Posts Tagged ‘Russia’

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Featured Trade Event: U.S. Automotive Parts and Components Trade Mission to Russia

November 1, 2011

April 22–28, 2012
U.S. Automotive Parts and Components Trade Mission to Russia
Moscow, St. Petersburg, and Samara, Russia

Saint Basil’s Cathedral, Moscow. (© Jupiterimages/Getty)

Saint Basil’s Cathedral, Moscow. (© Jupiterimages/Getty)

This mission is designed to provide an opportunity for a diverse cross-section of U.S. companies that sell automotive goods and services to explore Russia’s rapidly expanding car and truck assembly market. It will be led by Michelle O’Neill, deputy under secretary of commerce for international trade.

With more than140 million consumers and a growing middle class, Russia remains one of the most promising markets for U.S. exporters. Sales of cars and trucks in Russia are currently growing at an annual rate of 30 percent. In 2010, Russian customers purchased 1.9 million cars. This figure includes 646,000 new Russian cars and 1.25 million foreign cars, both imported and produced in Russia. Importers forecast continued rapid growth of approximately 20 percent in 2011. If these trends continue, most experts project Russia will be the largest automotive market in Europe within the next few years.

Foreign automakers have taken notice of the Russian automotive market’s potential for growth and are building assembly plants to meet the increasing demand for high-quality automobiles. General Motors, for example, has a $335 million plant in Togliatti, a joint venture with Russian auto giant AvtoVaz. Other major international producers, including Nissan, Toyota and Hyundai, have made significant investments in St. Petersburg and the surrounding Leningrad oblast, turning it into a new automotive assembly cluster.

Specific automotive sectors targeted for attention by this trade mission include components for vehicle manufacture, replacement parts, aftermarket products, repair equipment, testing equipment, and software and engineering services.

The mission will begin in Moscow and will include site visits and consultations in St. Petersburg and in two centers of the Russian auto industry, Samara and Togliatti. In addition to market briefings by industry experts, the mission program will include opportunities to meet key Russian government officials and decision-makers, one-on-one meetings with potential business partners, and site visits to automotive assembly plants and component manufacturers.

The cost to participate in the trade mission ranges from $4,952 to $5,701 per company for one representative, depending on firm size. There is a $1,220 fee for each additional company participant. The fee covers all in-country travel and one-on-one meetings, but mission participants will be responsible for travel to and from Russia, lodging, most meals, and incidentals. Applications must be received by January 6, 2012. For more information about the trade mission, visit its Web site or contact Eduard Roytberg of the USFCS, tel.: (909) 466-4138; e-mail: eduard.roytberg@trade.gov, or Kenneth C. Duckworth of the USFCS, tel.: +7 (812) 326-2560; e-mail: kenneth.duckworth@trade.gov.

A related webinar, “The Russian Automotive Sector—New Opportunities for U.S. Suppliers,” will be held November 17. For more information, go to http://export.gov/industry/auto/russia039444.asp.

Posted in Commercial Service, Exporting, International Trade Administration, International Trade Update, Trade Missions | Tagged , | 10 Comments »

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Russia Encouraged to Develop Transparent Procurement Practices

September 9, 2011

by Tracy Perrelli, an international trade specialist in The International Trade Administration’s Market Access and Compliance unit.

In 2009, President Barack Obama and Russian President Dmitriy Medvedev met in Moscow to help improve commercial relations between the United States and Russia. To continue this dialogue, a delegation of 13 officials from the Russian Ministry of Economic Development came to Washington, D.C., on May 18–20, 2011, to look at ways to improve government procurement regulations. Oleg Savelyev, deputy minister of economic development, led the Russian delegation.

Michelle O’Neill, deputy under secretary for international trade, encouraged the Russians to adopt government procurement principles that are more in line with the Agreement on Government Procurement of the World Trade Organization (WTO). “If done right, procurement can spur efficiency … and provide opportunities for innovative companies to grow. If done badly, it can waste resources and harm the economy.”

O’Neill attended as coordinator of the U.S.–Russia Business Development and Economic Relations Working Group, a joint U.S.–Russia body that was established because of the 2009 presidential summit. She pointed out the likely benefits to U.S. firms under a procurement system that adheres to international norms. “If Russia implements a procurement system that is more transparent, more receptive to merit, less prone to favoritism—and similar to the system with which U.S. firms are accustomed to dealing when selling to our government—this will spur more business opportunities for U.S companies.”

The meetings came at a critical time because Russia is currently considering ways to improve its government procurement system. Medvedev tasked the Ministry of Economic Development with drafting new procurement legislation by fall 2011.

The Europe division of the International Trade Administration’s Market Access and Compliance unit, with support from six other federal agencies, organized the program for the Russian delegation. Program topics included the principles of transparency and fair competition in the U.S. procurement system, methods of procurement, contract price determination, reverse auctions, use of e-government to enhance efficiency, and an overview of the WTO’s Agreement on Government Procurement.

Posted in International Trade Administration, International Trade Update, Market Access and Compliance, WTO | Tagged , | 2 Comments »

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Bringing the Russian Market to America Part 2

May 3, 2011

John McCaslin is Minister Counselor for Commercial Affairs for the U.S. Foreign and Commercial Service in Moscow, Russia.

