The United States sold $5.4 billion worth of exports to Russia in 2009, 42.3% less than in 2008. Over that sample period, American purchases of Russian imports declined by 31.9% to $18.2 billion.
Overall, the U.S. trade deficit with Russia was $12.8 billion – a 26.4% improvement over the $17.4 billion deficit in 2008.
U.S. Export Growth Industries by Product
Lower prices for Russian oil exports partly explain the improvement in America’s trade balance with Russia.
Just as important is the fact that Russia is a developing country that needs a wide range of American products.
Of the 4,847 different product categories that the U.S. shipped to Russia during 2009, 42% or 2,028 of these exports posted trade surpluses against comparable Russian imports.
Top 10 U.S. Export Growth Industries for Russia
American exports of frozen chicken and pork generated a combined trade surplus in 2009 of almost $900 million for the U.S.
America remains the world leader in supplying aerospace products, although aircraft and spacecraft exports to Russia were down by 14.3%.
Other top U.S. exports to Russia target specific industries. For example, U.S. boring or sinking machinery benefits from demand in Russia’s mining industry while American-made bulldozers and cranes are generating higher export sales to Russian construction companies.
Listed below are the top 10 U.S. exports to Russia that produce the greatest trade surpluses. For each export product category, the corresponding harmonized tariff system code is shown within brackets.
- Frozen chicken meat (code 020714) … US$743.6 million trade surplus (down 6.8% from 2008)
- Aircraft and spacecraft including parts (880000) … $455.3 million (down 14.3%)
- Parts for boring or sinking machinery (843143) … $252 million (down 36.1%)
- Frozen pork (020329) … $134.5 million (down 48.2%)
- Electric generating sets (850239) … $102.3 million (up 21.5%)
- Parts and attachments for bulldozers and cranes (843149) … $101.1 million (up 39.4%)
- Gas turbines (841182) … $77.4 million (up 111.7%)
- Parts for steam turbines (840690) … $60.1 million (up 165.4%)
- Electrical appliances including air humidifiers (847989) … $55.6 million (up 4.3%)
- Chain saws (846781) … $55.4 million (down 57%).
American exporters also have a $102.3 million competitive advantage in supplying electric generating sets to Russians.
Electrical appliances exemplify the diversity of U.S. export advantages over Russia. Exports to Russia in this category include made-in-USA air humidifiers, dehumidifiers, floor polishers, trash compactors and other electrical appliances.
A niche-market product, chain saws are also among the top 10 U.S. export growth industries that service Russian importers.
Fastest-Growing U.S. Export Growth Industries for Russia
Modern steam turbines generate about 80% of the world’s electric power. American steam turbine makers have only been selling their exports in Russia since 2008, yet have doubled America’s trade surplus for this export category after just 2 years.
Gas turbines comprise another top U.S. export growth industry popular with Russian importers. Also called combustion turbines or gas rotary engines, gas turbines are used as jet engines and also as more heavily constructed electrical generators.
- Parts for steam turbines … U.S. trade surplus up 165.4% from 2008
- Gas turbines … up 111.7%
- Parts and attachments for bulldozers and cranes … up 39.4%
- Electric generating sets … up 21.5%
- Electrical appliances including air humidifiers … up 4.3%.
America’s heavy machinery makers built their sales to Russia by almost 40% in 2009, showing the highest gains in exported attachments for bulldozers and cranes since 2005.
Another energy-generating product, electric generating sets were also among the fastest-growing exports that resulted in a U.S. trade surplus with Russia.
U.S. Export Trade Opportunities in Russia
Below are specific examples of trade opportunities arising from export categories where the U.S. already has proven competitive advantages over Russian imports.
The U.S. has a significant competitive advantage in exporting frozen chicken and pork meat to Russia. In addition to building on those export sales, American entrepreneurs could experiment with introducing soybean and vegetarian tofu products into the Russian market.
American has a proven history of developing exports of energy generators to Russia. Given Russia’s demand for these types of goods, the U.S. is in a strong position to build and satisfy Russian demand for electrical generators that run on alternative energy sources including solar panels and wind-powered products.
As for electrical appliances including humidifiers and even niche products like chain saws, American entrepreneurs could develop a parts and accessory export supply program for Russia. Part of that initiative could include special warranty repairs and replacement deals for Russian imports from the U.S.
Sources: U.S. Census Bureau Foreign Trade Statistics, United States International Trade Commission’s Interactive Tariff and Trade DataWeb and United States International Trade Commission Harmonized Tariff Schedule.
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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