[Federal Register Volume 68, Number 43 (Wednesday, March 5, 2003)]
[Notices]
[Pages 10444-10445]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-5187]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-451-801]


Final Results of Inquiry Into Lithuania's Status as a Non-Market 
Economy Country for Purposes of the Antidumping and Countervailing Duty 
Laws Under a Changed Circumstances Review of the Solid Urea Order 
Against Lithuania

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

ACTION: Final results.

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EFFECTIVE DATE: January 1, 2003.

FOR FURTHER INFORMATION CONTACT: George Smolik, Office of Policy, 
Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington, DC 20230; telephone: (202) 482-1843.
    Background: The Department has treated Lithuania as a non-market 
economy (``NME'') country in past antidumping duty investigations and 
administrative reviews. See, e.g., Urea From the Union of Soviet 
Socialist Republics; Final Determination of Sales at Less Than Fair 
Value, 52 FR 19557 (May 26, 1987); and, Solid Urea from the Union of 
Soviet Socialist Republics; Transfer of the Antidumping Duty Order on 
Solid Urea From the Union of Soviet Socialist Republics to the 
Commonwealth of Independent States and the Baltic States and 
Opportunity to Comment, 57 FR 28828 (June 29, 1992). A designation as a 
NME remains in effect until it is revoked by the Department. See 
section 771(18)(C)(i) of the Act.
    On May 15, 2002, the Department received a letter from the Embassy 
of Lithuania requesting a review of Lithuania's status as NME country. 
On June 5, 2002, the GOL submitted a document supporting its request 
for market economy status. On August 20, 2002, the Department received 
a letter from the Embassy of Lithuania requesting that the Department 
review Lithuania's NME status under a changed circumstances review of 
the solid urea order against Lithuania. In response to this latter 
request, the Department initiated an inquiry into Lithuania's status as 
an NME in the context of a changed circumstances review of the solid 
urea order against Lithuania pursuant to sections 751(b) and 
771(18)(C)(ii) of the Act.
    On September 10, 2002, the Department published a Notice in the 
Federal Register requesting comments from the public concerning this 
matter. See Notice of Initiation of Inquiry Into the Status of 
Lithuania as a Non-Market Economy Country for Purposes of the 
Antidumping and Countervailing Duty Laws Under a Changed Circumstances 
Review of the Solid Urea Order Against Lithuania, 67 FR 57393, 
September 10, 2002. The comments due date was extended to November 8, 
2002. Rebuttal comments were due no later than December 9, 2002.

SUMMARY: The Government of Lithuania (``GOL'') has implemented 
comprehensive economic and institutional reforms aimed at establishing 
a market economy since 1991. See memorandum to Faryar Shirzad from 
Barbara Mayer et al, Decision Memorandum Regarding Lithuania's Status 
as a Non-Market Economy Country for Purposes of the Antidumping and 
Countervailing Duty Law under a Changed Circumstances Review of the 
Solid Urea Order Against Lithuania (February 28, 2003). Lithuania's 
currency, the litas, is fully convertible for trade purposes and 
effectively convertible for investment purposes. Wages are freely 
negotiated between employees and management. Workers have the right to 
unionize and engage in collective bargaining, and employers are free to 
transfer or fire workers. Foreign direct investment has been encouraged 
by the GOL in almost all sectors of the economy. Foreign investors 
compete on a level playing field with domestic investors. Lithuania's 
efforts toward privatizing the economy have been wide-spread and 
effective. Seventy-five percent of Lithuania's gross domestic product 
is in the hands of the private sector with only a few large state-owned 
enterprises remaining. Land, including land for agricultural use, is 
under private ownership, and foreigners are permitted to purchase land 
for non-agricultural use. The GOL has eliminated its previous role as 
an allocator of resources by completely privatizing the commercial 
banking sector and eliminating price controls. Additionally, Lithuania 
has been a member of the World Trade Organization since May 2001 and is 
slated to join the European Union at the beginning of 2004.
    Notwithstanding, several areas of Lithuania's economy require 
additional

[[Page 10445]]

reform. Foreign direct investment remains relatively low and the 
commercial banking sector does not play a significant role in lending 
to the private sector. In particular, small- and medium sized 
enterprise growth is currently hampered by the reluctance of banks to 
provide credit.
    Overall, however, Lithuania has made far-reaching changes in the 
structure of the economy. Therefore, based on the evidence on reforms 
in Lithuania to date, analyzed as required under section 771(18)(B) of 
the Act, the Department determines that (1) revocation of Lithuania's 
NME country status under section 771(18)(A) is warranted, and (2) 
Lithuania has operated as a market-economy country since January 1, 
2003. Lithuania producers and exporters will be subject, therefore, to 
the antidumping rules applicable to market economies with respect to 
the analysis of transactions occurring after January 1, 2003. In 
addition, the U.S. countervailing duty law will apply now to Lithuania 
where the proceeding at issue involves an adequate period of 
investigation after this effective date.

    Dated: February 27, 2003.
Faryar Shirzad,
Assistant Secretary for Import Administration.
[FR Doc. 03-5187 Filed 3-4-03; 8:45 am]
BILLING CODE 3510-DS-P