Leaving Cincinnati on a Sunday  I would start the toughest part of my journey, four cities in five days.  Arrived very late Sunday night in Baltimore via Minneapolis due to cancellation of the original direct flight.  The BRIC program started first thing Monday morning at a downtown hotel and featured an excellent keynote address by our Assistant Secretary for Trade Promotion, Suresh Kumar, followed by individual country plenary presentations on each of the four markets, and then concurrent breakout sessions on more specific aspects of doing business in these markets by successful US companies; a great program all in all, with over 100 business participants.

As noted earlier, these types of business outreach programs are put together by our outstanding domestic field and their local partners, in this case the Baltimore U.S. Export Assistance Center (USEAC) and the state of Maryland.  Again,  all I had to do was show up.  Baltimore is a great venue for these types of programs because of its proximity to Washington, which makes it easy to bring in senior U.S. Department of Commerce management, our Market Access and Compliance country desk officers and Commerical Service Regional Directors; quite a formidable array of U.S. government resources all brought together to support our US business clients in a very practical and informative format.

As usual, the local USEAC set up meetings for me at the hotel with individual local companies interested in the Russian market, so after my presentation to the larger group and before hopping on a plane for my next city, I met with two local firms.  One company, an experienced manufacturer and distributor of dental products with lots of international sales, was already established in Russia and was coming to me for advice on a problem with their exclusive Russian distributor.  This is a pretty typical case for many US firms that come our way and we always try to do our best to help them out.  The issue involved counterfeit products of the US company showing up in Russia, which was hurting legitimate sales.  Intellectual property rights (IPR) is a big issue in Russia and one in which we are well equipped to assist, since we have a U.S. Patent and Trademark Office Attache that sits in our FCS office in Moscow and a Russian IP attorney on staff.  I put the US firm in touch with our IPR staff in Moscow along with our Commercial Specialist who covers the medical sector, so they will be in good hands.

The second company was a well established manufacturer from Pennsylvania that sold duct work accessories into the HVAC sector in a number of foreign markets.  They have had some passive export sales to Russia, but really wanted to do much more.  I had a feeling we could really help this company so that day I put them in touch with our Moscow Commercial Specialist who covers this sector in order to start a dialogue and also looped in our Pittsburgh USEAC, which has worked with this company in the past.  Looking ahead to possible trade promotion opportunities, I let this firm know about a proposed energy efficiency trade mission to Russia later this year that the US Dept of Energy is planning with support from our agency.  This could be an interesting market entry vehicle for the company since the mission would be designed to bring Russian firms to the US and then take US firms to Russia in order consummate in-depth, long lasting business relationships.

Next stop Cleveland.

Posted in Commercial Service, Exporting, Import Administration, Interagency, International Trade Administration, Trade Shows and Trade Events | Tagged , , , , , , | 3 Comments »

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Bringing the Russian Market to America

April 30, 2011

John McCaslin is Minister Counselor for Commercial Affairs for the U.S. Foreign and Commercial Service in Moscow, Russia.

Left Moscow at the end of April on a long planned six city trek across America to promote the Russian market to US business in a series of group programs and individual meetings.    I built the trip around my last stop, San Francisco, where we will have our annual European Senior Commercial Officer conference the week of May 8.  During the course of my travels I expect to make contact with over three hundred companies and generate significant new business for CS Russia.

First stop Cincinnati.  Whenever I travel around the US I am always impressed with the value of our domestic network and their state and local partners.  My April 28-29 programs in Cincinnati were no exception. 

Our local U.S. Export Assistance Center (USEAC) in Cincinnati and their partner, the European-American Chamber of Commerce, put together a first-class full-day program that included participation of the Russian Trade Representation from Washington, calls on  local exporters, a tour of the DHL international shipping facility and a group program hosted by a major local CS Russia client that included 50 local companies interested in doing business in Russia. The CS Russia client was a machine tool manufacturer that participated in our Aerospace Supply Chain Trade Mission to Russia last October, from which they have already generated several million dollars in sales. So they offered a great testimonial on CS services and how to do business in Russia.  We finished the day with a private VIP dinner hosted by GE at their manufacturing facility where we dined literally in the shadow of a huge GE 90 engine, the most powerful commercial aircraft engine in the world.

All I had to do was show up and give my presentation.

The next day was a series of individual meetings with five local companies hosted by our Cincinnati USEAC.  Part of my standard pitch on opportunities in Russia is that it is a challenging market with excellent prospects in selected sectors, but it is not for everyone.  True to form, of the five companies I met with and counseled, I advised two that they should look elsewhere.  Both were first-time exporters and I explained that the best use of their limited resources at this point in time would be more accessible markets closer to home.  Our Cincinnati USEAC will work closely to help make these clients export ready and identify the most promising markets in the region for them.  The other three, a retail design firm, airplane propeller manufacturer and a large medical device company, all with good international experience, will be working with our CS Russia team soon.

Next stop Baltimore.

Posted in Commercial Service, Exporting, International Trade Administration, Trade Shows and Trade Events | Tagged , , , | 3 Comments »

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