The United States launched an investigation into the compliance of the Russian economy with market status
As part of an investigation into the underestimation of the fair value of solutions of ammonium nitrate of urea originating from the Russian Federation, the US Department of Commerce found that there was sufficient evidence to investigate the issue of continuing to view Russia as a country with a market economy. This is stated in US Department of Commerce statement published in the official US government Federal Register.
The US Department of Commerce refers to the tariff law of 1930, which sets out the criteria for classifying a country as a country with a market economy. The law contains 6 criteria, the compliance with which makes it possible to recognize the market economy. If the country's economy does not meet some criterion, then the authorized body (that is, the Ministry of Commerce) can qualify the country as a non-market one.
The list of six criteria is as follows:
- the degree of convertibility of the currency of a foreign state into the currency of other countries;
- the extent to which wage rates in a foreign country are determined through free negotiation between workers and management;
- the extent to which joint ventures or other investments by firms from other foreign countries are permitted in the foreign country;
- the degree of state ownership or control of the means of production;
- the degree of state control over the allocation of resources and over decisions of enterprises on product prices and output volumes;
- other relevant factors as deemed necessary by the notified body.
The United States has awarded Russia the status of a country with a market economy since April 1, 2002.