The decision was made by the US Department of Commerce.
The United States will no longer consider Russia a country with market economy, the US Department of Commerce said on Thursday. According to the agency, the status thus acquired by Russia 20 years ago, which limited the calculation of anti-dumping duties on Russian goods, has been canceled.
Russia has become 12 on the list of countries that the US classifies as countries with a non-market economy for the purpose of calculating the anti-dumping tariff . The list also includes China, Vietnam and former republics of the Soviet Union.
Determining the status of a market economy is based on an assessment of such criteria as currency convertibility, state control over the means of production, and the climate for foreign investment. According to the Ministry, manual management of the country's economy by the government of the Russian Federation led to the distortion of prices and costs. Therefore, it is impossible to establish how fairly Russian companies set prices for imports to the United States.
“This decision gives the United States the opportunity to apply the full force of US anti-dumping law to address the market distortions caused by the Russian government's increased interference in its economy,” the US Department of Commerce said in a statement.
From now on, Russia will face significantly higher import duties duties So far, anti-dumping duties against Russia have focused on sectors that make up a large portion of its non-energy supplies to the United States: metals, minerals, iron and steel, and chemicals.
This change could lead to higher tariffs on some Russian imports, making it more difficult for Russian companies to sell products such as steel and aluminum in the US. However, the impact will be limited, given that US imports from Russia have declined sharply in recent months due to trade restrictions and other sanctions.
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According to data from the Ministry of Commerce, from January to September, the United States imported Russian goods worth $12.5 billion, which is almost twice as much as a year earlier.
In March, the president Biden called for stripping Russia of so-called most-favored status, which Congress overwhelmingly approved. Depriving Russia of this status led to the fact that imports from Russia received higher tariffs and trade barriers.
Read also: What Russian goods did Western markets get rid of
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The USA granted Russia the status countries with a market economy in 2002. This became a key step for the country's entry into the World Trade Organization.
