Trade restrictions to be lifted and boost exports to Russia

It has been announced that a House committee approved legislation last week that would see an end to Cold War restrictions that have been in place and help to normalize trade with Russia. This is after a US business group pressed for congressional action as soon as possible.

With Russia formally joining the World Trade Organization towards the end of August, barriers on imports will be lowered; however, if Congress does not remove the trade restrictions that are still in place from the days of the Soviet Union’s existence then companies based in the US will not be able to take advantage of what is being seen as an improved trading environment within Russia.

In a voice vote, The House Ways and Means Committee approved a bill that will establish permanent and normal relations with Russia in a move that repeals the Jackson-Vanik Act of 1974, which limited trade with the Soviet Union due to its policies that restricted the emigration of minorities.

Speaking about the move, the chairman of Caterpillar Inc, Doug Oberhelman, said: “If congress fails to act this summer, it will have missed an immediate opportunity to support the US economy and American jobs.” Mr Oberhelman is also the chairman of the Business Roundtable’s international engagement committee.

At present the US exports approximately $9 billion worth of goods to Russia each year; however, experts believe this could double within the next five years if businesses were allowed access to lower tariffs in addition to greater assurances over the protection of intellectual property and the removal of other barriers to investment that currently exist.