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November 22, 2002



US Announces Market Economy Status for Russia

The United States has determined that Russia has successfully completed the transition to a market economy and market economy status for Russia started retroactively from April 1, the Commerce Department announced in Washington Thursday.

"I congratulate Russia for their designation as a market economy under US law. This decision made by the Commerce Department was made in accordance of the law and reflects the tremendous economic changes that Russia had made over the last decade," said US Commerce Secretary Don Evans.

As a non-market economy, Russia has been subject to the force of US countervailing duty laws -- which allow punitive measures to be taken against countries that unfairly subsidize their industries -- because it is impossible to determine where to draw the line on unfair subsidies.

The determination will give Russian companies more protection to fight off charges that they are selling products in the United States at unfairly low prices, a change that Russian government estimated could boost its exports to the United States by US$1.5 billion annually.

On the other hand, market economy status is seen as a step towards accession to the World Trade Organization, a goal of both Russian President Vladimir Putin and President George Bush.

Any anti-dumping cases brought against Russia would use Russian prices for determining punitive tariff levels. As a non-market economy, comparable surrogate figures are used.

Earlier in Moscow, Interfax reported that US President George W. Bush had informed Putin that the United States now considers Russia to be a market economy.

( June 7, 2002)

In This Series
Bush, Putin Summit Moves to Saint Petersburg

US, Russia Sign Pact on Nuclear

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