DocketNumber: Slip Op. 18–15; Court No. 18–00023
Judges: Stanceu
Filed Date: 3/5/2018
Status: Precedential
Modified Date: 10/18/2024
*1297Plaintiffs Silfab Solar, Inc., Heliene, Inc., Canadian Solar (USA), Inc., and Canadian Solar Solutions, Inc. move for a temporary restraining order and preliminary injunction to prohibit defendants from subjecting plaintiffs' products to "safeguard" measures, in the form of temporary import duties, that the United States recently imposed on imports of certain crystalline silicon photovoltaic ("CSPV") cells and certain products (including "modules") that contain such cells.
Because plaintiffs have failed to demonstrate a likelihood that they will succeed on the merits of their claims, and because they have not demonstrated that the imposition of the equitable relief they seek would be in the public interest, the court denies their motion.
I. BACKGROUND
A. The Parties to this Litigation
Plaintiffs Silfab Solar, Inc., Heliene, Inc., and Canadian Solar Solutions, Inc. are Canadian producers and exporters of CSPV modules, which are products that incorporate CSPV cells and that are intended for use in the residential, commercial, and industrial generation of solar electricity. Compl. ¶¶ 8, 9, 11 (Feb. 7, 2018), ECF Nos. 2 (public), 16 (conf.). Plaintiff Canadian Solar (USA), Inc. is a U.S. importer of solar cells and modules, including products from Canadian Solar Solutions, Inc. Id. ¶ 10.
Plaintiffs have named as defendants in this action the United States, U.S. Customs and Border Protection ("CBP") and its acting Commissioner, the U.S. International Trade Commission (the "Commission" or the "ITC") and its Chairman, and the Office of the United States Trade Representative and the U.S. Trade Representative (collectively, the "USTR"). Id. ¶¶ 12-18. Defendant-intervenors Suniva Inc. ("Suniva") and SolarWorld Americas, Inc. ("SolarWorld") are U.S. manufacturers of CSPV cells and modules.
B. The President's Proclamation
President Trump issued Proclamation 9693 of January 23, 2018, "
*1298To Facilitate Positive Adjustment to Competition From Imports of Certain Crystalline Silicon Photovoltaic Cells (Whether or Not Partially or Fully Assembled Into Other Products) and for Other Purposes" (the "Proclamation"), which went into effect on February 7, 2018. Proclamation No. 9693,
The temporary duties are to remain in effect for a four-year period beginning on the effective date (i.e., February 7, 2018).
C. Administrative Actions Preceding the Issuance of the Proclamation
Effective May 17, 2017, the Commission initiated an investigation, Investigation No. TA-201-75, in response to a petition filed by Suniva pursuant to which an entity representing a U.S. industry may request a "safeguard" action under sections 201 to 203 of the Trade Act "for the purpose of facilitating positive adjustment to import competition." 19 U.S.C § 2252(a)(1). Crystalline Silicon Photovoltaic Cells (Whether or Not Partially or Fully Assembled Into Other Products); Institution and Scheduling of Safeguard Investigation and Determination That the Investigation Is Extraordinarily Complicated ,
On November 17, 2017, the Commission transmitted to the President its report on the investigation, in which it reached an affirmative determination under section 202(b) of the Trade Act,
D. Commencement of this Action and the Filing of the Motion
Plaintiffs filed their complaint in redacted form on February 7, 2018 and, on the same day, filed their redacted motion for a temporary restraining order and preliminary injunction. Compl.; Pls.' Mot. for TRO and Prelim. Inj. (Feb. 7, 2018), ECF
*1299No. 10. On February 9, 2018, following the court entering a protective order, plaintiffs filed unredacted versions of the complaint and their motion, which contained business-related information for which they claim confidential treatment. Pls.' Mot. for TRO and Prelim. Inj. (Feb. 9, 2018), ECF No. 17 (conf.). Plaintiffs seek a declaratory judgment that the Proclamation as applied to them is contrary to law and an order enjoining the United States from taking any action to impose or enforce the Proclamation on products from Canada covered by the Proclamation and from collecting any tariffs from plaintiffs pursuant to it. Proposed Prelim. Inj. Order (Feb. 7, 2018), ECF No. 10-16 ("Proposed Order").
The court held a telephone conference with the parties on February 12, 2018. With the agreement of the parties, the court scheduled an oral argument for February 26, 2018 on the issues of whether plaintiffs have shown a likelihood of success on the merits and whether a temporary restraining order or preliminary injunction would be in the public interest. Order (Feb. 12, 2018), ECF No. 22. The court held oral argument on February 26, 2018.
