International Labor Rights Education and Research Fund v. George Bush, in His Official Capacity as PresidentInternational Labor Rights Education and Research Fund v. George Bush, in His Official Capacity as President
Lead Opinion
This сase was heard on an appeal from the United States District Court for the District of Columbia.
IT IS ORDERED that the judgment of the district court dismissing this action be affirmed for the separate reasons expressed in the accompanying concurring statements by Judge Sentelle and Judge Henderson. Chief Judge Mikva has filed a dissenting opinion.
Concurrence Opinion
concurring:
The appellants brought this action seeking to compel enforcement of the “worker rights” provisions of the Generalized System of Preferences, 19 U.S.C. §§ 2461-66, (GSP). The district court dismissed the complaint, holding the appellants’ claims were nonjusticiable. International Labor Rights Educ. & Research Fund v. Bush,
The GSP authorizes the President to “provide duty-free treatment for any eligible article from any beneficiary developing country.” 19 U.S.C. § 2461. The GSP further identifies beneficiary developing countries as those which the President has so designated pursuant to various statutory criteria. 19 U.S.C. § 2462. In 1985, Congress amended the GSP to add the worker rights provisions which require the President to deny beneficiary developing country status to any country which has not made some effort to extend employment rights to workers. See 19 U.S.C. § 2462(b)(7) (“the President shall not designate any country a beneficiary developing country under this section ... if such country has not taken or is not taking steps to afford internationally recognized worker rights to workers in the country (including any designated zone in that country)”); 19 U.S.C. § 2462(c)(7) (directing the President, “[i]n determining whether to designate any country a beneficiary developing country,” to “take into account ... whether or not such country has taken or is taking steps to afford to workers in that country (including any designated zone in that country) internationally recognized worker rights”); 19 U.S.C. § 2464(c)(2)(A) (requiring the President to “conduct a general review of eligible articles based on the considerations described in section 2461 or 2462(c) of this title” no later than January 4, 1987); 19 U.S.C. § 2464(b) (“[t]he President shall, after complying with the requirements of section 2462(a)(2) of this title, withdraw or suspend the designation of
The appellants’ complaint charged the appellees with failing to enforce the worker rights provisions and sought to compel enforcement. The appellees moved to dismiss the complaint for lack of jurisdiction based on 28 U.S.C. § 1581(i)(2), which grants the Court of International Trade “exclusive jurisdiction of any civil action commenced against the United States, its agencies, or its officers, that arises out of any law of the United States providing for ... (2) tariffs, duties, fees, or other taxes on the importation of merchandise for reasons other than the raising of revenue.” The district court rejected the appellees’ argument, reasoning:
[Tjhis action does not appear to arise out of a law of the United States “providing for ... tariffs, duties, fees or other taxes on the importation of merchandise” within the meaning of 28 U.S.C. § 1581(i)(2). The GSP authorizes the Presidеnt to grant duty-free status to goods from “beneficiary developing countries,” 19 U.S.C. § 2461, and to withdraw, suspend or limit that status. 19 U.S.C. § 2464. These provisions do not constitute a law “providing for” tariffs, duties, fees or other taxes; they create conditions under which duties can be lifted or re-imposed, but these duties are “provided for,” i.e. furnished or supplied, see The American Heritage Dictionary of the English Language 1053 (1981), not by the GSP but by other statutes. Indeed, the GSP provision governing withdrawal, suspension or limitation from the program specifically states that “no rate of duty may be established in respect of any article pursuant to this section other than the rate that would apply but for this subchap-ter.” 19 U.S.C. § 2464(a)(1).
First, even under the district court’s narrow construction of the statutory language, I believe section 1581 is one “providing for” duties insofar as it permits the President to deny, suspend or revoke beneficiary developing country status and thereby impose, at least indirectly, import dutiеs. Moreover, the GSP was enacted as part of the Trade Act of 1974, 19 U.S.C. §§ 2101-2487, which expressly provides for adjustment of duty rates by the President. In any event, I find the district court’s construction overly restrictive. The phrase “providing for” has a broader meaning than the simple verb “provide” and can be construed to mean “relating to,” as the Supreme Court has done in considering this very provision. See K Mart Corp v. Cartier, Inc.,
My determination that the Court of International Trade has exclusive jurisdiction over this action is supported not only by the language of subsection 1581(i) but also by its legislative history and by the views of other courts. It is consistent with Congress’s characterization of the subsection as a “broad jurisdictional grant” enacted
For the preceding reasons, I would affirm the district court’s order of dismissal on the ground that the subject matter of this action is within the exclusive jurisdiction of the Court of International Trade.
