[Federal Register Volume 71, Number 37 (Friday, February 24, 2006)]
[Notices]
[Pages 9520-9521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-2673]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-823-812]


Final Results of Inquiry Into Ukraine's Status as a Non-Market 
Economy Country.

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

ACTION: Final Results

-----------------------------------------------------------------------

SUMMARY: Ukraine has implemented economic and institutional reforms 
since gaining independence in 1991. The government of Ukraine (``GOU'') 
has undertaken substantial reforms relating to the factors examined by 
the Department of Commerce (``the Department'') under section 
771(18)(B) of the Tariff Act of 1930, as amended (``the Act''). See 
memorandum to David Spooner from Lawrence Norton, Shauna Lee-Alaia, and 
Anthony Hill, Decision Memorandum Regarding Ukraine's Status as a Non-
Market Economy Country for Purposes of the Antidumping Duty Law Under a 
Changed Circumstances Review of the Antidumping Duty Order on Carbon 
and Certain Alloy Steel Wire Rod from Ukraine (February 16, 2006) 
(``Decision Memorandum'').
    Based on the preponderance of evidence on reforms in Ukraine to 
date, analyzed as required under section 771(18)(B) of the Act, the 
Department determines that (1) revocation of Ukraine's non-market 
economy (``NME'') status under section 771(18)(B) of the Act is 
warranted, and (2) the effective date of this decision is February 1, 
2006. Accordingly, Ukrainian producers and exporters will be subject, 
to the antidumping rules applicable to market economy countries with 
respect to the analysis of transactions occurring on or after February 
1, 2006.

EFFECTIVE DATE: February 1, 2006.

FOR FURTHER INFORMATION CONTACT: Lawrence Norton or Shauna Lee-Alaia, 
Office of Policy, Import Administration, U.S. Department of Commerce, 
14th Street and Constitution Avenue, NW, Washington DC, 20230; 
telephone: 202-482-1579 or 202-482-2793, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department has treated Ukraine as an NME country in all past 
antidumping duty investigations and administrative reviews. See, e.g., 
Final Determination of Sales at Less Than Fair Value: Carbon and 
Certain Alloy Steel Wire Rod from Ukraine, 67 FR 55785 (August 30, 
2002); Final Determination of Sales at Less Than Fair Value: Certain 
Hot-Rolled Carbon Steel Flat Products from Ukraine, 66 FR 50401 
(October 3, 2001); and Final Determination of Sales at Less Than Fair 
Value: Steel Concrete Reinforcing Bars from Ukraine, 66 FR 1857 (April 
11, 2001). 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 April 2, 2005, the GOU's Ministry of Economy and European 
Integration requested that the Department conduct a review of Ukraine's 
status as a NME country within the context of a changed circumstances 
review of the antidumping duty order on carbon and certain alloy steel 
wire rod from Ukraine. In response to this request, the Department 
initiated a changed circumstances review in order to determine whether 
Ukraine should continue to be treated as a NME country for purposes of 
the antidumping law, pursuant to sections 751(b) and 771(18)(C)(ii) of 
the Act. See Initiation of a Changed Circumstances Review of the 
Antidumping Duty Order on Carbon and Certain Alloy Steel Wire Rod from 
Ukraine, 70 FR 21396 (April 26, 2005).
    In its notice of initiation, the Department invited public comment 
on Ukraine's ongoing economic reforms. Extensive initial and rebuttal 
comments were received on July 11, and August 31, 2005, respectively. 
On January 12, 2006, the Department requested further comment on 
Ukraine's reforms and extended the deadline for completion of the 
proceeding to February 16, 2006. See Changed Circumstances Review of 
the Antidumping Duty Order on Carbon and Certain Alloy Steel Wire Rod 
from Ukraine: Opportunity to Comment on the Status of Ukraine as a Non-
Market Economy Country and Extension of Final Results 71 FR 2904 
(January 18, 2006). These comments have been made available to the 
public on the Import Administration Web site at the following address: 
http://ia.ita.doc.gov/. In addition, the Department has compiled and 
analyzed information regarding Ukrainian economic reforms from 
independent third-party sources such as the International Monetary 
Fund, the World Bank, and the European Bank for Reconstruction and 
Development.
    Ukraine's currency, the hryvnia, is freely convertible on the 
current account and is subject to market forces. Employees and 
management may freely negotiate wages, and workers have the right to 
unionize and engage in collective bargaining. Foreign direct investment 
is encouraged by the GOU in almost all sectors of the economy, and the 
law afford foreign and domestic investors equal treatment. Ukraine's 
efforts toward privatizing the economy have been substantial. At least 
65 percent of Ukraine's gross domestic product is in the hands of the 
private sector, and there are relatively few large state-owned 
enterprises remaining. Land, including land for agricultural use, is 
privately held, and foreign investors may own the land on which their 
investments are located. The GOU has withdrawn from its previous role 
as the primary resource allocator in the economy by privatizing 
virtually the entire banking sector and eliminating most price 
controls. Additionally, Ukraine is in the process of joining the World 
Trade Organization.
    Notwithstanding Ukraine's substantial progress, several aspects of 
Ukraine's economy require additional reform. Foreign direct investment, 
while increasing, has been very low. Ukraine should enhance the 
mechanisms for trade in land, particularly agricultural land. Ukraine 
continues to have a very difficult business environment, due to 
excessive government regulation, outdated legislation and corruption. 
In particular, small and medium-size enterprise growth and increases in 
foreign investment are hampered by Ukraine's difficult business 
environment.
    Overall, though, given the significant reforms discussed above and 
in the Decision Memorandum, Ukraine warrants designation as a market-

[[Page 9521]]

economy country, effective February 1, 2006.

    Dated: February 16, 2006.
Joseph A. Spetrini,
Acting Assistant Secretary for Import Administration.
[FR Doc. E6-2673 Filed 2-23-06; 8:45 am]
BILLING CODE 3510-DS-S