06 April 2007
U.S. Commerce Secretary Hails Strong U.S.-Russian Economic Ties
Gutierrez also calls for more transparency, openness in Russian markets
Washington -- Political issues between the United States and Russia receive the most public attention, but growing economic ties between the two countries are “a great untold story,” says U.S. Commerce Secretary Carlos M. Gutierrez.
This year marks the 200th anniversary of diplomatic relations between the United States and Russia.
Speaking April 4 in Moscow at a conference of the American Chamber of Commerce in Russia, Gutierrez said many U.S. multinational corporations consider Russia a strategic market. He added, however, that further expansion of mutual commercial engagement requires more openness, transparency and anti-corruption efforts in Russia. (See related article.)
Today, Russia has a nearly $1 trillion economy in its ninth straight year of growth, with inflation below 10 percent and an 11 percent increase in real disposable income within the past year, Gutierrez said. In 2006, U.S. exports to Russia grew 20 percent to $4.7 billion and Russian exports to the United States increased by 30 percent to more than $19 billion.
Russian direct investments in U.S. mining, steel-manufacturing and retail petroleum have reached $3 billion, and U.S. direct investments in Russia have grown to $11 billion, the secretary said.
With both countries working side by side to achieve Russian membership in the World Trade Organization (WTO), “we are now poised to enter a new era of commercial engagement which will strengthen our ties, grow our economies and create prosperity for our citizens,” Gutierrez said.
But as Russia begins to reap the benefits of its engagement with the global economy, greater transparency and openness of its business environment becomes a crucial requirement, the U.S. commerce secretary said.
“We believe that companies and economies benefit from the accountability provided by a vibrant media and independent courts, he said. Transparency and predictability in investment regulations ”would send positive signals to potential partners in both countries,” he added. (See related article.)
Gutierrez said that although the United States understands other countries’ interests in protecting so-called “strategic” aspects of their economies, protectionist policies that seek to cordon off whole segments of an economy “carry risk of their own to a nation’s economic strength.”
Gutierrez said that the United States and Russia should aim for a stronger partnership in such areas as energy, aerospace, transportation infrastructure and high technology. Russian companies could benefit greatly from tremendous technological advancements in those fields, he added.
But, according to Gutierrez, the U.S. business community’s perception of Russia is colored “by political issues such as energy security and a challenging business climate.
“With the maturity of our bilateral relations, we can afford to be frank and honest with one another about issues on which we disagree, in the economic as well as other areas,” he said.
For additional details, see the full text of Gutierrez’s remarks, as prepared for delivery.
(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
