"Korea has requested WTO consultations with the United States concerning the use of ‘facts available' by US investigating authorities in anti-dumping and countervailing investigations," The World Trade Organization (WTO) said in a press release on Tuesday.
Countervailing duties are trade import duties introduced under WTO rules intended to neutralize the negative effects of subsidies. Such duties are imposed after an investigation finds that a foreign country subsidizes its exports, impacting the importing country's producers.
Under the Tariff Act of 1930, US industries may forward a petition for relief from imports that are sold at less than fair value in the United States or which benefit from subsidies provided through foreign government programs, according to the US International Trade Commission.
South Korea has challenged the US law, as well as regulations that allow the Commerce Department to use adverse facts in its anti-dumping and countervailing investigations, especially against certain products from South Korea, the release said.
The United States has 60 days to settle the issue, after which South Korea may ask the WTO to arbitrate. However, if talks fail then the complaint may request judicial hearing by a panel.