National Pork Producers Council v. United States

661 F. Supp. 633, 11 Ct. Int'l Trade 398, 11 C.I.T. 398, 1987 Ct. Intl. Trade LEXIS 98
CourtUnited States Court of International Trade
DecidedMay 28, 1987
DocketCourt 85-09-01209
StatusPublished
Cited by7 cases

This text of 661 F. Supp. 633 (National Pork Producers Council 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
National Pork Producers Council v. United States, 661 F. Supp. 633, 11 Ct. Int'l Trade 398, 11 C.I.T. 398, 1987 Ct. Intl. Trade LEXIS 98 (cit 1987).

Opinion

MEMORANDUM OPINION AND ORDER

DiCARLO, Judge:

Plaintiffs bring an action under section 516A of the Tariff Act of 1930, as amended, 19 U.S.C. § 1516a(a)(2)(B)(ii) (Supp. Ill 1985) challenging the final negative injury determination by the United States International Trade Commission (Commission) in Live Swine and Pork From Canada, Inv. No. 701-TA-224, USITC pub. 1733 (1985). The Court has jurisdiction under 28 U.S.C. §§ 1581(e) and 2632(c) (1982). The Court holds that the challenged determination is supported by substantial evidence and in accordance with law.

I. Background

The National Pork Producers Council (NPPC) representing domestic producers of live swine filed a petition with the Department of Commerce, International Trade Administration and the Commission seeking the imposition of countervailing duties on imports of live swine and fresh, chilled or frozen pork from Canada. The Wilson Foods Corporation later joined in the petition as a co-petitioner representing pork packers.

In its final determination, the Commission reversed a preliminary decision that *635 swine growers and unprocessed pork packers should be treated as a single industry in determining material injury. USITC pub. 1733 at 3-7; see Live Swine and Pork From Canada, Inv. No. 701-TA-224, USITC pub. 1625 (1984). The final determination held that live swine and fresh, chilled or frozen pork are two distinct products, that growers constitute the domestic industry producing live swine, and that only pork packers constitute the domestic industry producing fresh, chilled or frozen pork because there is not sufficient economic integration between swine growers and pork packers to justify including the growers in the domestic industry producing unprocessed pork. The Commission found that the domestic industry producing live swine is materially injured by reason of Canadian imports of live swine, but that the domestic industry producing unprocessed pork is not materially injured or threatened with material injury, and such industry is not materially retarded, by reason of imports from Canada of fresh, chilled or frozen pork. USITC pub. 1733 at 1-18.

Plaintiffs move pursuant to Rule 56.1 of the rules of this Court for judgment upon the agency record. The questions presented are (1) whether the Commission erred in its determination that the domestic unprocessed pork producing industry consists only of the domestic pork packers and does not include the domestic swine growers because of a lack of sufficient economic integration between swine growers and pork packers, (2) whether the finding of no material injury to a domestic pork producing industry, consisting solely of pork packers, by reason of Canadian imports of fresh, chilled or frozen pork is supported by substantial evidence and (3) whether the finding of no threat of material injury to such domestic pork producing industry by reason of Canadian pork imports is supported by substantial evidence.

II. Discussion

A. Determination of the Domestic Industry

In deciding whether to include swine growers within the domestic industry producing fresh, chilled or frozen pork, the Commission noted that in several prior agricultural investigations growers of a raw agricultural product and producers of a processed agricultural product were treated as a single industry when certain criteria were met:

First, the Commission has considered the extent to which the raw product enters into a single line of production resulting in the processed product. Second, the Commission has examined the degree of economic integration between growers and packers, often looking at the legal relationship between the two groups. For example, if there is substantial interlocking ownership, if there are shared revenues, or if, contractually, the prices paid to producers directly control the prices to growers, then both groups can be more certainly affected in a like manner.

USITC pub. 1733 at 5-6.

Applying these factors in the live swine and pork investigation, the Commission concluded:

Initially, we note that the “single, continuous line of production” standard has been met in that the raw product is primarily sold in only one market, and the primary purpose of raising slaughter hogs is to produce pork meat. The requisite integration of economic interest in this investigation, however, is lacking. Less than 5 percent of packing facilities are owned by the growers. Virtually none of the grower facilities are owned by packers. Further, the petitioners have conceded that the prices for hogs are not linked by contract to the prices received by the packers.
While the absence of a legal relationship between growers and packers is not determinative of the absence of economic integration, we are unpersuaded by the petitioners’ contention that an integration of economic interest can be reflected solely by a high price correlation between live swine and fresh, chilled, or frozen pork. We, therefore, cannot find that growers should be included into a *636 single industry with packers producing pork.

Id. at 6-7 (footnotes omitted).

Plaintiffs argue that the Commission’s exclusion of the swine growers from the unprocessed pork industry on the basis that there is a lack of sufficient economic integration between swine growers and pork packers is contrary to congressional intent and claim that a finding of a single continuous line of production has been sufficient in prior Commission investigations for including growers of a raw agricultural product with the producers of the processed product when the processing added only minimal value to the processed product investigated. Plaintiffs assert alternatively that even if economic integration may be required, it was demonstrated in this case.

In reviewing final Commission determinations in countervailing duty investigations, the Court is directed by Congress to hold unlawful those determinations found “to be unsupported by substantial evidence on the record, or otherwise not in accordance with law.” 19 U.S.C. § 1516a(b)(l)(B) (1982). As stated by our appellate court, “[a] reviewing court must accord substantial weight to an agency’s interpretation of a statute it administers.” American Lamb Co. v. United States, 4 Fed.Cir. -, 785 F.2d 994, 1001 (Fed.Cir.1986) (citing Zenith Radio Corp. v. United States, 437 U.S. 443, 450-51, 98 S.Ct. 2441, 2445, 57 L.Ed.2d 337 (1978); Udall v. Tallman, 380 U.S. 1, 16, 85 S.Ct.

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Bluebook (online)
661 F. Supp. 633, 11 Ct. Int'l Trade 398, 11 C.I.T. 398, 1987 Ct. Intl. Trade LEXIS 98, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-pork-producers-council-v-united-states-cit-1987.