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    Chicago Today, Russia Tomorrow

    Thu, 06/28/2012 - 09:45 EDT - US Department of Commerce Blog
    • International Trade Administration
    • RDF10
    • Russia
    • Under Secretary for International Trade Francisco J. Sánchez

    Under Secretary Francisco Sanchez and Chicago U.S. Export Assistance Center Director Julie Carducci present Export Achievement Certificate to BayRu CEO Aaron Block. (Photo Commerce)

    Cross-posted from ITA Tradeology blog by Francisco Sánchez, Under Secretary of Commerce for International Trade
    Today I was fortunate enough to speak at the SMC3 conference in Chicago about the progress we’ve made toward achieving the President’s goal of doubling U.S. exports. SMC3 is
    a supply chain industry association that provides technology to
    shipping and logistics companies across the country, the very same
    companies who ensure the efficient transportation of American exports.
    Each year, the conference brings together representatives from America’s
    most active manufacturing, trucking, rail, shipping, and logistics
    firms.
    The success of U.S. exporters depends in part on U.S. businesses
    being able to quickly and efficiently get their products to market. So
    it was fitting that I gave these remarks in Chicago, home to some of
    America’s most important freight and transportation corridors. According
    to the latest data, the Chicago metropolitan area is the 7th largest
    export market in the U.S. with merchandise shipments totaling nearly $34
    billion.

    Chicago is also home to some of America’s top exporters. I was pleased to honor an innovative company, BayRu, with an Export Achievement Certificate while in Chicago. Their online store, http://www.bay.ru,
    BayRu is one of the fastest growing e-commerce sites in Russia. On
    bay.ru, Russian shoppers can buy a wide range of American consumer goods
    found in catalogues like E-bay and Amazon and then have those products
    shipped to more than 160 cities across Russia and other CIS states.
    But what makes this company unique is that it’s headquartered right
    here…in Skokie, Illinois. BayRu has a unique business model of buying
    American consumer goods here, which are often tough to find in Russia,
    repackaging them, and then exporting those goods for delivery in Russia.
    In January 2011, BayRu partnered with the International Trade
    Administration’s Commercial Service in Chicago and Moscow to gain market
    knowledge and insight. Since partnering with ITA, BayRu’s export sales
    increased by more than $10 million and it plans to create 20 local jobs
    here in the Chicago area.
    BayRu is just another example of an American company being creative,
    growing their business through exports, and creating good-paying jobs
    for Americans in the process. But it is also the prime example of a
    company that would benefit from Russia’s WTO accession and the repeal of
    the Jackson-Vanik Amendment.
    Currently, Russia is set to join the WTO, which will reduce tariffs
    and increase transparency, making it easier for American companies to
    access this large and growing export market. However, Russia is still
    covered by the Jackson-Vanik Amendment, which makes trade conditional
    with certain economies. If this amendment is not repealed, American
    businesses would not be able to enjoy the benefits of more open trade
    with Russia.
    That’s why the Obama administration has called on Congress to repeal
    the amendment and grant Permanent Normal Trade Relations (PNTR) with
    Russia as soon as possible. It makes no sense to let American businesses
    stand on the sideline while our global competitors take advantage of
    Russia’s WTO accession and gain access to a growing market with new
    opportunities for innovative American companies, like BayRu.
    If Congress establishes PNTR with Russia, it will open the door for
    American businesses to expand into Russia and create jobs here at home.
    BayRu will enjoy many real benefits, direct and indirect. Increasing
    trust and awareness of U.S. brands will help drive their growth even
    further and help them create more good-paying jobs in Chicago.
    This is an important issue for many businesses across the country. To
    find out more about what Russia WTO accession and the repeal of
    Jackson-Vanik could mean for business, visit our website where you’ll
    find detailed reports on potential opportunities for U.S. businesses.

    • Original article
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