Washington, DC - March 16, 2012 - Ron Pollett, President & CEO, GE in Russia and CIS in his testimony before the United States Senate Committee on Finance fully supported establishment of permanent normal trade relations (PNTR) with Russia.
The PNTR status has been restricted by Jackson-Vanik amendment, which significantly limits US-Russia trade growth and the application of World Trade Organization (WTO) rules between the two countries.
"For the past 12 years, I have been living and working in Russia to build GE business in the region. I have witnessed firsthand the dramatic changes Russia has undergone in a short period of time, and I truly believe that Russia is now poised to become an even more active and significant player in the global economy. But I've also been in a position to observe how, on the whole, US businesses are underrepresented in the Russian market and underperform relative to their European and Asian counterparts, which have stronger historical ties and a bigger presence. I believe PNTR can change this,"- says Ron Pollett.
US trade with Russia is growing. In 2011, US exports were $8.3 billion, up 39% from 2010 and more than double the growth rate for overall US exports worldwide. But the US also has a relatively small presence in the Russian market -- accounting for just 4% of Russian imports. By contrast, East Asia and the European Union accounted for 29% and 43%, respectively, of Russian imports, - mentions GE President & CEO in Russia and CIS.
GE provides a case in point of how Russia can be a great market for a company willing to engage. When I arrived in Russia in 1998, GE had a mere $110 million in sales. Last year, we had more than $1.6 billion in sales, and our industrial businesses alone saw almost $1.2 billion in US-origin orders from Russia -- up from $410 million in 2010.
Today, GE is the largest foreign industrial company operating in Russia. To enhance its footprint in the coutry in 2011 GE signed two major joint venture deals with local russian state-owned companies in energy and health care sectors, - depicts Ron Pollett. Russia is a big, briskly growing economy: its GDP has more than doubled in the past decade and is expected to grow an average of 4% in the next 3 years.
But for US companies to take full advantage of Russia's growing market, Congress must repeal Jackson-Vanik and establish permanent normal trading relations with Russia. This is key for US companies to compete on a level field, as they seek to grow their business in Russia,- he insisted.
Moreover, the more American companies are able to take advantage of opportunities to do business in Russia, the more Russia's business climate will evolve to meet international standards, - finalizes Ron Pollett, President & CEO, GE in Russia and CIS.
Ron Pollett is a US citizen, who was born and grew up in New York City, attended Colgate University. He joined GE in July 1991 and was posted to Russia IN 1998.
The amendment, named after Congressmen Henry M. Jackson and Charles Vanik, was introduced in 1974 to restrict trade with the Soviet Union and other non-market economies until they allowed free emigration.
The amendment limits trade with Russia and is an obstacle to the application of World Trade Organization (WTO) rules between the two countries. The restrictions imposed by Jackson-Vanik are often waived, but remain in place and are a thorn in the side of Russia-U.S. trade relations.
Elena Ushakova
GE Russia/CIS
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