Russia could defend its market economy status at WTO, says AmCham

Russia would be able to challenge any U.S. move to strip Russia of its market economy status at the World Trade Organisation (WTO), the American Chamber of Commerce in Russia said on Monday.

The U.S. International Trade Administration has said it would gather information by the end of August to decide whether to treat Russia as a market economy for the purposes of its anti-dumping duty law.

It announced an investigation on July 30 into Russia’s market economy status, citing complaints about sales of Russian urea-ammonium nitrate fertiliser in the United States “at less than fair value”.

“If the decision, in the end, turns out to be unfavourable for Russia, it can challenge it in the WTO,” the American Chamber of Commerce in Russia told Reuters by email.

“In general, trade and economic relations between the United States and Russia remain the healthiest part of relations between the two countries, and we are confident that each party is interested in preserving it,” it said in a Russian-language comment.

The WTO had no immediate comment.

Moscow’s relations with Washington sharply deteriorated in 2014 after the West imposed sanctions on Russia for annexing Crimea from Ukraine. Since then, concern over sanctions has created economic headwinds and battered the rouble, which has in turn fanned inflation and led to massive capital outflows.

Anatoly Aksakov, head of the financial committee in the lower house of parliament, said the U.S. probe was politically-motivated, Interfax news agency reported.

It was unclear what consequences the U.S. decision to change Russia’s economy status could have. The Russian economy ministry did not reply to a request from comment.

“The U.S. accounts for around 4% of Russia’s foreign trade versus some 40% with EU countries. So special attention should be paid to the EU’s behaviour – to whether they will follow the example of the U.S. or not,” said Natalia Orlova, chief economist at Alfa Bank in Moscow.

The United States granted Russia market economy status in 2002, an essential step for Russia’s admission to the WTO in 2012.

The United States treats 11 countries as non-market economies, comprising Armenia, Azerbaijan, Belarus, China, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Uzbekistan and Vietnam.

Source: Hellenic Shipping News