Factors required to consider in a “Non-Market Economy” (NME) Decision by the U.S. Department of Commerce

In making an NME-country determination under section 771(18)(A) of the Act, Section 771(18)(B) requires that the U.S. Department of Commerce take into account:

1. The extent to which the currency of the foreign country is convertible into the currency of other countries;

2. The extent to which wage rates in the foreign country are determined by free bargaining between labor and management;

3. The extent to which joint ventures or other investments by firms of other foreign countries are permitted in the foreign country;

4. The extent of government ownership or control of the means of production;

5. The extent of government control over the allocation of resources and over the price and output decisions of enterprises;

6. Such other factors as the administering authority considers appropriate.

Source: Antidumping Duty Investigation of Certain Frozen Fish Fillets from the Socialist Republic of Vietnam – Determination of Market Economy Status, effective July 1, 2001

Decision: “Therefore, based on the preponderance of evidence related to economic reforms in Vietnam to date, analyzed as required under section 771(18)(B) of the Tariff Act of 1930, as amended (“the Act”), we recommend that the Department of Commerce (the “Department”) treat Vietnam as a non-market economy (NME) for the purposes of antidumping (“AD”) and countervailing duty (“CVD”) proceedings, effective July 1, 2001. ”

The Economics of the “Non-Market Economy” Issue: Vietnam Catfish Case Study, Adam McCarthy and Carl Kalapsi, Mekong Economics Ltd., Jan 29, 2003