Notes
. Exclusive jurisdiction of an appeal from a final decision of the Court of International Trade lies with the United States Court of Appeals for the Federal Circuit. 28 U.S.C. § 1295(a)(5).
. In 1982, the Court of Appeals for International Trade, Patents, and Trademarks was abolished and its appellate functions assumed by the newly created Court of Appeals for the Federal Circuit. See Federal Courts Improvement Act of 1982, Pub.L. No. 97-164, 96 Stat. 25.
. In view of my proposed disposition, I do not believe it necessary to reach the justiciability questions addressed by the district court and my colleagues.
Concurrence Opinion
concurring:
Though I join in affirming the dismissal of the present action, I do not hold Judge Henderson’s view that the Court of International Trade (“CIT”) has exclusive jurisdiction. On this issue I share the view of the District Court. I also share the District Court’s belief that this case is not justiciable, but on the ground that the “human rights” organizations and the labor unions lack standing.
I. DISTRICT COURT’S JURISDICTION
The argument for exclusive jurisdiction in the CIT rests on 28 U.S.C. § 1581(i)(2), which grants that court “exclusive jurisdiction of any civil action commenced against the United States, its agencies, or its officers that arises out of any law of the United States providing for ... (2) tariffs, duties, fees, or other taxes on the importation of merchandise for reasons other than the raising of revenue.” Id. (emphasis added). As the District Court noted, “this action does not appear to arise out of a law of the United States ‘providing for ’ ” the charges enumerated in § 1581(i)(2). International Labor Rights Educ. & Research Fund v. Bush,
I do not read K Mart Corp. v. Cartier, Inc.,
I do not read the decisions of the Court of Appeals for the Federal Circuit as being to the contrary. In North American Foreign Trading Corp. v. United States,
In short, though I do not think the issue free from doubt, I would conclude that the District Court did not err in its determination that the present action was outside the exclusive jurisdiction of the CIT. I would affirm the action of the District Court, but on a different basis. Regardless of whether the District Court is correct in its decision that the complaint states no justiciable claim (and it may well be correct), appellants have no standing under Article III of the Constitution to assert such a claim.
II. STANDING
Appellants fall into two groups: labor unions and “human rights” organizations. To invoke the Article III powers of the District Court, and derivatively succeed in this appeal, at least one of those groups must demonstrate standing in a constitutional sense. To do so, such group must allege and prove three elements: (1) personal injury; (2) fairly traceable to the defendants’ allegedly unlawful conduсt;
A. The “Human Rights” Organizations
Twelve of the appellant organizations describe themselves as “human rights” organizations.
I do not, of course, mean to imply that the allegations of injury stated by these organizations meet the causation and re-dressability tests. It certainly is not plain from the face of the complaint that the alleged failure of the agencies to enforce the GSP caused poverty and poor working conditions in “developing countries,” or that those conditions would be alleviated by the enforcement of the GSP. However, I do not address those questions as the “human rights” organizations do not even meet the first criterion for bringing them before us.
B. The Labor Organizations
The labor organizations
However, the unions do not make it past the other standing thresholds. Any causal connection between the grant of beneficiary developing country status to the countries in question and the loss of jobs is at best a tenuous one. And there is no possibility that the unions have crossed the
The alleged injury is that union members have lost jobs. The relief prayed is that the appellees be compelled to apply the GSP statute in a manner “consistent with the intent of Congress.” Brief for Appellants at 43. Should the appellees apply the statute in some manner dictated precisely by appellants, there is still no guarantee, nor even strong reаson to believe, that the members of the unions will regain their prior employment. Indeed, it may be that the working conditions in the foreign countries will improve as prayed by the “human rights” organizations. It may be that such improvement will be sufficiently costly that some of the members of the labor groups regain jobs as a result of less threatening competition from overseas, or it may not. It may be that no one will benefit, as the foreign competition will not make any changes and yet domestic producers will still not rehire union labor. These are simply a few of the limitless possibilities.
