KFTA Requirements for AD/CV Investigations

The International Trade Administration has issued a notice highlighting the antidumping and countervailing (AD/CV) duty-related provision of the U.S.-Korea Free Trade Agreement (KFTA), which took effect on March 15, 2012. Article 10.7 of the KFTA, which covers AD/CV duties, requires, among other things: (1) notification to the other party after receipt of a petition; and (2) the opportunity for the other party to take action on price and/or quantity of subject merchandise, after both initiation and the preliminary determination, in order to reach a settlement. This provision is not subject to dispute settlement, and only the notification requirements are binding.