Nadia Popova, "Car Makers Pledge To Invest $4B-$4.5B In Russia - Source." Wall Street Journal, May 31, 2011.
23. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia and to All Countries (HTS-8703) 2006-2010, by FAS Value and Quantity.
24. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia (HTS-8407 + HTS-8408 + HTS-8409 + HTS-8412), 2000-2010, by FAS Value.
25. BP Statistical Review of World Energy 2010, BP p.l.c., June 2010.
26. Maria Bartiromo, “Oil Remains King in Russia, But for How Long?” CNBC.com, June 22, 2010, http://www.cnbc.com/id/37851013/Oil_Remains_King_in_Russia_But_for_How_Long, (accessed August 6, 2010).
27. 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), 2000-2010, by FAS Value.
28. Jason Bush, “Farming Makes a Comeback in Russia,” Businessweek, October 9, 2008.
29. “Rise in Imports of Agricultural Machinery from the West,” Interfax Selskoe Khozyaystvo i Prodovolstvie, February 22, 2011.
30. 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) 2004-2010, by FAS Value.
31. “Forest Area, 1000 Hectares,” UNdata, http://data.un.org/Data.aspx?q=forest&d=FAO&f=itemCode%3a6661, (accessed October 28, 2009).
32. U.S. International Trade Commission Interactive Tariff and Trade DataWeb, Total U.S. Exports to Russia, (HTS-8467810000) 2000-2010, by FAS Value and Quantity.

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