II. DISCUSSION
A. Subject Matter Jurisdiction
This action arises out of sections 201-203 of the Trade Act, which provide for the imposition by the President of safeguard measures, including temporary import duties, to facilitate the adjustment of a domestic industry to import competition. Sections 201-203 provide for tariffs and duties for a reason other than the raising of revenue, i.e., to facilitate that adjustment. The court, therefore, exercises jurisdiction according to section 201 of the Customs Courts Act of 1980,
B. Factors to Be Considered for a Temporary Restraining Order and Preliminary Injunction
A party may obtain a temporary restraining order or preliminary injunction if it demonstrates that it will incur irreparable harm in the absence of such order or injunction, that it is likely to succeed on the merits of the action, that the balance of hardships favors the imposition of temporary equitable relief, and that the temporary restraining order or injunction is in the public interest. Wind Tower Trade Coal. v. United States ,
For the reasons discussed in this Opinion and Order, the court concludes that plaintiffs have not demonstrated that they have a fair chance to succeed on the merits of any of their three claims. The court further concludes that they have failed to show that the equitable relief they seek would be in the public interest. Therefore, even were the court to presume, without deciding, that plaintiffs would be able to demonstrate that they will incur irreparable harm absent the relief they seek, and that the balance of hardships is in their favor, they still would not qualify for this relief. In this case, there are no facts in dispute as to the merits of their claims, and the court is able to assess their likelihood of success by considering pure questions of law stemming from the interpretation of the applicable statutes. While arguing that their showing of likelihood of success on the merits should be viewed on a sliding scale based on a strong showing of irreparable harm, they have failed to show that the statutory interpretations on which they have based their claims are plausible.
C. Plaintiffs' Claims in this Litigation
Plaintiffs assert three claims in their complaint. The claims have in common a contention that the President acted without congressional authority in issuing the Proclamation. The first claim identifies a flaw in the proceedings leading up to the issuance of the Proclamation, and the other two pertain to an aspect of the President's determination itself. Plaintiffs maintain that the court must declare the Proclamation unlawful, and prohibit the implementation of the Proclamation, in response to each of these claims.
First, plaintiffs claim, in Count 1 of their complaint, that the President and the U.S. Trade Representative violated sections 201 and 203 of the Trade Act by adopting a safeguard measure upon a report of the ITC that did not comply with subsection (e) of section 202 of the Trade Act. Compl. ¶ 54. Section 202(e)(1) directs that the Commission, if making an affirmative determination that imports were a substantial cause of serious injury to a domestic industry, as it did in the proceeding resulting in the issuance of the Proclamation, "shall also recommend the action that would address the serious injury, or threat thereof, to the domestic industry and be most effective in facilitating the efforts of the domestic industry to make a positive adjustment to import competition."
Second, plaintiffs claim (in Count 2) that the Proclamation, by including the tariff-rate quota on CSPV cells not assembled into modules or other products, violated section 312(d) of the North American Free Trade Agreement Implementation Act (the "NAFTA Implementation Act"), North American Free Trade Agreement Implementation Act, Pub. L. No. 103-182,
Third, in Count 3 of their complaint, citing section 311(a) of the NAFTA Implementation Act,
D. Plaintiffs Have Not Shown a Likelihood of Success on the Merits for their Claims
1. Plaintiffs Have Not Shown a Likelihood of Success for the Claim Asserted in Count 1
In the report of its investigation, the four Commissioners of the ITC were unanimous in finding that CSPV products were being imported into the United States in such increased quantities as to be a substantial cause of serious injury to the domestic industry. Views of the Commission at 5 n.2 ("The Commission's affirmative serious injury determination is unanimous, reflecting the views of Chairman Rhonda K. Schmidtlein, Vice Chairman David S. Johanson, and Commissioners Irving A. Williamson and Meredith M. Broadbent."). In a section entitled "Remedy Recommendations," the Commission's report states that "[i]n order to address the serious injury to the domestic industry producing CSPV products and be most effective in facilitating the efforts of the domestic industry to make a positive adjustment to import competition, the Commission recommended a series of actions."
The report described the recommendation of Chairman Schmidtlein as consisting of a tariff-rate quota on CSPV cells, with a 10% in-quota rate the first year, 9.5% in year two, 9% in year three, and 8.5% in year four.
