[Federal Register Volume 68, Number 43 (Wednesday, March 5, 2003)]
[Notices]
[Page 10445]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-5188]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-447-801]


Final Results of Inquiry Into Estonia'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 Estonia

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 Estonia as an 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 
an NME remains in effect until it is revoked by the Department. See 
section 771(18)(C)(i) of the Act.
    On July 10, 2003, the Department received a letter from the 
Republic of Estonia Ministry of Foreign Affairs requesting a review of 
Estonia's status as a NME country. In the letter, the Government of 
Estonia submitted documentation supporting its request for market 
economy status. The Department subsequently received a letter from the 
Ambassador of Estonia to the United States dated September 20, 2002, 
requesting a review of Estonia's NME status under a changed 
circumstances review of the antidumping duty order on solid urea from 
Estonia. In response to this latter request, the Department initiated a 
changed circumstances review in order to examine whether Estonia is 
still a NME country for purposes of the antidumping and countervailing 
duty laws, pursuant to sections 751(b) and 771(18)(C)(ii) of the Act.
    On October 16, 2002, the Department published a Notice in the 
Federal Register requesting comments from the public concerning this 
matter. See Notice of Initiation of a Changed Circumstances Review of 
the Antidumping Duty Order on Solid Urea From Estonia, 67 FR 63886, 
October 16, 2002. Comments were due no later than December 2, 2002 and 
rebuttal comments were due January 02, 2003. The Government of Estonia 
(``GOE'') submitted comments supporting its request to revoke Estonia's 
NME status. No comments were received by the Department opposing the 
GOE's request.

SUMMARY: The GOE has implemented economic and institutional reforms 
since regaining its independence in 1991. The reforms initiated by the 
GOE specifically relating to the factors examined by the Department 
under section 771(18)(B) are comprehensive. See memorandum to Faryar 
Shirzad from Shauna Lee-Alaia et al, Decision Memorandum regarding 
Estonia'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 Estonia (February 28, 2003).
    The Estonian kroon, established in 1992, is freely convertible for 
both current and capital account purposes. There are no restrictions on 
repatriation of earnings. The central bank sets monetary policy and 
regulates private-sector banks, independent of the government. Wages 
are freely negotiated between employees and management. The right to 
unionize and bargain collectively is guaranteed by law. Foreign and 
domestic investors are treated equally. In fact, Estonia enjoys one of 
the highest foreign direct investment per capita rates in the region. 
Privatization of most medium-sized and large industrial enterprises is 
complete, with 80 percent of gross domestic product in the hands of the 
private sector. Private property rights are respected in Estonia. Both 
foreigners and Estonians are able to own agricultural and non-
agricultural land. Entrepreneurship is encouraged by the GOE and 
adequately protected de jure and de facto. The financial sector, 
predominately foreign owned and completely privately owned, acts as a 
financial intermediary between investors and savings. Consumer prices 
were liberalized in 1992. As of mid 2002, Estonia had closed 26 of 31 
chapters of the acquis communitaire and is expected to accede to the 
European Union in 2004. Estonia has been a member of the World Trade 
Organization since November 1999.
    Overall, Estonia has made far-reaching changes in the structure of 
its economy resulting in a successful transition to a market economy. 
Under section 771(18)(B) of the Act, the U.S. Department of Commerce 
determines that (1) revocation of Estonia's NME country status under 
section 771(18)(A) is warranted, and (2) Estonia has operated as a 
market-economy country since January 1, 2003. Estonia 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 Estonia 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. 03-5188 Filed 3-4-03; 8:45 am]
BILLING CODE 3510-DS-P