Claiming that Moscow’s unfair trade practices harm US industries and manufacturers, which are struggling to compete with Russian companies in domestic and global markets, the US Department of Commerce has announced it will no longer treat Russia as a market economy in its antidumping proceedings.
The US designated Russia a market economy in 2002, helping it to eventually join the World Trade Organization one decade later.
The statement the Commerce Department issued on Thursday notes that this will enable Washington to unleash the full force of the US antidumping law to address the market distortions the increasing Russian government’s interference in their economy caused and put US industries at a disadvantage when trying to compete globally.
Since the alleged interference has led to distorted prices and costs in Russia – which do not accurately reflect if Russian companies are fairly pricing imports into the US – the Commerce Department announced it will now calculate the duties and fees on future imports from Russia by applying the alternative methodology.
The latest decision will also ensure that American industries get the relief from unfair imports they’re entitled to, the Department added, stressing that it based its conclusions on in-depth research analysis from impartial, third-party sources.
When making its market and non-market economy determinations, Commerce Department is implementing a thorough evaluation of specific criteria the US law sets out such as currency convertibility, how wages are determined, foreign investment’s climate, government control of the means of production and firm business decisions, as well as any other appropriate considerations.
Commenting on the US Commerce Department, Kremlin spokesperson Dmitry Peskov emphasized that Washington’s declaration in no way contributes to the stabilization of global markets, warning that it not only puts pressure on Moscow but will have repercussions globally.
Peskov said that Moscow can only see this decision as a continuation of the US destructive line of action to put pressure on Russia in all possible directions.
At the same time, he reiterated that the US-motivated Western sanctions not only have failed to destabilize the Russian economy but have caused significant turbulence for the European economy above all because the US is more resilient although Americans also suffer from inflation and the chaos in the energy market.
Russian Ambassador to the US Anatoly Antonov called the Commerce Department’s move illogical and accused the US of further deepening the imbalances in world markets caused by numerous illegitimate unilateral barriers.
Earlier this year, Washington suspended normal trade relations with Russia to punish Moscow over the conflict in Ukraine.
Be the first to comment