Washington D.C.- US Senators Susan Collins (R-ME) and Angus King (I-ME) joined a bipartisan group of their colleagues in sending a letter to Commerce Secretary Gina Raimondo urging her to reconsider Russia’s status as a market economy within the meaning of the Antidumping Act (AD) of the Customs Act of 1930.
Although the Department of Commerce classified Russia as a market economy in 2002, Russia has increasingly backed away from its commitment to a free market economy. Today, after its invasion of Ukraine, Moscow has taken further steps to centralize control of the Russian economy. Classifying Russia as a non-market economy would give the United States more flexibility to impose additional anti-dumping duties, and it would increase pressure on Russia for its violation of international norms by invading Ukraine.
“Russia imposes restrictions on eight of the eleven types of capital transactions tracked by the International Monetary Fund, and since Russia’s invasion, converting the ruble has only become more difficult. Recently, the Central Bank of Russia announced that it would prevent banks from selling foreign currency to Russians and limit the amount of foreign currency that individuals can withdraw from their accounts. These decrees are explicitly designed to restrict access to foreign currency,” writes the senators.
The Senators continued, “The Russian economy is also marked by state ownership and control of production. According to Russian government sources, the state’s share in the Russian economy could reach 70%. This growth in Russian government economic intervention follows the rapid expansion of state-owned enterprises (SOEs) in Russia. According to the International Monetary Fund, Russia has the third highest number of state-owned enterprises per capita in the world.
In addition to Senators Collins and King, the letter was co-signed by Senators James Lankford (R-OK), Rob Portman (R-OH), Sherrod Brown (D-OH), Mike Braun (R-IN), Todd Young ( R-IN), Chuck Grassley (R-IA), Richard Blumenthal (D-CT), Jack Reed (D-RI), Bill Cassidy (R-LA), Bill Hagerty (R-TN), Cynthia Lummis (R – WY), Steve Daines (R-MT), Lisa Murkowski (R-AK) and Roger Wicker (R-MS).
The full text of the letter can be read here.