Vice Chairman Johanson and Commissioner Williamson joined in a recommendation that also consisted of a tariff-rate quota on cells and a tariff on modules.
*1302Commissioner Broadbent did not recommend a tariff-rate quota or a tariff, recommending instead a quantitative restriction of imports of CSPV products, including cells and modules, set at 8.9 gigawatts for the first year and increasing by 1.4 gigawatts per year in each of the subsequent three years.
In Count 1, plaintiffs seek judicial invalidation of the Proclamation based on a claim of a procedural flaw in the ITC report on which the President based his action. Plaintiffs rely on various provisions in the Trade Act, including in particular section 202(e)(1),
Two decisions of the Court of Appeals have considered similar challenges in cases involving presidential proclamations issued under the "escape clause" provisions, sections 201-203, of the Trade Act. Maple Leaf Fish Co. v. United States ,
While having similarities to Maple Leaf Fish and Corus Group , this case differs from those cases in a significant respect: the claimed procedural flaw here does not pertain to the ITC's affirmative injury finding but instead to the ITC's failure to reach a remedy recommendation that was on behalf of the Commission as a whole. The ITC's report to the President contained three different, and alternative, recommended actions. The issue the Count 1 claim presents is whether the ITC's failure to reach agreement on, and report to the President, a recommended remedy that was on behalf of the Commission confined the discretion of the President to order the safeguard measure. If it did, then the action of the Commission and, thereby, plaintiffs' Count 1 claim, are judicially reviewable. See Corus Group ,
In section 330(d)(2) of the Tariff Act of 1930,
The remedy finding of Vice Chairman Johanson and Commissioner Williamson was one vote short of qualifying as a "remedy finding of the Commission," and the other two remedy findings each fell short by two votes. The court, therefore, presumes plaintiffs are correct in asserting, Compl. ¶ 53, that "[t]he ITC did not recommend an action within the meaning of section 202(e) of the Trade Act [
On "text" and "structure," sections 201(a) and 203(a) of the Trade Act, which *1304contain similar language, are informative on the question presented by the claim in Count 1. Section 201(a) provides:
If the United States International Trade Commission ... determines under section 2252(b) of this title that an article is being imported into the United States in such increased quantities as to be a substantial cause of serious injury , or the threat thereof, to the domestic industry producing an article like or directly competitive with the imported article, the President, in accordance with this part, shall take all appropriate and feasible action within his power which the President determines will facilitate efforts by the domestic industry to make a positive adjustment to import competition and provide greater economic and social benefits than costs.
After receiving a report under section 2252(f) of this title [i.e., the report of the Commission] containing an affirmative finding regarding serious injury , or the threat thereof, to a domestic industry, the President shall take all appropriate and feasible action within his power which the President determines will facilitate efforts by the domestic industry to make a positive adjustment to import competition and provide greater economic and social benefits than costs.
Plaintiffs argue that the words "report under section 2252(f) of this title" as they appear in section 203(a)(1)(A),
Plaintiffs rely on Corus Group in concluding that "the President cannot act under section 201 if he receives a report that lacks the elements-including a recommendation-that section 202(f) states that 'the Commission report must contain.' " Pls.' Reply Br. 8 (quoting Corus Group ,
With respect to section 201(a) of the Trade Act,
Plaintiffs' argument that "the Act's purpose" compels an interpretation under which a remedy finding of the Commission is needed for presidential action is likely to fare no better than their argument on plain meaning. Stated in fundamental terms, the Act's purpose is to authorize the President to take "all appropriate and feasible action,"
Of course, the President, once presented with an ITC finding that a domestic industry is incurring serious injury or threat, retains the discretion either to take the action that is "appropriate and feasible,"
Plaintiffs argue that a remedy finding on behalf of the Commission is essential to the operation of other provisions of the Trade Act. Specifically, they argue that subparagraph (2)(A) of § 2253(a), by directing that "[i]n determining what action to take under paragraph (1), the President shall take into account ... the recommendation and report of the Commission," imposes on the President a duty that is "impossible for" the President "to fulfill in the absence of such a recommendation." Pls.' Br. 24. According to plaintiffs, the lack of a remedy finding on behalf of the Commission also makes impossible the President's compliance with a provision in
Plaintiffs also note that the absence of a remedy finding on behalf of the Commission renders inoperative the congressional override procedure of
Plaintiffs correctly point out that the Commission's failure to provide, in the words of
As to the congressional override provision in particular, the absence from the ITC's report of a remedy finding of the Commission, rather than confining the President's discretion, confined the discretion of Congress to invoke its override authority. Plaintiffs argue that without resort to the override provision of
As enacted in 1974, the escape clause provisions of the Trade Act also contained a congressional override provision. Congress enacted the current section 330(d)(2) of the Tariff Act of 1930,
if a majority of the Commissioners on the International Trade Commission voting on an escape clause or market disruption case under section 201 or 406 of the Trade Act of 1974, respectively, cannot agree on an injury determination or a remedy finding or recommendation, then the President may consider the "findings" agreed upon by one-half the number of Commissioners voting to be the "findings" of the Commission. If the Commission is equally divided into two groups, the President may consider the finding of either group to be the finding of the Commission.
