Suspension Agreement Between Russia and U.S. Terminated
The United States Department of Commerce released a notice in October 2014 that issued the termination of a long-standing suspension agreement between the U.S. and Russia, and imposed anti-dumping duties on hot rolled steel products from the Russian Federation. After the Department reviewed the agreement, a notice was sent to Russia’s Ministry of Economic Development to cease the agreement. The termination was expected to go into effect 60 days after the notice was released.
As a result of the outcome, Russian steel makers would be met with anti-dumping duties. Severstal, a large operator in the steel and mining industries, would be required to pay duties of 73.59% while all other companies in Russia’s steel industry will face duties of 184.56%.
Due to a clause that states either Russia or the United States has the power the end an agreement at any time without any explanation, the U.S Department of Commerce was able to reach their final decision on the investigation. The decision came after domestic steelmakers started a campaign in July to end the agreement between Russia and America. This lead to an administrative review process by the Department that was scheduled to be released in April but the agency decided to cancel the agreement before the results were disclosed.