Russia imported nearly $300 billion in goods in 2011, yet the United States accounted for only five percent of those imports.
At the Oval Office in the White House today, Caterpillar Inc. Chairman and Chief Executive Officer Doug Oberhelman said the signing of legislation to establish Permanent Normal Trade Relations (PNTR) with Russia is a great example of how more open trade will benefit the United States and its trading partners. Oberhelman was among a group of people invited by President Barack Obama to witness the bill signing for the legislation, which normalizes trade with Russia, following that country’s entry into the World Trade Organization (WTO) earlier this year. The legislation had strong bipartisan backing in Congress and the support of the Obama Administration.
"I am honored to attend this historic event, and feel this law is proof that our leaders in Washington can set aside party affiliations and cast the right votes that are in the best interest of the United States and, in this case, an important trading partner like Russia," Oberhelman said. "By joining the WTO, and with the signing of this law, the United States and Russia have set the stage for a new era of trade, job creation and investment that should benefit the economies of both countries," Oberhelman said. “Without PNTR, American companies that export to Russia would have remained at a competitive disadvantage compared to European and Asian-based companies that export to Russia."
Russia imported nearly $300 billion in goods in 2011, yet the United States accounted for only five percent of those imports. Russia is the sixth largest economy in the world in terms of purchasing power, but it was ranked 31st among all export markets for U.S. goods in 2011.
“This new law can help to improve those figures by expanding trade opportunities and the jobs associated with exports,” Oberhelman said.
“In the last five years, Caterpillar exports from the U.S. to Russia have totaled about $2 billion, but we think PNTR will pave the way for increased exports for American made products and agricultural items,” Oberhelman said. “Establishing PNTR puts Caterpillar on equal footing with our competitors from other countries, most of who already benefited from Russia’s entry into the WTO. We expect it will also benefit our Russian customers. Along with WTO membership, PNTR provides a framework for Russia and the United States to expand trade on a level playing field for both countries, while expanding free market principles,” Oberhelman said.
Since 1992, the United States has maintained Normal Trade Relations (PNTR) with Russia on a temporary, year-to-year basis. The WTO, however, requires its members give each other PNTR, and until the signing of the bill, the U.S. was the only WTO member country that had not established normal trade ties with Russia.