H.R. Rep. No. 94-1515, at 530-31 (1976) (Conf. Rep.), reprinted in 1976 U.S.C.C.A.N. 4118, 4228-29 ("Conference Report "). Prior to the 1976 amendment, Congress could override an escape clause determination of the President only when the President declined to adopt a remedy finding supported by a majority of voting commissioners. If the Commission was equally divided into two groups, each supported by one-half the number of commissioners voting, and the President chose the remedy finding of one of those two groups, chose a different remedy, or chose to deny relief, there could be no congressional override.
The Senate Report for the Tax Reform Act explained the reason for amending section 330(d). Because it is instructive as to the reason for the amendment, the court *1309quotes it at length. After summarizing the congressional override provision in the Trade Act of 1974, the Senate Report stated that:
Under the Trade Act of 1974, if the Congress prefers the remedy recommended by the Commission rather than the relief proposed by the President, or if the President declines to grant relief, a majority of those present and voting of both Houses may pass a resolution within 90 Congressional working days requiring the President to implement the remedy recommended by the Commission.
This was the manner in which the Trade Act was intended to work. However, in two of the six escape clause cases under the Trade Act in which the Commission found by a majority vote that injury existed, the Commission was unable to reach majority agreement with respect to a remedy. In such cases, even though a majority of the Commission agree that an industry is being injured, because the Commission cannot agree as to what kind of relief is appropriate, the Congressional override mechanism of the Trade Act fails to function. When the Commissioners are unable to reach, through compromise, a common position with respect to remedy, the Congress is deprived of its opportunity to override the decision of the President and to reinstate the recommendation of the Commission. In such a situation, the President is free to deny import relief-for reasons which may be rooted in foreign policy without adequate regard to sound economics-without fear of being overridden by the Congress. The result is that an industry which may be found by the Commission to be entitled to import relief has been deprived of that relief, without good reason.
S. Rep. No. 94-938, pt. 2, at 57-58 (1976), reprinted in 1976 U.S.C.C.A.N. 4030, 4083 ("Senate Report "). Having explained in this way the problem being addressed, the Senate Report then discussed the solution to the problem as set forth in the Senate bill, as follows:
The Committee's amendment would increase the probability that if there is a majority vote for injury, there would be a majority finding on a remedy. The Committee's amendment would:
(1) Change the number of Commissioners from six to seven (see section 2403);
(2) Permit only those Commissioners who vote for injury to vote for a remedy;
(3) Require that a recommendation by a plurality of the number of Commissioners voting for remedy be considered the Commission's recommendation for import relief;
(4) Require that a recommendation by any group of Commissioners voting for remedy be considered the Commission's recommendation for import relief if the Commissioners are divided into two or more equal groups; and
(5) Provide that a Commissioner whose term has expired may continue in office until his successor has been nominated by the President and confirmed by the Senate (see section 2403).
Conference agreement. -Under the conference agreement, if a majority of the Commissioners voting on an escape clause or market disruption case cannot agree on a remedy finding, then the remedy finding agreed upon by a plurality of not less than 3 Commissioners shall be treated as the remedy finding of the Commission for the purposes of the Congressional override in sections 202 and 203 of the Trade Act of 1974. If the Commission is tied on the remedy vote, and each voting group includes not less than 3 Commissioners, then (1) if the President takes the action recommended by one of those groups, the remedy finding agreed upon by the other group shall, for purposes of the Congressional override, be treated as the remedy finding of the Commission, or (2) if the President takes action which differs from the action agreed upon by both such groups, the remedy finding agreed upon by either such group may be considered by the Congress as the remedy finding of the Commission for purposes of the Congressional override. It is the intention of the conferees that this apply only for purposes of implementing the Congressional override in sections 202 and 203 of the Trade Act of 1974. It is not intended that this provision affect in any way the rules of procedure of the International Trade Commission.
