Russia
In June 2002, the U.S. Department of Commerce (DOC) announced that it was revoking Russia's non-market economy (NME) status under U.S. anti-dumping law. The DOC found that Russia has operated as a market-economy country, effective April 1, 2002, and that this finding will be effective for all future administrative proceedings.
This decision was made at the request of two Russian companies, Novolipetsk Iron and Steel Corp. and JSC Severstal, and was supported by the Russian government. In conjunction with reviewing Russia's non-market economy status, the DOC was required to take into account six statutory factors: (1) the degree of currency convertibility, (2) free wage rate determination, (3) foreign investment, (4) government ownership or control of production, (5) government ownership over the allocation of resources, and (6) other appropriate factors.
The DOC review found that: the Russian ruble is convertible for investment purposes, fully convertible for trade purposes, and the exchange rate is market-based; wages are market-based; foreign investment is permitted and encouraged; prices for the vast majority of goods and services are not subject to price controls and respond to the forces of market supply and demand; Russian privatization has been comprehensive and has placed the great majority of industry, property, and assets in the hands of the private sector. The review also noted concern that the pace of industrial restructuring has recently been slow, banking reforms have lagged, and energy prices remain regulated.
The impact of the ruling on Russia's market economy status is that the calculation of dumping for products from Russia in future anti-dumping proceedings will be determined by using a normal value (market economy) methodology based on prices and costs within Russia, rather than a factor valuation (non-market economy) methodology based on costs in a similar "surrogate" market economy country.
This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)
Taken from the report by export.gov
More on Russia:
RUSSIA FACT SHEET
U.S. - Russia Trade Highlights
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