Did You Know?
With over 140 million consumers, a growing middle class, and almost unlimited infrastructure needs, Russia remains one of the most promising markets for U.S. exporters.
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Russia is the world’s 11th largest economy by nominal GDP, 6th largest by PPP and has the highest per capita GDP ($13,236) of the BRIC countries. It is an upper middle income country, with a highly educated workforce and sophisticated, discerning consumers.
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Russia’s economy is still recovering from the economic crisis that started in 2008, with GDP growth at 4.3% for 2011. Economists forecast real GDP growth of 3.3% – 3.5% in 2012.
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Russia was the U.S.’s 31st largest export market and the 14th largest exporter to the U.S. in 2011. Russia accounted for 1.16% of total U.S. trade, making it our 20th largest trading partner overall. U.S. exports to Russia were $8.3 billion, the highest since 2008, and a 39% increase from 2010. This is more than double the growth rate for overall U.S. exports worldwide which were up only 16%. Russian exports to the U.S. were $35 billion, up 21% from 2010. Russian sources list the country’s leading trade partners as: Netherlands, China, Germany, Italy, Ukraine and Turkey.
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U.S. accumulated investment in Russia is approximately $10 billion. According to Russian data, the U.S. is Russia’s 10th largest foreign investor.
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Russia formally acceded to the WTO in August 2012. This will liberalize trade with the rest of the world and create opportunities for U.S. exports and investments. For industrial and consumer goods, Russia’s average bound tariff rate will decline from almost 10% to under 8%.
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U.S. manufacturers and exporters will have more certain and predictable market access as a result of Russia’s commitment not to raise tariffs on any products above the negotiated rates.
- More liberal treatment for service exports and service providers.
- Stronger Commitments for Protection and enforcement of IPR.
- Rules-based treatment of Agricultural exports.
- Market access under country-specific tariff-rate quotas.
- Improved transparency in trade-related rule-making.
- More effective WTO dispute resolution mechanisms