Relationship Between Non-Tariff Barriers and Trade Volume

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Relationship between non-tariff barriers and trade volume

Russia and the United States have a long and interesting relationship politically and economically in the 20th century to which continues today. One of the most important economic relationships between Russia and the United States is the U.S. poultry export market to Russia. Below, I will evidence how removal of non-tariff barriers during the mid 90’s affected the underlying trade volume and quality of the poultry market in Russia for the better.

Before the eventual downfall of the USSR, international trade made up a very small part pf the overall Soviet economy. For example, in 1985 exports and imports worldwide amounted to 4% of total gross national product. After all, the logic of USSR was to be self-sustaining under their centrally planned economy. Most of the foreign trade that the Soviet Union did do was with other communist type countries such as China, Yugoslavia, Laos, North Korea, and Cambodia. Soviet Union trading with the United States was stark at best, peaking in 1979 at $4.5 billion (total imports / exports). The main exports for the Soviet Union to the United States were chemicals, metals, oil, fur, alcohol, and fish while the US exported agricultural grain and industrial equipment. The political nature and tension between the US and Soviet Union were well known from nuclear arms containment to human rights to political ideologies. Because of this, the USSR had a very silent but understood non-tariff barrier agreement with the Western Industrialized countries, particular the United States. As shown by the table below various dates before the dissolution of the USSR, trading between the U.S. and Soviet Union were in extremely low amounts.

|USSR and US |1979 |1987 | |Billions[1] | | | |Total Trade |4.5 |2 |

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