How the Trade Began
Russia, also known as the Russian Federation is considered as the largest country in the world. Apparently, this significant fact makes it one of the strongest nations in terms of world trade. Stretching from Europe to the Pacific Ocean, it borders on Norway, Estonia, Finland, Latvia, Belarus and Ukraine in the west. On the south of Russia lies the Black and the Caspian Sea together with Georgia, Azerbaijan, Kazakhstan, Mongolia, North Korea and China. The Arctic Ocean is found on its north while the Sea of Okhotsk and the Bering Sea flunk its eastern portion. Russia's topography is composed of four regions namely the Russian plain of European Russia, the Caucasus Mountains, the Ural Mountains , the vast West Siberian plain and the uplands of East Siberia and the Russian Far East. The climate of the country is very continental with very cold winters and hot summers. The coldest part in the Northern Hemisphere is the northeast Siberia. Russia's important mineral resources are coal, petroleum, natural gas, iron ore and other metals. It is also considered as a major industrial power. Agriculture primarily focuses both on grain growing and cattle raising. In the 1990's, the Russian Economy was in a state of upheaval due to the attempt to transform from the centrally planned socialist system of the Union of Soviet Socialist Republics (USSR) to a western-style market system. Russia, being the eighth largest economy in the world, is now planning to join the World Trade Organization (WTO). This is a part of its effort to convert for better opportunities in international trade. This is part of its willingness to take its stand on international obligations, thus joining forces with other countries in the global trade scenario. The ties between the United States and Russia are being supported by the so-called Coalition for US-Russia Trade. This could even help enhance the businesses of both countries by protecting each other within the grounds of their territorial jurisdiction. The Russian plan of joining the WTO strengthens the bond between these two countries as well as Russia's trade relations with other countries as well. Major Trade for US and Russia As Russian economy is diversifying, it had opened its doors to a better and more dynamic financial structure. In fact, its Gross Domestic Product (GDP) and various income levels have been growing through the years, thus its bilateral trade with the United States increased significantly. To date, around 50% of Russian exports to use come from petroleum products while a major portion of the US exports to US come from iron, steel and railway equipment. For the fist seven months of 2008, that is for the period ending July, the United Census Bureau recorded the facts and found out that the total US exports to Russia amounted to $6.44 billion while Russian imports totaled to $19.26 billion. For the year 2006, the following statistics were tracked in the major trade between the two countries:
Big nations as they were, it is always necessary to form trade agreements which will support the welfare of not only both governments but their populace as well. These pacts were made to furthermore provide a proper way of facilitating the entire trading system. They targeted on the flaws and the benefits that US and Russia could gain from each other. Among the trade agreements entered into by these two nations were:
Strong nations as they are, the United States and Russia had their share of erring conflicts. This was always part of any industry especially when both have established quite a name in the entire world economy. They may have shared an agreement on nuclear weapons but at some points, some disparities needed to be conquered. Some of the roots of their disputes came from:
Apparently, these two strong nations would want to remain the highest stance in terms of international business. It is too sad to note that some people in government may have manipulated the minds of others in order to continue the dispute that these countries had several years ago. With this way of thinking, a future Free Trade Agreement between the US and Russia may be impossible. However, since Russia had committed itself to become a member of the WTO, the only thing they could do for now is to join hands with the US. Definitely, this would lead to a more favorable outcome. Positive results are yet to be seen and only when they move the ship together, could Russia and US reach the peak of their success. There should always be that desire for the future to benefit from these powerful countries. US-Russia Trade References
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