The attenuation of the injury alleged and the official action challenged by labor appellants is closely analogous to that of the petitioners in Allen v. Wright itself. In that case, the petitioners were parents of black public school children who alleged that the IRS unconstitutionally granted tax-exempt status to racially discriminatory private schools. Neither the petitioners nor their children had applied for admission to the schools whose exemptions they sought to end. Their alleged injury was that the children’s ability to receive education in a racially integrated school had been diminished in that without the tax exemption of the private schools, it was less likely that white persons would have taken their children out of the public schools. In rejecting that theory of standing, the Supreme Court treated the problem in terms of causation rather than re-dressability, holding that “the line of causation between that conduct and desegregation of respondents’ schools is attenuated at best.”
As we noted in Fulani v. Brady,
Chief Judge Mikva’s arguments to the contrary are well worded, but hardly convincing. He may well be correct that “Congress’s intentions about causation and re-dressability must be deferred to unless they are plainly irrational.” Dissent at 756. However, since Congress has expressed no such intention about causation and redressability relevant to the question before us, the statement does not affect my resolution. Congress has expressed its
It would be as accurate to say that the Supreme Court, in Allen v. Wright, ignored the dictates of the Constitution by not affording standing to the petitioners there as it is to charge that I have ignored congressional intent in not finding standing here.
III. CONCLUSION
For the reasons set forth above, I conclude that the organizations lack standing. For that reason, I join in the conclusion that the District Court’s dismissal must be affirmed.
. International Labor Rights Education and Research Fund; Human Rights Watch; North American Coalition for Human Rights in Korea; Lawyers Committee for Human Rights; Council on Hemispheric Affairs; Institute for Policy Studies; Asia Resource Center; Washington Office on Haiti; Massachusetts Labor Committee in Support of Democracy, Human Rights and Non-Intervention in Central America; American-Arab Anti-Discrimination Committee; Co-lumban Fathers Justice and Peace Office; and Bread for the World.
. American Federation of Labor and Congress of Industrial Organizations; International Union of Electronic, Electrical, Salaried, Machine, and Furniture Workers; International Union, United Automobile, Aerospace and Agricultural Implement Workers of America; American Federation of State, County and Municipal Workers; United Steelworkers of America; International Longshoremen’s and Warehousemen's Union; International Ladies Garment Workers Union; Amalgamated Clothing and Textile Workers Union; Communication Workers of America; International Association of Machinists & Aerospace Workers; and United Electrical Workers.
Dissenting Opinion
dissenting:
To improve labor conditions at home and abroad, Congress passed a law forbidding the Executive from giving trade preferences to developing countries that violate worker rights. A group of labor unions and human rights organizations claim that because the Executive has ignored the law and continued to give trade preferences to offending countries, they have suffered the very injuries that Congress sought to avoid. Since the law was passed expressly for their benefit, the unions seem ideally suited to challenge the Executive’s failure to enforce it. And their central claim— that the regulations implementing the statute are inconsistent with the statute itself — is plainly susceptible to judicial review. Although the political context of this case is controversial, in short, the statutory question is entirely straightforward. I think the District Court was wrong to dismiss the complaint as nonjusticiable, especially since it ignored the central claim, and I would reverse and remand with instructions to decide whether the regulations are consistent with the statute.
My colleagues, however, have resurrected jurisdictional objections that failed to persuade even the District Court, and have affirmed the dismissal of the complaint for two different reasons. I dissent, respectfully, from both. I agree with Judge Sentelle, with the District Court, and with the government (which conceded the point repeatedly at oral argument and af-terwards) that the Court of International Trade does not have exclusive jurisdiction over the case. And although I am prepared to agree that the human rights organizations lack standing, I find it inconceivable that thе labor unions lack standing. Their members are not only within the “zone of interest” Congress sought to protect; the law was passed specifically to protect their interests. They allege that their members are currently experiencing the very injury that Congress intended the statute to cure: pressure to make wage concessions, not merely (as Judge Sentelle suggests) loss of jobs. Under any standard of deference to Congress, it seems obvious to me that the injury would be redressed if the statute were enforced; and I am troubled that this Court has treated Congress's intentions so nonchalantly.
