FACT SHEET

Preliminary Agreement Suspending the Dumping Investigation on
Imports of Cold-Rolled Steel from the Russian Federation

On December 10, 1999, the Department of Commerce and Ministry of Trade of the Russian Federation initialed an agreement to suspend the ongoing antidumping investigation regarding exports of cold-rolled steel from the Russian Federation into the United States. This agreement addresses concerns about the dumping of Russian cold-rolled steel in the United States and ensures that there is no undercutting or suppression of domestic prices, as required by U.S. law.

The proposed suspension agreement includes a quota and a price provision:

• Quota. The suspension agreement establishes an initial quota for cold-rolled steel of

340,000 MT per year (the same level established in the Comprehensive Agreement on Certain Steel Products from the Russian Federation), with provisions for modest growth and adjustments based on changes in U.S. domestic consumption.

• Price. The suspension agreement also establishes a minimum price of $345 FOB for the primary product, at or above which Russian steel must be sold in the United States.

Prior to concluding these negotiations with the Government of the Russian Federation, the Department will solicit and review comments from interested parties, including U.S. domestic steelmakers.

• Product Description. The merchandise subject to this proposed suspension agreement is certain cold-rolled flat-rolled carbon-quality steel products. The technical language describing the scope of the initialed agreement is included in the preliminary determination notice that was published in the Federal Register.
  
  
• Background. Based on a petition filed by U.S. domestic steel producers and workers' unions, on June 21, 1999, the Commerce Department initiated an antidumping investigation on imports of cold-rolled steel from Russia. On July 16, 1999, the United States International Trade Commission made a preliminary finding of threat of material injury with respect to imports of this product from the Russian Federation. On November 2, 1999, the Commerce Department announced its affirmative preliminary determination, finding dumping margins of 177.59 percent. Currently, the final determination is scheduled for January 15, 2000.