Nitrogen Solutions Fair Trade Comm'n. v. United States, (2005)

Extract

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Nitrogen Solutions Fair Trade Comm'n. v. United States, (2005)

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UNITED STATES COURT OF INTERNATIONAL TRADE BEFORE: HONORABLE RICHARD W. GOLDBERG, SENIOR JUDGE

NITROGEN SOLUTIONS FAIR TRADE COMMITTEE,

Plaintiff, v. UNITED STATES,

Defendant,

and

JSC NEVINNOMYSSKIJ AZOT INC., TRANSAMMONIA, INC. AND J.R. SIMPLOT COMPANY, Defendant- Intervenors.

[ITC's final negative injury and threat determination sustained.]

Date: January 31, 2005 Akin, Gump, Strauss, Hauer & Feld, LLP (Valerie A. Slater and Margaret Chisholm Marsh) for Plaintiff Nitrogen Solutions Fair Trade Committee.

James Lyons, Acting General Counsel, U.S. International Trade Commission (Michael Kenneth Haldenstein) for Defendant United States.

White & Case, LLP (Walter J. Spak, Frank H. Morgan, and Lyle B. Vander Schaaf) for Defendant-Intervenors JSC Nevinnomysskij Azot Inc. and Transammonia, Inc.

Miller & Chevalier Chartered (Peter J. Koenig) for Defendant-Intervenor J.R. Simplot Company.

PUBLIC VERSION

Court No. 03-00260

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OPINION

GOLDBERG, Senior Judge: In this action, Plaintiff Nitrogen Solutions Fair Trade Committee challenges the final negative injury and threat determination of the United States International Trade Commission ("ITC") in the antidumping proceedings involving Urea Ammonium Nitrate Solutions from Belarus, Russia and Ukraine, 68 Fed. Reg. 18673 (Apr. 16, 2003) ("Notice of Determination") and USITC Pub. 3591, Inv. Nos. 731-TA-1006, 1008, and 1009 (Apr. 2003) ("Views of the Commission") (together, the "Final Determination"). Pursuant to USCIT Rule 56.2, Plaintiff moves for judgment on the agency record.

For the reasons that follow, the Court sustains the Final Determination. I. BACKGROUND

Plaintiff is an association of domestic producers of urea ammonium nitrate ("UAN"). Notice of Determination at 18674. UAN is a liquid nitrogen fertilizer used primarily in the United States ("U.S.") for row crops. Views of the Commission at 5. It is a commodity product; UAN from different sources (including imports) is commingled throughout the distribution system. Id. at 14. Natural gas is an important material input used to produce UAN,

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accounting for over half of its cost of production. Id. In late 2000 and early 2001, natural gas prices in the U.S. increased dramatically. Id. During this same period, domestic UAN prices rose, domestic UAN consumption fell and the volume of UAN imports to the U.S. increased. Id. at 13-16. In addition, the domestic UAN industry lost market share and suffered financially. Id. at 25. Natural gas prices began to normalize in mid 2001. Id. at 18. Imports also began to decline, although remained at historically high levels. Id.

On April 19, 2002, Plaintiff filed petitions with the U.S. Department of Commerce and the ITC alleging that UAN from Belarus, Lithuania, Russia and Ukraine was being sold in the U.S. at less than fair value and was causing material injury or threatening to cause material injury to the domestic UAN industry. The ITC initiated an antidumping investigation on that same day. 67 Fed. Reg. 20994 (Apr. 29, 2002). On June 4, 2002, the ITC issued a unanimous affirmative preliminary injury and threat determination as to UAN i...

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