I. BACKGROUND
Because the statutory and procedural history is relevant to the jurisdictional claims, I think it deserves more detailed review than my colleagues have provided. The appellants, twenty-three labor unions and human rights organizations argue that President Bush, his Trade Representative, and five members of his cabinet have failed to enforce the worker rights provisions of the Generalized System of Preferencеs of the Trade Act of 1974 (GSP), 19 U.S.C. §§ 2461-66. The GSP was passed to allow countries that have been designated by the President as “beneficiary developing countries” (BDCs) to export goods duty-free to the United States. The original version contained seven conditions that the countries had to meet before the President
In 1984, the Reagan administration proposed a ten-year extension of the GSP without substantial changes. Congress, however, was concerned that the real beneficiaries of the program were “narrow privileged elites” in the BDCs, H.R.Rep. No. 90-1090 98th Cong., 2d Sess. 11, reprinted in 1984 U.S. Code Cong. & Admin.News 4910, 5111, and that the GSP program was encouraging U.S. employers to relocate to developing countries, where they could take advantage of cheap labor. Id. at 5111-12. To reduce the exploitation of workers abroad and the loss of jobs at home, Congress added a new condition: the President “shall not designate any country ... if such country has not or is not taking steps to afford internationally recognized worker rights to workers in the country.” 19 U.S.C. § 2462(b). Congress also included a five part definition of “internationally recognized worker rights” to clarify the standard, including the rights of association, collective bargaining, minimum wages, and occupational safety. Id. § 2462(a)(4).
The President, in turn, delegated authority for administering the GSP program to the U.S. Trade Representative. Exec. Order 11846, 40 Fed.Reg. 13456 (March 27, 1975). After the 1984 amendments, the committee responsible for administering the GSP (which includes all the appellees except for the President) promulgated regulations providing that an “interested party” can petition the GSP committee to review whether a country is in compliance with the worker rights standard. 15 C.F.R. Part 2007 (1988). In particular, the regulations require that a petition include “substantial new information” before a previously reviewed country will be reviewed again. 15 C.F.R. § 2007.1(a)(4).
Between 1985 and 1990, the twenty-three human rights organizations and labor unions submitted petitions under the regulations arguing that several BDCs had failed to comply with the worker rights standard. All of the groups then joined to seek judicial review of what they allege is the GSP Committee’s “systematic failure to enforce the mandatory language of the worker rights provision consistent with the intent of Congress.” Complaint M 53a-k.
After the District Court rejected the claim that the case was within the exclusive jurisdiction of the Court of International Trade,
The District Court dismissed the Complaint for failure to state a claim, holding that appellant’s claims were not justiciable “since in all respects the determinations required are ‘committed to agency discretion’ and review is forbidden by” the A.P.A.
After the District Court issued its opinion, this Court decided that the President is not an “agency” for purposes of the A.P.A. Armstrong v. Bush,
A. Standing
To establish organizational standing, the labor unions and human rights organizations must “plausibly (1) allege injury in fact derived from the agency’s action or inaction [and remediable by the court’s order to defendant], and (2) assert that the injury is arguably within the zone of interests protected or regulated by the law on which the complaint is founded.” Hotel and Restaurant Employees Union, Local 25 v. Smith,
I agree with Judge Sentelle that the human rights organizations lack standing because they fail to allege adequate injury. An “organization’s abstract concern with a subject that could be affected by an adjudication does not substitute for the concrete injury required by Art. III.” Simon v. Eastern Kentucky Welfare Rights Org.,
Our own cases have taken the distinction between organizational and social interests seriously. In Action Alliance of Senior Citizens v. Heckler,
The groups do allege two specific injuries. First, they allege that the executive’s failure to enforce the worker rights provisions harms their organizational interest in the “protection of exploited workers.” Complaint 11 50. But this must be an abstract social interest rather than a concrete organizational injury, if the distinction is to have any meaning. More promisingly, they allege that the executive’s failure to enforce the worker rights provisions has forced them to waste their organizational resources in the “largely empty ritual” of the petition process. Complaint 1149. But I am not convinced that this amounts to the concrete “drain on the organizations^] resources” that Havens Reality requires.
