President Biden is in talks with G7 to discuss the removal of Russia from the WTO as ‘most favoured nation.’
The rest of the world is trying to stunt Russia’s growth in any way possible as the assault on Ukraine continues, including stripping Russia of its trade status.
Biden is reportedly on a mission to hold Russia accountable for their unjustified attacks on its neighbour state.
If Russia’s trade status is stripped, the US and its allies will be able to impose tariffs on the imports from Russia.
With higher tariffs coming and sanctions already imposed, the Russian economy is facing a “deep recession”, said Kristalina Georgieva, Managing Director and Chair, IMF.
Russia is currently facing sanctions, oil and gas bans and removal from the SWIFT.
CNN reported that Biden would need Congress to support the removal of Russia’s ‘Permanent Normal Trade Relations’, which Congress has already signalled.
Every country in agreement would have to review their own processes regarding their trade status with Russia.
Russia and US Trade
In 2021, the trade deficit for the US was $23bn, according to the United States census.
In 2022, the US has so far imported $1.9bn worth of Russian goods and exported $397m.
Russian imports were heavily hit by the recent ban of oil and coal. In 2021, $16bn was spent on the import of the oil, gas, coal and petrol.