Further, the conferees strongly urge the Commissioners to reach majority agreement on all determinations, findings, and recommendations in all cases.
Conference Report at 530-31.
The Senate and Conference Reports show that Congress was aware that in some cases under then-current law the Commission might agree that a domestic industry is undergoing serious injury or threat but might not reach majority agreement on a remedy finding and that the congressional override provision of section 203(c) of the Trade Act would not function in that instance. The solution agreed upon at conference allowed the congressional override mechanism to function in some instances in which the Commission did not reach majority agreement on a remedy finding. For example, under the prior law the override was not available in the case of an evenly-divided Commission, with one half of voting commissioners supporting one remedy finding and the other half supporting another. That was because the President , not Congress, could choose which of the two would be regarded as the remedy finding of the Commission. Under the 1976 amendment, in the event that three commissioners support a remedy finding not imposed by the President (whether the President grants relief or not), that remedy finding is available for adoption by the Congress. Where two groups of three commissioners support different remedy findings, and the President chooses to adopt the remedy finding of one group, Congress may impose the remedy the President did not choose, and it may impose either one should the President choose to impose a different remedy or none at all.
Still, the solution adopted in the 1976 amendment did not ensure that a remedy finding of the Commission would be available in every escape clause proceeding: the override provision required that at least one remedy finding be supported by a group of three commissioners. The Senate and Conference reports did not state or suggest that the President could not act to remedy the serious injury or threat in those cases in which the congressional override provision was not available. Notably, the Congress, in amending section *1311330(d) of the Tariff Act, did not intend that its changes would confine the discretion of the President under the escape clause provisions of the Trade Act of 1974. The Senate Report made this point explicitly:
This section amends section 330(d) of the Tariff Act of 1930, relating to the voting procedures of the Commissioners in import relief cases. The committee states that nothing contained in this section, or in any other provision of the amendment, is intended to alter the eligibility criteria for import relief under the Trade Act of 1974.... In addition, the committee states that nothing contained in this section, or in any other provision of the amendment, is intended to change the legal authority of the President under present law to select the type and level of import relief to be provided to an industry, be it the form of relief recommended by the Commission, a modification of the Commission's recommendation, or a denial of relief altogether.
Senate Report at 57 (emphasis added).
In their brief and in their reply brief, plaintiffs point to other language in the Senate Report, as follows:
International Trade Commission (Title XXIV)
The voting procedures of The International Trade Commission in import relief cases are changed to insure that the Congress will have an opportunity to override import relief decisions of the President under sections 201 and 406 of the Trade Act of 1974. The Commission membership is to be increased from six to seven members, and certain other procedural and organizational changes are to be made with respect to the Commission.
Senate Report at 4-5; see Pls.' Br. 29; Pls.' Reply Br. 13. This language appears in the "Summary" at the beginning of the Senate Report, which summarizes all the changes in the Senate bill. The more specific, and far more detailed, discussion in the body of the Senate Report, which clarifies that the changes in the Senate bill were intended to "increase the probability that if there is a majority vote for injury, there would be a majority finding on a remedy," id. at 58, is more instructive as to what the Senate bill was trying to achieve. Also instructive to the interpretation of the Senate Report is the nature of the changes the Senate bill actually would have made. None of the changes would do what plaintiffs argue Congress intended: to prohibit presidential action, or to continue to prohibit presidential action, in the absence of remedy finding of the Commission.
Plaintiffs also cite a statement by Senator Ribicoff, the sponsor of the 1976 amendment, that the change was intended to "correct the serious problems that have developed in connection with 'escape clause' actions under the Trade Act of 1974' and 'make sure that the escape clause works in the future the way Congress originally intended it to.' " Pls.' Br. 29 (quoting 122 Cong. Rec. 24,725 (1976) (statement of Sen. Ribicoff) ) (emphasis omitted). This language sheds no light on whether Congress ever intended to deny the President authority to impose a safeguard action in the absence of a remedy finding of the Commission.