In both Havens Reality and Spann, the plaintiff organizations had to increase significantly the resources they devoted to combatting defendants’ illegal racial discrimination. In this case, however, the fact that the human rights organizations choose to file “largely empty” petitions with the GSP rather than to promote awareness of human rights in other ways does not seem to have depleted their resources significantly. I recognize that the need to file petitions in the first place could itself be considered a demonstrable injury, since the organizations allege that the petition process is inconsistent with the statute. But because the drain on organizational resources is not obvious, and because the human rights organizations are less directly within the zone of interests that Congress intended to protect than the labor unions are, I am prepared to agree on prudential grounds that the organizations lack standing.
The labor unions are an entirely different matter. It is hard, in fact, to imаgine organizational plaintiffs who are better positioned to meet the constitutional and prudential requirements of Article III. Congress passed the worker rights provisions for the benefit of their members; and they allege that the executive’s refusal to en
The government concedes that the unions have adequately alleged injury. And it seems clear to me that the injury is directly within the zone of interests that the law was passed to protect. In their complaint, the unions point to at least three domestic interests reflected in the legislative history. First, Congress sought to stem the loss of jobs as employers leave the U.S. to hire cheap labor in developing countries. Second, Congress recognized that when foreign countries allow their workers to be explоited, American companies exporting from the countries receive an unfair subsidy which results in the loss of U.S. jobs. Third, Congress concluded that failure to enforce internationally recognized worker rights causes labor standards in this country to decline as employers threaten to relocate to developing countries to win concessions from U.S. employees. Complaint 1137.
The unions’ allegations are supported by the legislative history. Congressman Pease, the sponsor of the worker rights provision, identified two separate injuries:
[1] The lack of basic rights for workers in BDC’s is a very important inducement for capital flight and overseas production by U.S. industries_ [2] The threat, whether explicit or implicit, by American-based multinational corporations to transfer domestic production from the United States to other countries in which there are no labor rights serves as a powerful inducement to force American workers to relinquish legitimate rights won through several decades of personal hardship and struggle....
130 Cong.Rec., E978-79 (March 14, 1984). As a statement by a sponsor of the amendments, “this explanation deserves to be accorded substantial weight.” Federal Energy Admin. v. Algonquin SNG, Inc.,
The unions allege that their members have suffered precisely the injuries that Congress sought to avoid — lost jobs and lower working standards — because of the executive’s failure to enforce the law. They cite figures compiled by the Labor Department which suggest that, between April 1975 and October 1989, 1,223,280 American union members were certified under the Adjustment Assistance Act to receive aid because foreign competition caused them to lose their jobs. They also argue that threats from employers to relocate to countries where worker rights are not respected have forced them to make wage concessions.
It seems clear to me that the injury the unions allege is “fairly traceable” to the conduct they challenge and is likely to be redressed by a decision in their favor. In ruling on a motion to dismiss for lack of standing, the “reviewing courts must accept as true all material allegations of the complaint in favor of the complaining party.” Warth v. Seldin,
By passing the statute, in any event, Congress found not a “tenuous” but a clear connection between the enforcement of
Judge Sentelle’s conclusion reflects the fаct that he focuses exclusively on the first injury Congress identified (loss of jobs) and ignores the second injury (pressure to make labor concessions). I cannot agree that unemployed union members would have to “regain their prior employment” for the union’s injuries to be redressed. Sep.Op. at 751. The redressibility test would be satisfied if working union members felt less pressure to make labor concessions after trade preferences were withdrawn. This, of course, is precisely what Congress expected to happen when it passed the GSP statute in the first place. And our circuit has held repeatedly that Congressional findings about causation and redressibility deserve the greatest deference. See, e.g., Public Citizen v. F.T.C.,
Judge Sentelle suggests that Allen v. Wright and Fulani v. Brady,
Because I think Congress’s intentions about causation and redressibility must be deferred to unless they are plainly irrational, I am convinced that the unions have standing. Different members of this Court, of course, have disagreed vigorously about how much deference is due to Congress in this area. See, e.g. Center for Auto Safety v. Thomas,
Even if I were inclined to give no deference to Congress’s intention, the second prediction seems to me “self-evidently plausible.” See Public Citizen v. F.T.C.,
B. The Political Question Doctrine
Although the District Court did nоt invoke the political question doctrine directly, it seemed inclined to defer to the Executive simply because the case implicates foreign policy. See, e.g.,
But the Supreme Court has made it clear that the political question doctrine does not bar judicial review of a challenge to Executive compliance with a federal statute, even if the challenge involves important questions of foreign affairs. In Japan Whaling Asso. v. American Cetacean Soc.,
In DKT Memorial Fund Ltd. v. Agency for International Development,
C. Agency Discretion
Finally, I would reverse the District Court’s conclusion that judicial review of the worker rights provision is barred “since in all respects the determinations required are ‘committed to agency discretion’ and review is forbidden by” the A.P.A.
