EU recognises Russia as market economy country
Nov 12, 2002
Brussels, 7 November 2002. The EU has today formalised the recognition of Russia as a market economy in the context of trade defence by amending the EC's anti-dumping and anti-subsidy laws. This new regime will be applicable to all cases initiated after 8 November 2002, date of entry into force.
The proposal to graduate Russia into the market economy category followed European Commission President Prodi's Declaration during the last EC-Russia summit in May 2002 and is an acknowledgement of the important progress achieved in Russia in respecting market economy principles. Henceforth Russia will be treated on an equal footing with all other market economies in anti-dumping investigations.
In practical terms, this means that, instead of using proxy costs and prices from a third country, Russian companies' own costs and prices will be used for the purpose of calculating dumping margins. It equally implies that Russia will be subject to anti-subsidy provisions applicable to market economy countries.
The new regime will be applicable to all cases initiated after the entry into force of the modification, 8 November 2002, irrespective of the investigation period selected.
The proposal to graduate Russia into the market economy category followed European Commission President Prodi's Declaration during the last EC-Russia summit in May 2002 and is an acknowledgement of the important progress achieved in Russia in respecting market economy principles. Henceforth Russia will be treated on an equal footing with all other market economies in anti-dumping investigations.
In practical terms, this means that, instead of using proxy costs and prices from a third country, Russian companies' own costs and prices will be used for the purpose of calculating dumping margins. It equally implies that Russia will be subject to anti-subsidy provisions applicable to market economy countries.
The new regime will be applicable to all cases initiated after the entry into force of the modification, 8 November 2002, irrespective of the investigation period selected.