US Proposes New Rule to Address “Currency Undervaluation” as Potential Subsidy

On May 28, 2019, following its announcement of a proposal to investigate “currency undervaluation” as an actionable government subsidy—a significant reversal of its prior position—the US Department of Commerce proposed modifying two of its countervailing duty (aka anti-subsidy) regulations and asked for public comments by June 27. This Legal Update provides background, details on the proposed new rule and advice for parties potentially affected by it.