U.S. Department of Commerce Revokes Russia's Market Economy Status in Antidumping Proceedings
FOR IMMEDIATE RELEASE
November 10, 2022
Contact: Office of Public Affairs
WASHINGTON – Today, the U.S. Department of Commerce announced that it will no longer treat Russia as a market economy in its antidumping (AD) proceedings. This decision gives the United States the ability to apply the full force of the U.S. AD law to address the market distortions caused by increasing interference from the Russian government in their economy.
Based on a balanced evaluation of facts and in line with U.S. law, this decision will ensure that Commerce’s dumping calculations reflect economic realities on the ground and that U.S. industries get the relief from unfair imports that they are entitled to under the law. This decision is an important acknowledgement of the rise of Russian state-influence in their economy, which puts U.S. industries at a disadvantage when trying to compete globally.
Commerce’s analysis found that extensive government involvement in the economy has led to distorted prices and costs in Russia, which do not accurately reflect whether Russian companies are fairly pricing imports into the United States. As a result of today’s decision, in future cases involving imports from Russia, Commerce will apply an alternative methodology to calculate the AD duties on imports from Russia, using market-based prices and costs from a country at a comparable level of economic development that produces comparable merchandise. This will enable Commerce to more effectively address Russian unfair trade practices, which harm U.S. manufacturers
Commerce’s market and non-market economy determinations are based on a thorough evaluation of specific criteria set out in U.S. law: currency convertibility, how wages are determined, the climate for foreign investment, government control of the means of production, government control over firm business decisions, and any other appropriate considerations. In its decision, Commerce found extensive backtracking in these areas, particularly since the invasion of Ukraine. Commerce’s determination is based on an in-depth analysis of research from impartial, third-party sources. Commerce’s decision can be found by referring to case number A-821-835 in Commerce’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS).
About the International Trade Administration
The International Trade Administration (ITA) at the U.S. Department of Commerce is the premier resource for American companies competing in the global marketplace. ITA has more than 2,200 employees assisting U.S. exporters in more than 100 U.S. cities and 80 markets worldwide. For more information on ITA, visit www.trade.gov.