US and Russia resolve matters on slab and plate imports

US and Russia resolve matters on slab and plate imports

According to the announcement by the US Department of Commerce (DOC) on Tuesday, the Bush administration signed an agreement with Russia allowing the country to ship additionally about 200'000 tons of slab steel through 2004, into the US. At the stage of implementation of Section 201 safeguard measures in March 2002, an overall slab quota of 5.4 million tons were allowed without paying additional tariffs, approximately 1.2 million ton of which was allocated for Russia. However, Russia was not in a position to fully utilize this quota due to a separate Comprehensive Trade Agreement on Steel with the US dated 1999, allowing shipment of only 1 million tons of slabs into the US. This new agreement serves as an amendment to the 1999 Comprehensive Trade Agreement. Such increase of slab shipments from Russia will increase capacity utilization and employment. Furthermore, the two countries initialed an agreement in order to extend the current five year deal to expire next month. Russian producers Severstal, Magnitogorsk and Nosta are involved in the procedures. The agreement eliminates quota but asks for Russian producers to submit detailed cost information every six months, enabling the US DOC calculate the minimum price that Russian plate can be sold at in the US. This agreement reflects Russia's market economy status under the US anti-dumping laws. US DOC Senior Farhar Shirzad also expressed their appreciation to receive Russia's support against worldwide government subsidization of the steel industry and its leading position by putting forth a plan to restructure its own steel industry. Finalisation of the agreement for plates will be finalized during the OECD meetings to take place next month.