CEMEX, S.A. v. United States

790 F. Supp. 290, 16 Ct. Int'l Trade 251, 16 C.I.T. 251, 14 I.T.R.D. (BNA) 1190, 1992 Ct. Intl. Trade LEXIS 50
CourtUnited States Court of International Trade
DecidedApril 7, 1992
DocketCourt 90-10-00509
StatusPublished
Cited by22 cases

This text of 790 F. Supp. 290 (CEMEX, S.A. v. United States) is published on Counsel Stack Legal Research, covering United States Court of International Trade primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CEMEX, S.A. v. United States, 790 F. Supp. 290, 16 Ct. Int'l Trade 251, 16 C.I.T. 251, 14 I.T.R.D. (BNA) 1190, 1992 Ct. Intl. Trade LEXIS 50 (cit 1992).

Opinion

RESTANI, Judge.

In Gray Portland Cement and Cement Clinker From Mexico, 55 Fed.Reg. 35,371 (ITC 1990), the United States International Trade Commission (“ITC”) determined that a regional domestic industry in the United States was materially injured by reason of cement imports from Mexico. CEMEX, S.A., a Mexican producer of cement, appeals from the determination, and now moves for judgment on the agency record. ITC’s determination is affirmed.

I.

BACKGROUND

The Ad Hoe Committee of AZ-NM-TX-FL Producers of Gray Portland Cement (“Ad Hoc Committee”) represents certain cement producers with production facilities in Arizona, New Mexico, Texas and Florida. On September 26, 1989, Ad Hoc Committee filed a petition with ITC and the Department of Commerce (“Commerce”), alleging injury to a United States industry by reason of less than fair value (“LTFV”) imports of gray portland cement and cement clinker from Mexico. ITC and Commerce issued affirmative preliminary determinations. See Gray Portland Cement and Cement Clinker From Mexico, USITC Pub. 2235, Inv. No. 731-TA-451 (Nov.1989); Gray Portland Cement and Clinker From Mexico, 55 Fed.Reg. 13,817 (Dep’t Comm.1990).

ITC reached a final determination on August 13, 1990, and issued an opinion on August 23, 1990. Gray Portland Cement and Cement Clinker From Mexico, USITC Pub. 2305, Inv. No. 731-TA-451 (Aug.1990) (“Final Det.”). It determined that a United States industry, composed of producers of gray portland cement and cement clinker in the southern-tier states, was materially injured by reason of LTFV imports of cement and cement clinker from Mexico.

Prior to the final determination, a committee of cement producers in Southern California had filed a petition with ITC and Commerce alleging material injury due to LTFV cement imports from Japan. By the time of the final determination in this case, ITC had made a preliminary affirmative determination in the Japanese case, (Gray Portland Cement and Cement Clinker From Japan, USITC Pub. 2297, Inv. No. 731-TA-461 (July 1990) (“Japan Cement ”)), but Commerce had not issued its preliminary or final determinations regarding LTFV sales.

II.

ITC DETERMINATION

Three Commissioners participated in ITC’s final determination. Commissioner Rohr made a negative determination, which is not at issue. Acting Chairman Bruns-dale and Commissioner Lodwick made affirmative determinations, and each issued an opinion. Both opinions are challenged here.

Acting Chairman Brunsdale first determined that cement and cement clinker comprise a single like product. She then found that a regional industry analysis was appropriate, and that the regional industry consisted of producers in the southern-tier states of California, Texas, Arizona, New Mexico, Alabama, Louisiana, Mississippi *292 and Florida. She determined that cumulation was mandatory, and cumulatively assessed the volume and price effects of Mexican and Japanese imports into the region: her consideration of Japanese imports was based on the allegations in the Japanese case, as recalculated by Commerce. She then considered whether there was material injury to the domestic industry based on the statutory factors. She found that the financial performance of the southern-tier producers had deteriorated during the period of investigation, and applied an elasticities analysis to determine the volume, price and overall effect of the dumped imports on the domestic industry. She concluded that the domestic industry was materially injured by reason of LTFV imports from Mexico. Finally, she found that the statutory requirements for injury in a regional investigation had been met, and that all producers were injured because they were not insulated from the general effect of the injurious imports.

Commissioner Lodwick’s determination was based on a slightly different analysis. He concurred with Acting Chairman Bruns-dale’s findings about like product, regional industry, and cumulation. He then found deterioration in the financial performance of the domestic industry, and considered whether there was material injury by reason of LTFV imports. He found evidence of a significant volume of imports, underselling, depression of domestic prices, and an adverse impact on the domestic injury. Based on all these factors, he found material injury by reason of LTFV imports from Mexico. Finally, he concluded that the statutory criteria for injury in a regional investigation had been met because the effect of the imports was felt throughout the region, and there was no evidence to indicate that individual producers were not injured.

III.

STANDARD OF REVIEW

ITC’s determination shall be upheld unless it is “unsupported by substantial evidence on the record, or otherwise not in accordance with law.” 19 U.S.C. § 1516a(b)(1)(B) (1988).

IV.

DISCUSSION

A. Regional Industry Analysis

CEMEX challenges ITC’s regional industry analysis on two grounds: misinterpretation of the “all or almost all” standard; and failure to employ a disaggregate analysis, or an aggregate approach with a safeguard to ensure an accurate finding is made.

1. “All, or Almost All” Standard

ITC’s task is to determine whether an industry in the United States is materially injured, or threatened with material injury by reason of imports or sales at LTFV. See 19 U.S.C. § 1673d(b)(l) (1988). An industry consists of “domestic producers as a whole of a like product, or those producers whose collective output of the like product constitutes a major proportion of the total domestic production of that product.” 19 U.S.C. § 1677(4)(A) (1988) (emphasis added). Under certain circumstances set forth in the statute, ITC may divide the United States into two or more regional markets, and treat producers in each market as a separate industry. 19 U.S.C. § 1677(4)(C) (1988). In such cases, material injury to an industry may be found “if the producers of all, or almost all, of the production” within the regional market suffer material injury due to the dumped imports. Id. (emphasis added) (“regional injury provision”). 1

*293 Here, ITC found that the region consisted of producers in the southern-tier states; it then found material injury to producers of “all or almost all” of the cement production in the region. Final Det., at 51, 66. CEMEX argues, however, that the decision is flawed because the “all or almost all” language requires a finding of material injury to eighty or eighty-five percent of production, and no such finding was made in this case.

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Bluebook (online)
790 F. Supp. 290, 16 Ct. Int'l Trade 251, 16 C.I.T. 251, 14 I.T.R.D. (BNA) 1190, 1992 Ct. Intl. Trade LEXIS 50, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cemex-sa-v-united-states-cit-1992.