According to plaintiffs, legislative history of the Customs Courts Act of 1980 confirms their interpretation of the escape clause statute. They argue that "the drafters wrote that the Trade Act 'specif{ies} that the President may not act until he has received advice from the International Trade Commission (ITC) or the U.S. Trade Representative.' " Pls.' Reply Br. 13 (quoting H.R. Rep. No. 96-1235, at 31 (1980), reprinted in 1980 U.S.C.C.A.N. 3729, 3743). The quoted language is from *1312the report of the House Judiciary Committee on the legislation that established the Court of International Trade and is on the topic of the jurisdiction the new court should have. An examination of the quoted sentence in the context in which it appears in the House report reveals that plaintiffs have misinterpreted the word "advice" in the quoted sentence. It was not a specific reference to a remedy finding of the Commission in an escape clause action. Nor was the intended meaning of the word "advice" one confined to "recommendations." In the report, the House Judiciary Committee was referring generally to statutes authorizing the President to take actions to protect the United States and American manufacturers against injury due to the importation of foreign goods and not in particular to sections 201-203 of the Trade Act.
Plaintiffs argue, further, that the 1988 amendments to the escape clause provisions in the Trade Act, made as part of the Omnibus Trade and Competitiveness Act of 1988, confirm that Congress intended to foreclose presidential discretion to impose a safeguard measure in the absence of a qualifying ITC recommendation. Pls.' Br. 29; Pls.' Reply Br. 13. As alluded to previously, Congress amended section 202, adding the limitation in current paragraph (e)(6), which provides that only the commissioners who agreed to the affirmative injury or threat determination "are eligible to vote on the recommendation required to be made under paragraph (1) [the recommendation of 'the action that would address the serious injury or threat thereof'] or that may be made under paragraph (3) [directing the ITC to specify the 'type, amount, and duration of the action' it recommends]."
Plaintiffs' argument that their statutory interpretation is supported by "decades of historical practice" is also unconvincing. Pls.' Br. 23. Plaintiffs argue that the Proclamation is "unprecedented" in acting in the absence of a remedy finding of the Commission, positing that past practice has guided the Supreme Court in determining questions of presidential authority. Pls.' Br. 30 (citing Medellin v. Texas ,
In summary, plaintiffs' statutory interpretation encounters serious difficulties when considered according to the plain meaning, purpose, and legislative history of the escape clause provisions. The likely outcome is a conclusion that the ITC's decision was not judicially reviewable because the absence of a remedy finding of the Commission in the ITC's report did not confine the President's discretion to issue the Proclamation. Therefore, plaintiffs have failed to show a likelihood of success for the claim they assert in Count 1 of their complaint.
2. On their Count 2 Claim, Plaintiffs Are Unlikely to Demonstrate that the Tariff-Rate Quota on CSPV Cells Violated the NAFTA Implementation Act
In Count 2, plaintiffs claim that the Proclamation cannot lawfully be applied to them because it imposes a safeguard action *1314including a tariff-rate quota that fails to comply with the NAFTA Implementation Act. Compl. ¶¶ 55-60. Section 312(d) of the NAFTA Implementation Act provides as follows:
Any action taken under this section proclaiming a quantitative restriction shall permit the importation of a quantity or value of the article which is not less than the quantity or value of such article imported into the United States during the most recent period that is representative of imports of such article, with allowance for reasonable growth.
As a threshold consideration, plaintiffs are faced with an issue of standing on which they may not be able to prevail. They do not allege that they produce or export CSPV cells, which is the "article" that is the subject of the tariff-rate quota in the Proclamation. See Compl. ¶¶ 8, 9, 11. Three of the four plaintiffs-Silfab Solar, Inc., Heliene, Inc., and Canadian Solar Solutions, Inc.-are Canadian producers of CSPV modules.
Even were plaintiffs able to establish standing to assert their Count 2 claim, they still would be unlikely to prevail because they have not demonstrated that their interpretation of
The individual subsections of section 312 of the NAFTA Implementation Act,
Plaintiffs argue that section 312(d) must be read in concert with NAFTA article 802.5(b), which provides that "[n]o Party may impose restrictions ... that would have the effect of reducing imports of such good from a Party below the trend of *1315imports of the good from that Party over a recent representative base period with allowance for reasonable growth." See North American Free Trade Agreement, Can.-Mex.-U.S., art. 802.5(b), Dec. 8-17, 1992, 32 I.L.M. 289 (1993), available at https://www.nafta-sec-alena.org/Home/Texts-of-the-Agreement/North-American-Free-Trade-Agreement?mvid=2 (last visited Mar. 5, 2018) (the "NAFTA"). Plaintiffs also argue that a tariff-rate quota is a "textbook example of a quantitative restriction," citing the General Agreement on Tariffs and Trade 1947 ("GATT") and a U.S. submission to a World Trade Organization panel in a dispute with the European Communities on banana importations. Pls.' Br. 32. (citing Second Written Submission of the United States, European Communities-Regime for the Importation, Sale and Distribution of Bananas , ¶¶ 82-85, WTO Doc. WT/DS27 (Sept. 27, 2007), available at https://ustr.gov/sites/default/files/uploads/CountriesR¨egions/africa/agreements/pdfs/dispute_ settlement/ds27/asset_upload_file841_13273.pdf (last visited Mar. 5, 2018) ). Plaintiffs argue that "the Proclamation 'permit{s} the importation' of a dramatically reduced ... 'quantity {and} value of' Canadian CSPV products" because "[t]he Proclamation's duties will make it prohibitively expensive for Plaintiffs to continue selling CSPV products in the United States."
