Tembec, Inc. v. United States

441 F. Supp. 2d 1302, 30 Ct. Int'l Trade 958, 30 C.I.T. 958, 28 I.T.R.D. (BNA) 2119, 2006 Ct. Intl. Trade LEXIS 107
CourtUnited States Court of International Trade
DecidedJuly 21, 2006
DocketConsol. 05-00028
StatusPublished
Cited by13 cases

This text of 441 F. Supp. 2d 1302 (Tembec, Inc. 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
Tembec, Inc. v. United States, 441 F. Supp. 2d 1302, 30 Ct. Int'l Trade 958, 30 C.I.T. 958, 28 I.T.R.D. (BNA) 2119, 2006 Ct. Intl. Trade LEXIS 107 (cit 2006).

Opinion

OPINION

PER CURIUM.

The Canadian lumber industry, the Canadian federal government, and several of *1306 Canada’s provincial governments seek to invalidate the action of the United States Trade Representative (“USTR”) ordering implementation of an International Trade Commission (“ITC”) determination finding an affirmative threat of material injury arising from imports of Canadian softwood lumber into the United States. Plaintiff Tembec, Inc. (“Tembec”), Plaintiff-Inter-venor Canadian Lumber Trade Alliance (“CLTA”), and Plaintiff-Intervenors the Governments of Canada 1 (collectively “Plaintiffs”) allege that the United States has illegally continued to enforce anti-dumping (“AD”) and countervailing duty (“CVD”) orders following the illegal implementation of an affirmative injury determination issued by the ITC pursuant to section 129 of the Uruguay Round Agreements Act (“URAA”). 2 Defendant United States and Defendant-Intervenor Coalition for Fair Lumber Imports Executive Committee (“CFLI”) (collectively “Defendants”) move to dismiss pursuant to US-CIT Rules 12(b)(1), for lack of subject matter jurisdiction, and 12(b)(5), for failure to state a claim upon which relief can be granted. See Def.’s Mem. Supp. Mot. Dismiss 1 (“Def.’s Mem.”); Def.-Interve-nor’s Mem. Law Supp. Mot. Dismiss 1 (“Def.-Int.’s Mem.”). Plaintiffs cross-move for summary judgment. The court grants Plaintiffs’ motions in part and finds that the USTR improperly interpreted and applied section 129. The court reserves decision on the remedy to be imposed.

I. Procedural History 3

Softwood lumber has been a perennial sore-spot in trade relations between the United States and Canada. 4 The U.S. softwood lumber industry has long main *1307 tained that Canadian softwood lumber exports are sold at “less than fair value” in the United States and that Canada subsidizes the Canadian softwood lumber industry, injuring the U.S. industry. For five years, litigation over Canadian softwood lumber imports was limited by a 1996 agreement governing the importation of softwood lumber from Canada. See Canadian Exports of Softwood Lumber, 61 Fed. Reg. 28,626 (U.S. Trade Rep. June 5,1996) (notice of agreement; monitoring and enforcement pursuant to sections 301 and 306). That hiatus ended when the agreement expired on March 31, 2001. See Certain Softwood Lumber Products from Canada, 66 Fed.Reg. 21,328, 21,331 (Dep’t Commerce Apr. 30, 2001) (notice of initiation of antidumping duty investigation). Following expiration of the agreement, on April 2, 2001, CFLI and several other U.S. entities filed a petition with U.S. Department of Commerce (“Commerce”) and the ITC, alleging that an industry in the United States was materially injured and threatened with material injury by reason of subsidized and less-than-fair-value imports of softwood lumber from Canada. 5 See Softwood Lumber from Canada, 66 Fed.Reg. 18,508 (Int’l Trade Comm’n Apr. 9, 2001) (institution of countervailing duty and antidumping investigations and scheduling of preliminary phase investigations). The ITC instituted investigations pursuant to that petition on April 9, 2001. Id.

