South Korea Files WTO Challenge of US Penalty Rates in AD/CVD Cases
South Korea recently filed a World Trade Organization challenge to U.S. rules and policies on application of “adverse facts available” in antidumping and countervailing duty cases, the WTO said. In a request for consultations dated Feb. 20, South Korea said…
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the U.S. sets unduly high rates for foreign exporters that the Commerce Department has deemed uncooperative, in effect levying a penalty and disregarding information that could lead to the most accurate rates possible. South Korea also challenges provisions enacted as part of the Trade Preferences Extension Act of 2015 that allow Commerce to use the highest rate possible in cases of exporter non-cooperation, without the need to corroborate the accuracy of the rate. The challenge alleges that these rules and practices, as well as the results of five AD/CVD proceedings where they were applied, violate WTO rules on AD/CVD cases. The request for consultations begins a 60-day period of discussions between the U.S. and South Korea. If that period passes without agreement, South Korea may request a dispute settlement panel to decide the case.