Biggest Beneficiaries of Market Economy Status May Be Russia's Exporters

ByJohn A. McClenahen While the U.S. continues to consider whether to recognize Russia as a full-fledged market economy, the 15-nation European Union is not waiting. In "only a matter of months," following the modification of trade legislation, the EU expects to formalize market economy status (MES) for Russia. Russia's exporters apparently will be the biggest beneficiaries from the new status, with Russian costs and prices being used to calculate anti-dumping margins when sales at less than fair value are alleged. "This will give Russian exporters a much better possibility to have their individual situation accurately reflected," claims the EU. Currently, dumping margins are figured on costs and prices in third-country markets, the so-called analog approach. The EU move also could accelerate Russia's entry in the World Trade Organization (WTO). Market economy status usually is reserved for WTO members. Currently, just over a third of Russia's exports are destined for the EU, and Russia is the EU's sixth largest export market.