On May 16, 2002, the ITC issued a final determination that the domestic industry was threatened with material injury by reason of imports of softwood lumber from Canada. Softwood Lumber from Canada, Inv. Nos. 701-TA-414, 731-TA-928 (Final), USITC Pub. 3509 (May 2002) (“May 16, 2002 Determination”). On May 22, 2002, Commerce issued AD and CVD orders on certain softwood lumber products from Canada. Certain Softivood Lumber Products from Canada, 67 Fed.Reg. 36,-068 (Dep’t Commerce May 22, 2002) (notice of amended final determination of sales at less than fair value and notice of antidumping order); Certain Softivood Lumber Products from Canada, 67 Fed. Reg. 36,070 (Dep’t Commerce May 22, 2002) (notice of amended final affirmative countervailing duty determination and notice of countervailing duty order) (collectively “May 22, 2002 Orders”). That day, CLTA and the Ontario Forest Industries Association filed petitions for binational panel review with the U.S. section of the North American Free Trade Agreement (“NAFTA”) Secretariat, later followed by petitions from Tembec and the Ontario Lumber Manufacturers Association. See North American Free-Trade Agreement, Article 190k NAFTA Panel Reviews, 67 Fed.Reg. 41,955 (Dep’t Commerce June 20, 2002) (notice of first request for panel review). While the NAFTA Panel reviewed the ITC’s May 16, 2002 Determination, in April 2003, the Canadian government requested the formation of a World Trade Organization (“WTO”) panel to review the ITC’s May 16, 2002 Determina *1308 tion for consistency with the WTO Anti-dumping and Subsidies agreements. 6 See Pis.’ J. Statement of Undisputed Facts ¶ 12. Thus, the ITC’s May 16, 2002 Determination was concurrently subject to review in two separate fora, applying different bodies of law.

The NAFTA Panel issued its decision on September 5, 2003, finding that the ITC’s injury determination was not supported by substantial evidence or in accordance with U.S. law. See In the Matter of Certain Softwood Lumber Products from Canada, USA-CDA-2002-1904-07, Panel Decision (Sept. 5, 2003) (“NAFTA First Remand”). The NAFTA Panel therefore remanded to the ITC with instructions to report back within one hundred days. Id. at 115. On December 15, 2003, the ITC issued its remand determination, again finding an affirmative threat of injury. See In the Matter of Certain Softwood Lumber Products from Canada, USA-CDA2002-1904-07, Remand Decision, at 3 (Apr. 19, 2004) (“NAFTA Second Remand”). On April 19, 2004, the NAFTA Panel issued its Second Remand report, finding that the ITC’s remand determination was not supported by substantial evidence or in accordance with U.S. law. Id. at 51-52. The ITC was given 21 days in which to issue a second remand determination. Id. at 53.

Meanwhile, on March 22, 2004, the WTO Panel issued its decision finding that the ITC’s affirmative determination was not consistent with the United States’ WTO obligations. Panel Report, United States — Investigation of the International Trade Commission in Softwood Lumber from Canada, WT/DS277/R (Mar. 22, 2004) (“WTO Panel report”). On April 26, 2004, the Dispute Settlement Body (“DSB”) of the WTO adopted the WTO Panel report. Rather than appeal to the WTO Appellate Body (“AB”), on June 14, 2004, the USTR sent a letter, pursuant to section 129(a)(1) of the URAA, to the ITC requesting an advisory report as to whether the ITC would be able to implement the WTO Panel report in accordance with Title VII of the Trade Act of 1930. See Letter from Robert B. Zoellick, USTR, to Deanna T. Okun, Chairman, ITC (June 14, 2004) AR 2.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

V.O.S. Selections, Inc. v. Trump
2025 CIT 66 (Court of International Trade, 2025)
Invenergy Renewables LLC v. United States
2019 CIT 153 (Court of International Trade, 2019)
Almond Bros. Lumber v. United States
721 F.3d 1320 (Federal Circuit, 2013)
Advanced Tech. & Materials Co., Ltd. v. United States
2011 CIT 105 (Court of International Trade, 2011)
Almond Bros. Lumber Co. v. United States
651 F.3d 1343 (Federal Circuit, 2011)
Andaman Seafood Co., Ltd v. United States
675 F. Supp. 2d 1363 (Court of International Trade, 2010)
Andaman Seafood Co. v. United States
2010 CIT 12 (Court of International Trade, 2010)
Canadian Wheat Board v. United States
580 F. Supp. 2d 1350 (Court of International Trade, 2008)
ThyssenKrupp Acciai Speciali Terni S.P.A. v. United States
572 F. Supp. 2d 1323 (Court of International Trade, 2008)
Tembec, Inc. v. United States
475 F. Supp. 2d 1393 (Court of International Trade, 2007)
Ontario Forest Industries Assoc v. United States
444 F. Supp. 2d 1309 (Court of International Trade, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
441 F. Supp. 2d 1302, 30 Ct. Int'l Trade 958, 30 C.I.T. 958, 28 I.T.R.D. (BNA) 2119, 2006 Ct. Intl. Trade LEXIS 107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tembec-inc-v-united-states-cit-2006.