The argument is unconvincing. Evеry administrative mechanism includes language that permits an agency to make up its own mind about one question or another. But when a statute requires a specific standard to be applied in making the determination, judicial review is clearly available. See, e.g., Population Institute v. McPherson, 797 F.2d 1062, 1064-65 (D.C.Cir.1986); Amalgamated Transit Union International v. Donovan,
The plain language of the statute also suggests that the statutory criteria are meant to be mandatory rather than discretionary:
[T]he President “shall not designate any country ... (7) if such country has not or is not taking steps to afford internationally recognized worker rights to workers in the country....”
19 U.S.C. § 2462(b) (emphasis added).
[T]he President shall ... withdraw or suspend the designation of any country as a beneficiary developing country if ... he determines that as a result of changed circumstances such country would be barred from designation as a beneficiary developing country under section 2462(b).
Id. § 2464(b) (emphasis added).
And the Supreme Court has indicated that mandatory language is a reliable indication that Congress intended the application of a statute to be subject to judicial review. Overton Park, for example, upheld the right of judicial review where the statute provided that the Secretary of Transportation “shall not approve any program or project” that uses public parkland.
D. The New Information Regulation
The unions asked the District Court to order the government to apply the GSP statute in a manner “consistent with the expressed language and intent of Congress.” I am unpersuaded by some of their more extravagant requests, such as the suggestion that the District Court should tell the Executive precisely what the “taking steps” рrovision means. Even
But I have no doubt that the District Court erred when it refused to review the unions’ most modest and most important charge — that the GSP Committee’s “new information” regulations conflict with the worker rights provision. This is the heart of their complaint, and it is clearly susceptible to judicial review under a straightforward Chevron analysis.
The unions allege that sections 2007.-0(b)(5) and 2007.1(a)(4) .of the United States Trade Representative’s regulations create an improper procedural barrier — one that conflicts with the mandatory language of the worker rights provision — by adding a precondition to GSP enforcement that is not found in the statute. Complaint, H 53g. The regulation requires that a petition include “substantial new information” before a previously reviewed country will be reviewed again, regardless of whether the country is, in fact, violating worker’s rights. The unions argue that the decision to conduct investigations only in response to petitions violates the express terms of the statute, which requires the Trade Representative to ensure that all countries receiving GSP benefits are in compliance with the worker rights provision, whether or not petitions are filed. Complaint, ¶ 53(d).
Heckler v. Chaney does not bar judicial review of the new information regulation. In my view, this is a case of agency action, not agency inaction. “When an agency does act to enforce,” the Heckler court noted, “that action itself provides a focus for judicial review, inasmuch as the agency must have exercised its power in some manner.”
But even if the regulation could be considered a nonenforcement, rather than an enforcement decision, it would represent an exception to Heckler. As the Heckler court noted, even statutes that involve discretion about enforcement actions are reviewable when there is evidence that Congress intended to limit the discretion “either by setting substantive priorities, or by otherwise circumscribing an agency’s power to discriminate among issues or cases it will pursue.”
III. CONCLUSION
I cannot accept Judge Henderson’s conclusion that the Court of International Trade has exclusive jurisdiction or Judge Sentelle’s conclusion that the unions lack standing. And I am convinced that the case is not barred by the political question doctrine, by Overton Park, or by Heckler v. Chaney, as the District Court suggested. I would remand to the District Court with instructions to determine whether the “new information” regulation was reasonable, or arbitrary and capricious, in light of the language of the statute.