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CAFC Says No 50% Threshold for Substantial Dependence Analysis in CVD Cases

The Court of Appeals for the Federal Circuit on May 20 ruled that the Court of International Trade was wrong to establish a 50% threshold when determining whether demand for an agricultural product is "substantially dependent" on its raw upstream…

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iteration for purposes of assigning countervailing duties. Judges Sharon Prost, William Bryson and Leonard Stark said the Commerce Department has significant leeway in determining whether substantial dependence exists. In the present case, which assessed subsidies to Spanish raw olive growers, the court affirmed Commerce's finding of substantial dependence, finding that errors in the agency's analysis of dependence were nonprejudicial to the affected Spanish ripe olive exporters.