3. Plaintiffs Are Unlikely to Demonstrate that the Proclamation Is Ultra Vires for Failing to Exempt CSPV Products from Canada from the Safeguard Measure
Plaintiffs' Count 3 claim is that defendants violated section 312(b) of the NAFTA Implementation Act because the Proclamation failed to exclude Canadian imports of CSPV products from the global safeguard. See Compl. ¶¶ 61-67 (citing, inter alia ,
*1316a. The NAFTA Implementation Act Permits, But Does Not Require, the President to Exempt Imports from a NAFTA Country from a Global Safeguard
Plaintiffs argue that "a NAFTA country must be excluded from a global safeguard action unless imports from that country 'account for a substantial share of total imports' and 'contribute importantly to the serious injury, or threat thereof, caused by imports.' " Pls.' Br. 34 (citing
Sections 311 and 312 of the bill implement the global action provisions of [NAFTA] Article 802. They authorize the President, in the case of a global action under sections 201-204 of the Trade Act of 1974, to exclude imports of a Canadian or Mexican good when certain conditions are met.
* * *
Under section 312, the President must exclude NAFTA imports from a global safeguard action if he makes a negative determination that imports from a NAFTA country account for a substantial share of total imports or imports from a NAFTA country or countries contribute importantly to the serious injury or threat of serious injury.
H.R. Doc. No. 103-59 at 564-65 (1993).
Plaintiffs argue that the Proclamation violates the NAFTA. Pls.' Br. 35-36. International agreements may aid in the interpretation of the ambiguous statutes implementing them, but there is no ambiguity in section 312(b). See
*1317Plaintiffs also argue that the use of the word "find" in section 311(a) demonstrates that Congress "wished to authorize the Commission to make a conclusive judgment" because when Congress "wished the Commission's judgment to be merely advisory, it used the word 'recommend.' " Pls.' Br. 36. This argument fails to explain why Congress would require the President to make the same "substantial share of total imports" and "contribute importantly to the serious injury" determinations, see
Finally, plaintiffs argue that past presidential safeguard proclamations have established a practice of excluding imports from NAFTA countries from the global safeguard when the Commission makes negative "substantial share of total imports" and "contribute importantly to the serious injury" findings. Pls.' Br. 37-38. If such a practice exists, it is not relevant to the statutory interpretation issue presented by plaintiffs' Count 3 claim.
b. The Requirement for an Affirmative Injury Determination in the Trade Act Did Not Require the President to Exempt Canadian CSPV Products from the Scope of the Proclamation
Plaintiffs argue that the report of the ITC, which found that imports of CSPV products from Canada do not "contribute importantly" to the serious injury the ITC found to exist, did not contain "an affirmative finding regarding serious injury" within the meaning of section 203(a)(1)(A) of the Trade Act,
In an investigation under section 202 of the Trade Act, the Commission is required to "determine whether an article is being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry."
