San Vicente Camalu Spr De Ri v. United States

491 F. Supp. 2d 1186, 31 Ct. Int'l Trade 599, 31 C.I.T. 599, 29 I.T.R.D. (BNA) 1710, 2007 Ct. Intl. Trade LEXIS 58
CourtUnited States Court of International Trade
DecidedApril 17, 2007
DocketSlip Op. 07-58; Court 02-00811
StatusPublished
Cited by1 cases

This text of 491 F. Supp. 2d 1186 (San Vicente Camalu Spr De Ri 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.

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San Vicente Camalu Spr De Ri v. United States, 491 F. Supp. 2d 1186, 31 Ct. Int'l Trade 599, 31 C.I.T. 599, 29 I.T.R.D. (BNA) 1710, 2007 Ct. Intl. Trade LEXIS 58 (cit 2007).

Opinion

OPINION

RIDGWAY, Judge.

In this action, Plaintiff San Vicente Camalu SPR de RI (“SVC”) contests the 2002 Suspension Agreement between the U.S. Department of Commerce and certain growers/exporters of fresh tomatoes from Mexico. See Suspension of Antidumping Investigation: Fresh Tomatoes From Mexico, 67 Fed.Reg. 77,044, 77,045 (Dec. 16, 2002) (“Notice of 2002 Suspension Agreement”). SVC contends that the 2002 Suspension Agreement is unlawful, because the timing of that agreement was not consistent with the 1997 amendments to the Commerce Department regulations governing such agreements.

Pending before the Court are Plaintiffs Motion for Judgment on the Agency Record and supporting briefs, which urge that this matter be remanded to Commerce with instructions to immediately rescind the 2002 Suspension Agreement and to issue the Final Determination in the underlying antidumping investigation forthwith. See generally Memorandum of Points and Authorities in Support of San Vicente Camalu’s Motion for Judgment on the Agency Record (“Pl.’s Brief’); Reply Memorandum in Response to Defendant’s Memorandum in Opposition to Plaintiffs Motion for Judgment on the Agency Record (“PL’s Reply Brief’); Plaintiffs Surre-ply Brief in Response to Defendant’s Sur-reply (“PL’s Surreply Brief’).

The Government opposes Plaintiffs motion. The Government disputes SVC’s fundamental premise, the applicability of the regulations as amended in 1997. According to the Government, the negotiation of the 2002 Suspension Agreement was subject to — and complied with — Commerce’s 1996 regulations, which set a more relaxed timetable for suspension agreements, and required only that any such agreement be concluded before the deadline for issuance of the agency’s Final Determination in the underlying antidumping investigation. See generally Defendant’s Memorandum in Opposition to Plaintiffs Motion for Judgment on the Agency Record (“Def.’s Brief’); Defendant’s Surreply in Response to Plaintiffs Reply Brief (“Def.’s Surreply Brief’). 1

For the reasons set forth below, SVC’s Motion for Judgment on the Agency Record is denied, and the Commerce Department’s 2002 suspension of the resumed antidumping investigation of fresh tomatoes from Mexico is sustained.

I. Background

The gravamen of SVC’s complaint is that — some eleven years after the Commerce Department began its antidumping investigation of fresh tomatoes from Mexi *1190 co — the agency has yet to issue its Final Determination in that investigation. The investigation has been twice put on “hold” for years, pursuant to suspension agreements between Commerce and growers/exporters of Mexican tomatoes, to which SVC has not been a party. Moreover, because SVC is not a party to the 2002 Suspension Agreement now in place, the Mexican government will not permit SVC to export its produce to the United States. 2 If the 2002 Suspension Agreement is rescinded and Commerce’s Final Determination issues in the resumed antidumping investigation (with findings comparable to those in the Preliminary Determination), SVC expects that it would benefit from a relatively low dumping margin (as compared to those of other Mexican growers/exporters), and presumably would be able to capitalize on that fact and enjoy a competitive advantage in the U.S. market.

The antidumping investigation of fresh tomatoes from Mexico was initiated in mid-April 1996. See Initiation of Anti-dumping Duty Investigation: Fresh Tomatoes from Mexico, 61 Fed.Reg. 18,377 (April 25, 1996). In mid-May 1996, the International Trade Commission (“ITC”) made an affirmative preliminary injury determination. See Notice of Preliminary Determination of Sales at Less Than Fan-Value and Postponement of Final Determination: Fresh Tomatoes From Mexico, 61 Fed.Reg. 56,608, 56,608 (Nov. 1, 1996) (“Notice of AD Preliminary Determination”) (noting ITC affirmative preliminary injury determination). But, several weeks before Commerce was due to issue its Preliminary Determination in the antidumping investigation, Commerce and certain Mexican tomato growers/exporters — not including SVC — initialed a proposed suspension agreement. See Notice of AD Preliminary Determination, 61 Fed.Reg. at 56,608.

As the name suggests, a suspension agreement is an agreement between Commerce and foreign exporters accounting for “substantially all” U.S. imports of the subject merchandise, “suspending” an anti-dumping or countervailing duty investigation based on specific commitments by the foreign signatories. In essence, a suspension agreement is “a unique form of settlement agreement: a settlement agreement to which the complainant — that is, the domestic industry — is not a signatory.” See Bethlehem Steel Corp. v. United States, 25 CIT 519, 520 & n. 5, 521-23, 146 F.Supp.2d 927, 928-29 & n. 5, 930-32 (2001) (“Bethlehem Steel I”) (citing Senator Heinz, 125 Cong. Rec. 20,168 (1979), and generally outlining provisions of suspension agreement statute). Although they are intended to be used only rarely, Congress has recognized that, in appropriate cases, such agreements may be important to both importers and the domestic industry as a “means of achieving the remedial purposes of the [antidumping] law in as short a time as possible and with a minimum expenditure of resources by all parties involved.” H. Rep. No. 96-317 at 63 (1979) (quoted in Bethlehem Steel I, 25 CIT at 522, 146 F.Supp.2d at 931). 3

*1191 The controversy in this case focuses not on the 1996 Suspension Agreement, but on the second suspension agreement — the 2002 Suspension Agreement — and on the applicability of the 1996 version of the pertinent regulations versus those regulations as amended in 1997. Like the suspension agreement statute (both then and now), the regulations in place in 1996 permitted Commerce to enter into a suspension agreement as late as the deadline for issuance of its final determination (provided that interested parties had 30 days’ advance notice and an opportunity to comment on the proposed suspension agreement). See 19 U.S.C. § 1673c(e); 19 C.F.R. § 353.18 (1996). But the amended regulations greatly accelerate the schedule for negotiation of suspension agreements.

As amended in 1997, Commerce’s regulations require that any suspension agreement be concluded early in an investigation, to maximize the potential resource savings associated with the agreement, and — in particular — to avoid the “enormous burden on parties and on the Department [of Commerce]” inherent in the simultaneous consideration of a proposed agreement and the preparation of a final determination. See Bethlehem Steel Corp. v. United States, 25 CIT 895, 906 n. 24, 916 & n. 42, 159 F.Supp.2d 730, 742 n. 24, 751 & n. 42 (2001) (quoting

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491 F. Supp. 2d 1186, 31 Ct. Int'l Trade 599, 31 C.I.T. 599, 29 I.T.R.D. (BNA) 1710, 2007 Ct. Intl. Trade LEXIS 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/san-vicente-camalu-spr-de-ri-v-united-states-cit-2007.