#5569 #5570
[Second Issue of the Day]
#7
US Department of State
26 November 2001
Byliner: Ambassador Vershbow on New U.S.-Russian
Economic Relationship
(Private and public sectors are working to expand
relationship) (950)
(Following is an article by U.S. Ambassador to the Russian Federation Alexander Vershbow on economic relations between Russia and the United States. No republication restrictions.)
A NEW ECONOMIC RELATIONSHIP BETWEEN RUSSIA AND THE
UNITED STATES
By Alexander R. Vershbow
(Alexander R. Vershbow is U.S. Ambassador to the Russian Federation)
The meetings last week between Presidents Bush and Putin demonstrated that the relationship between the United States and Russia is growing and maturing. The tragic events of September 11 and President Putin's support for the ensuing war on terrorism have given relations between our two countries a tremendous impetus. We are finding areas where we can work together for the benefit of both our countries. We still have areas of disagreement, of course, but we have more in common than we disagree on. The critical point is that we have a relationship that is sufficiently strong as to allow us to work through areas of disagreement. As President Bush put it, it's a "new day" in the relationship.
Coverage of the Bush-Putin summit focused on our joint efforts to destroy the terrorists that perpetrated the September 11 attacks, to create a stable and representative post-Taliban government in Afghanistan, and to create a new post-Cold War strategic framework. However, the economic dimension of our bilateral relationship was an equally important element of the recent summit discussions. Even before September 11, important progress was being made on strengthening our economic cooperation, with an emerging consensus that doing so is fundamental to moving to a constructive and vibrant post-Cold War relationship.
Our two governments must work together to create conditions that permit the private sector, Russian and American, to take the lead in making an expanded economic relationship a reality. The task of our two governments is to create a climate of confidence for trade and investment. An important element of creating such a climate of confidence is Russia's integration into the global economy. As part of this process, the United States is committed to working with the Russian Government to accelerate Russia's accession negotiations to the World Trade Organization (WTO). Our joint goal is completion of a first draft of Russia's Protocol of Accession to the WTO by the spring of 2002. Russia, for its part, must meet the conditions for WTO membership that all other acceding members have had to do, no more, no less. WTO membership does not mean Russia needs to completely open every bit of its market -- this is a common misconception. What Russia will need to do is to fully accept the rules-based system governing international trade that the WTO represents, and offer improved market access for other countries' firms and products. This will provide a level playing field for all firms, Russian and non-Russian, and strengthen Russia's economy.
President Bush has pledged to work with the Congress to graduate Russia from the provisions of the Jackson-Vanik amendment, a prerequisite to extending unconditional or permanent normal trade relations to Russia. We are prepared to act in other ways as well. The United States Export-Import Bank, our Overseas Private Investment Corporation (OPIC), and the Trade and Development Agency of the United States stand ready to promote trade and investment through project finance, risk insurance and project assessment. These agencies are already making significant contributions. OPIC project insurance and finance for Russia alone totals more that $425 million. My government is also increasing its funding for programs such as the European Bank for Reconstruction and Development's Russia Small Business Fund to provide financing for Russian entrepreneurs and to help Russian financial institutions provide such financing. We are committed to joining the Russian Government in facilitating a public-private Russian-American Banking Dialogue among banks, businesses, financial institutions and financial authorities. This dialogue will, we hope, promote the growth of the Russian banking sector in ways that serve the needs of a free market economy. This would fill an important gap in the Russian reform effort to date.
We are working in other ways to promote business confidence. U.S. Secretary of Commerce Donald Evans recently led an American business delegation to Russia. This was the first such high-level trade mission of the Bush administration. The Russian and American private sectors have launched a Russian-American Business Dialogue that will make initial recommendations on ways to promote trade and investment to the Russian and American governments in early 2002. Representatives of both of our countries are meeting regularly in an effort to resolve outstanding business disputes. And, a number of major investments have recently been announced. U.S. Energy Secretary Spencer Abraham will participate in next week's inauguration of the Caspian Pipeline Consortium's new oil export route. This multi-billion dollar project is the largest foreign investment in Russia to date. In addition, a consortium led by Exxon-Mobil recently announced firm plans to proceed with investing $12 billion [$12,000 million] in its oil and gas project in Sakhalin -- a project that will create as many as 10,000 new jobs.
The economic relationship between our two countries forms the basis of the "new day" in U.S.-Russian relations that President Bush signaled at the summit. The United States Government is committed to working with the Russian Government and the private sectors of both countries to expand the frontiers of shared economic interests. These shared interests will strengthen the basis of a cooperative relationship across a broad spectrum of issues, a relationship that will allow us to work together to resolve not just today's problems but those that we will face in the new century.
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