c. The President's Determinations under Section 312(a) are Not Subject to Judicial Review
Plaintiffs' third argument in support of its Count 3 claim is that the President could not conclude on this record that Canadian imports constitute a substantial share of total imports without violating § 3372(a). Pls.' Br. 35, 38-42. This argument is also unlikely to succeed. Determinations of the President that Congress has committed to the President's discretion are not subject to judicial review. Dalton ,
Plaintiffs argue that "where Congress has imposed discernible statutory limits on the President's authority, the courts have time and again made clear it is the courts' obligation to determine whether the President has 'clear{ly} misconstrue{ed}' the statutory language or 'act{ed} outside delegated authority.' " Pls.' Br. 38 (quoting Corus Group ,
The determination the President made under § 3372(a)(1) was one of two determinations, pursuant to § 3372(a)(1) and (a)(2) respectively, that call for the President to exercise judgment on matters Congress confined to the President's discretion. The exercise of the President's judgment in making those determinations is not subject to review by the court. See George S. Bush & Co. ,
*1319Here, as courts have held in similar situations, "the President's findings of fact and the motivations for his action are not subject to review." Corus Group ,
E. The Public Interest Does Not Weigh In Favor of an Injunction
To obtain a temporary restraining order or preliminary injunction, plaintiffs must demonstrate that the equitable relief requested would be in the public interest. Wind Tower Trade Coal. ,
Plaintiffs argue that the public interest is "served by ensuring that the {Executive} complies with the law." Pls.' Br. 42 (quoting SKF USA Inc. v. United States ,
Plaintiffs also argue that the public has an interest in "enforcing 'compli{ance} with this country's treaty obligation.' " Pls.' Br. 42 (quoting Robles Antonio v. Barrios Bello , No. 04-12794-GG,
Plaintiffs argue, further, that the public interest would be served by an injunction because the Proclamation "harms workers, industries, and consumers in the United States" as "Canadian CSPV products support jobs in the U.S. solar sector." Id. at 43 (directing the court's attention to letters written by various governmental officials). This argument invites the court to consider matters of public policy that are beyond the scope of the judicial review of this action. These are matters the President was tasked with considering when determining whether a contemplated action "provide[s] greater economic and social benefits than costs,"
III. CONCLUSION AND ORDER
Plaintiffs have failed to show that they are likely to succeed on the merits for any of their claims and that the equitable relief they seek would be in the public interest. Having failed to meet two essential requirements for the issuance of a temporary *1320restraining order or preliminary injunction, the court must deny their motion. Therefore, upon consideration of their motion, upon all papers and proceedings had herein, and upon due deliberation, it is hereby
ORDERED that plaintiffs' motion for a temporary restraining order and a preliminary injunction be, and hereby is, denied; and it is further
ORDERED that the caption shall be amended to the form in which it appears on this Opinion and Order.
All citations to the United States Code herein are to the 2012 edition except where otherwise indicated.
The use of the plural term "recommendations" in
The reference to "this part" is to "Part 1-Positive Adjustment by Industries Injured by Imports" of "Subchapter II-Relief from Injury Caused by Import Competition." Part 1 consists of sections 201-205 of the Trade Act of 1974,
The paragraph reads as follows:
Pursuant to his statutory authority, the President may take certain actions to protect the United States and American manufacturers against injury due to the importation of foreign goods. These statutes specify that the President may not act until he has received advice from the International Trade Commission (ITC) or the U.S. Trade Representative (USTR). Current law does not provide for the judicial review of the substantive advice rendered by the ITC or the U.S. Trade Representative.
H.R. Rep. No. 96-1235, at 31 (1980) (emphasis added), reprinted in 1980 U.S.C.C.A.N. 3729, 3743.
The escape clause provisions in the 1974 version of the Trade Act (which renamed the "U.S. Tariff Commission" the "U.S. International Trade Commission") directed that the Commission, if reaching an affirmative injury finding, "shall ... find the amount of the increase in, or imposition of, any duty or import restriction on such article which is necessary to prevent or remedy such injury."
The report of the Senate Finance Committee explains that the new limitation on voting procedures, which restored a prior ITC practice that had not recently been followed, would, first, prevent commissioners who disagreed with the affirmative injury or threat finding from skewing the recommendation to make it less effective. "Second, the provision improves the likelihood that the ITC will make a unified recommendation to the President regarding actions to be taken." S. Rep. No. 100-71, at 56 (1987). The Finance Committee stated that it "believes that it is important to have a consensus from the ITC on the actions recommended."
Medellin is inapposite. In that case, the Supreme Court considered an "unprecedented" exercise of purported presidential power undertaken absent congressional authorization , finding that Congress had never "acquiesced" to the President's authority to unilaterally direct state courts to implement non-self-executing treaty obligations. Medellin v. Texas ,
The Commission filed a brief in support of a motion to dismiss the Commission as a defendant in this case. See Mot. to Dismiss and Mem. in Supp. of Mot. to Dismiss of Def. U.S. Int'l Trade Commission (Feb. 20, 2018), ECF No. 33. Because plaintiffs have not had the opportunity to respond to this motion, the court does not consider the ITC's motion at this time.
Chairman Schmidtlein dissented. "She finds that under section 311(a) ... U.S. imports of CSPV products from Canada account for a substantial share of total imports and contribute importantly to the serious injury caused by imports." Views of the Commission at 67 n.387.