Press Release

U.S. Commerce Secretary to Visit Russia and Ukraine April 2-5

Gutierrez Will Urge Both Countries to Complete WTO Accession Process

WASHINGTON—U.S. Commerce Secretary Carlos M. Gutierrez will visit Moscow, Russia, April 2-4 and Kyiv, Ukraine, April 4-5 to meet with senior government officials, business leaders and members of civil society to discuss economic reforms, their respective World Trade Organization (WTO) accession efforts and bilateral trade ties.

"I’m looking forward to meeting with government officials, business leaders and members of civil society in both Russia and Ukraine to hear how they’re promoting economic growth opportunity and good governance in this very important part of the world," said Gutierrez, who will specifically discuss removing red-tape, increasing transparency and investment and protecting American ideas and innovation.

Gutierrez traveled to Russia in May 2005 where he met with senior government officials including Minister of Economic Development & Trade German Gref. The Secretary will be the first U.S. Commerce Secretary to visit Ukraine since the country gained independence in 1991.

Russia
In Moscow, April 2-4, Gutierrez will meet with senior government officials including Minister of Economic Development & Trade Gref on April 3 and 4 to discuss bilateral trade ties and Russia’s progress toward WTO accession. Secretary Gutierrez will give a major address on bilateral economic relations at a business conference sponsored by the American Chamber of Commerce, will meet with university students from Moscow's Higher School of Economics, and will visit with U.S. businesses in Moscow. Discussions with Russian government officials will also include a focus on intellectual property rights, an area in which Russia has drawn criticism for inadequate legal protections and enforcement; on opportunities for U.S. exporters to sell to Russia’s state-owned sector, which has grown under the Putin Administration; and on Russian draft legislation that would set strict limits on foreign investment in a range of industries that the Russian Government deems “strategic,” such as energy, aerospace, transportation, and possibly others.

"Russia is an important global market. U.S. companies are finding more opportunities today in Russia’s growing economy and we are seeing Russian firms capitalizing on the openness of the U.S market, by making significant sales and investments in the United States. However, Russia needs to do more to improve its business climate and further promote economic growth by attracting broad investment, removing trade barriers and protecting innovation,” said Gutierrez. “Russia’s potential for economic growth and democracy will be enhanced by the fostering of a pro-investment, transparent, rule of law environment, and the United States looks forward to working with Russia."

Trade and investment between the United States and Russia have reached all-time highs as Russia continues to seek membership in the WTO. U.S. exports to Russia have grown an average of more than 20 percent annually for the past three years, and topped $4.7 billion in 2006, while reported direct investment in Russia by U.S. companies and their overseas subsidiaries is estimated at more than $11 billion, roughly twice as much as three years ago.

The United States and Russia signed a bilateral market access agreement in November 2006. Completion of this bilateral agreement, a necessary step in Russia’s WTO accession process, marks a significant milestone in Russia’s effort to join the WTO, although Russia must also complete ongoing multilateral negotiations with the WTO membership. Secretary Gutierrez will encourage Russian officials’ follow-through on further steps necessary to satisfy the United States and other WTO members that Russia’s trade regime will meet WTO requirements.

Ukraine
Gutierrez, in Kyiv April 4-5, will meet with senior government officials, including Prime Minister Yanukovych, First Deputy Prime Minister Mykola Azarov and Minister of Economy Kinakh. Discussions with Ukrainian government officials will focus on Ukraine’s investment climate and reforms needed to make Ukraine more business-friendly and encouraging Ukraine to further integrate into the global economy, including completing the process of WTO accession.

"Ukraine’s growing economy and strides toward global economic integration will present exciting, new commercial opportunities for both countries," said Gutierrez. "While Ukraine has made progress on intellectual property rights, protecting innovation remains an ongoing challenge and I look forward to my discussions with government and business leaders on Ukraine’s economic reform efforts. By removing barriers and protecting trade, we can grow both of our economies and expand our peoples’ prosperity."

Gutierrez will hold a roundtable discussion with U.S business leaders to discuss Ukraine’s investment and the business climate and will speak at the fifteenth anniversary reception of Ukraine’s American Chamber of Commerce.

U.S.-Ukraine trade continues to increase, reaching nearly $2.4 billion in 2006, with Ukraine moving forward to join the WTO. U.S. exports to Ukraine grew by over 40 percent last year, to over $750 million. Economic relations have improved steadily. During the past year, the United States and Ukraine concluded a bilateral WTO market access agreement, the United States granted Ukraine Market Economy Status, and graduated Ukraine from the Jackson-Vanik Amendment. In response to the strides the Ukrainian government made to protect intellectual property, last year the United States removed trade sanctions, restored Ukraine’s Generalized System of Preferences (GSP), and changed Ukraine’s status under U.S. trade law.

The United States and Ukraine signed a U.S.-Ukraine WTO Bilateral Agreement on market access in March 2006. Last year, Ukraine’s parliament passed a number of laws and amendments aimed at bringing its trade regime in line with the WTO. Ukraine must complete ongoing multilateral negotiations with other WTO members. Secretary Gutierrez will encourage Ukraine to take the remaining steps needed to complete the accession process.