Publication of a Report to the President on the Effect of Automobile and Automobile-Part Imports on the National Security

CourtDepartment of Justice Office of Legal Counsel
DecidedJanuary 17, 2020
StatusPublished

This text of Publication of a Report to the President on the Effect of Automobile and Automobile-Part Imports on the National Security (Publication of a Report to the President on the Effect of Automobile and Automobile-Part Imports on the National Security) is published on Counsel Stack Legal Research, covering Department of Justice Office of Legal Counsel primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Publication of a Report to the President on the Effect of Automobile and Automobile-Part Imports on the National Security, (olc 2020).

Opinion

(Slip Opinion)

Publication of a Report to the President on the Effect of Automobile and Automobile-Part Imports on the National Security The President may direct the Secretary of Commerce not to publish a confidential report to the President under section 232 of the Trade Expansion Act of 1962, notwithstand- ing a recently enacted statute requiring publication within 30 days, because the report falls within the scope of executive privilege and its disclosure would risk impairing ongoing diplomatic efforts to address a national-security threat and would risk interfer- ing with executive branch deliberations over what additional actions, if any, may be necessary to address the threat.

January 17, 2020

MEMORANDUM OPINION FOR THE DEPUTY COUNSEL TO THE PRESIDENT

In February 2019, the Secretary of Commerce submitted a report to the President under section 232 of the Trade Expansion Act of 1962, 19 U.S.C. § 1862, advising him that imports of certain automobiles and automobile parts threaten to impair the national security and recommend- ing action to address that threat. Although section 232 authorized the President to impose tariffs in response, the President deferred a decision on that remedy and instead directed the United States Trade Representa- tive (“USTR”) to pursue negotiations with foreign countries that are the sources of those imports. Section 232 contemplates that the Secretary will eventually publish his report to the President, see id. § 1862(b)(3)(B), but the Secretary has kept the report confidential while USTR’s negotiations continue. In a recent appropriations act, however, Congress sought to accelerate the report’s disclosure by requiring the Secretary to publish it by January 19, 2020. Commerce, Justice, Science, and Related Agencies Appropriations Act, 2020, Pub. L. No. 116-93, div. B, § 112, 133 Stat. 2317, 2385, 2395–96 (Dec. 20, 2019). You have asked whether the President may direct the Secretary to withhold the report beyond the statutory deadline while negotiations continue and the President considers what additional measures may be necessary to address the national-security threat. We conclude that the Executive Branch may rely on the constitutional doctrine of executive privilege to decline to release the report at the deadline. The report is a confidential presidential communication, the disclosure of which would risk impairing ongoing diplomatic efforts to address a national-security

1 Opinions of the Office of Legal Counsel in Volume 44

concern. Disclosure would also risk interfering with executive branch deliberations over what additional actions, if any, may be necessary to address the threat. Although Congress may have a legitimate interest in ultimately reviewing the report to understand the basis for the President’s exercise of his section 232 authority, that generalized interest does not overcome the constitutionally rooted confidentiality interests that justify withholding the report until the resolution of diplomatic negotiations and action by the President. 1

I.

A.

Section 232 of the Trade Expansion Act delegates to the President the authority to adjust imports in order to ensure that the Nation’s domestic industrial capacity remains sufficient for the requirements of national security. See 19 U.S.C. § 1862(d). The statute broadly authorizes the President to take “action” that “in the judgment of the President . . . must be taken to adjust” imports “so that such imports will not threaten to impair the national security.” Id. § 1862(c). Before the President may take such an action, however, the Secretary of Commerce must conduct, on request or his own motion, an “appropriate investigation to determine the effects on the national security of imports of the article.” Id. § 1862(b)(1)(A). Within 270 days after the Secretary initiates the investigation, he “shall submit to the President a report on the findings of such investigation” and his recommendations “for action or inaction” under section 232. Id. § 1862(b)(3)(A). If the Secretary finds that the relevant imports “threaten to impair the national security,” then the Presi- dent has 90 days to decide whether he agrees with that finding. Id. § 1862(c)(1)(A). If the President does, then he shall “determine the nature and duration of the action that, in the judgment of the President, must be taken to adjust the imports of the article and its derivatives so that such imports will not threaten to impair the national security.” Id. § 1862(c)(1)(A)(ii). The President’s authority under section 232 to adjust imports includes a range of options that may be used alone or in combination. He may

1 In preparing this opinion, we consulted with the Office of the General Counsel of the

Department of Commerce and the Office of the General Counsel of USTR.

2 Publication of Report to President on Automobile and Automobile-Part Imports

impose a tariff or quota on imports of the article in question. See Fed. Energy Admin. v. Algonquin SNG, Inc., 426 U.S. 548, 561 (1976); The President’s Power to Impose a Fee on Imported Oil Pursuant to the Trade Expansion Act of 1962, 6 Op. O.L.C. 74, 75–77 (1982). The President may also launch negotiations for agreements with other countries to address the threatened impairment of the national security. See 19 U.S.C. § 1862(c)(3)(A). The statute provides for the President to implement any such action within 15 days of that decision. Id. § 1862(c)(1)(B). 2 No later than 30 days after the decision, the President shall also report to Congress on “the reasons why the President has decided to take action, or refused to take action,” under the statute. Id. § 1862(c)(2). If the President chooses to pursue negotiations, and those negotiations do not remove the threat to national security, then the statute contemplates that the President may direct additional measures. If, after 180 days, no international agreement has been reached, or if any agreement “is not being carried out or is ineffective,” then the President “shall take such other actions as the President deems necessary to adjust the imports of [the] article so that such imports will not threaten to impair the national security.” Id. § 1862(c)(3)(A). The statute provides that the President shall publish in the Federal Register notice of any such action taken, and similarly that he shall publish a determination to take no additional action. Id. § 1862(c)(3)(A), (B). Section 232 contemplates that the Secretary of Commerce will publish the results of his investigation, except as necessary to protect classified or proprietary information. First, section 232 requires publication of “a report” “[u]pon the disposition of each request, application, or motion” for an investigation under section 232(b). Id. § 1862(d)(1); see also Trade Expansion Act of 1962, Pub. L. No. 87-794, § 232(d), 76 Stat. 872, 877

2 We have repeatedly recognized that the President has authority to modify action he

has taken to adjust imports under section 232 and its predecessors without a new investi- gation. See, e.g., Presidential Authority to Adjust Ferroalloy Imports Under § 232(b) of the Trade Expansion Act of 1962, 6 Op. O.L.C. 557, 562 (1982) (“Ferroalloy Imports”); Restrictions on Oil Imports, 43 Op. Att’y Gen. 20, 21–23 (1975) (Saxbe, A.G.).

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