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NAFTA BINATIONAL PANEL SYSTEM: SECOND CONSTITUTIONAL SUIT DISMISSED (CRS Report for Congress)

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Release Date Feb. 10, 1998
Report Number 98-102
Report Type Report
Authors Jeanne J. Grimmett, American Law Division
Source Agency Congressional Research Service
Summary:

Chapter 19 of the NAFTA allows parties to antidumping and countervailing duty proceedings to seek binational panel review of final agency determinations in lieu of judicial review in the country in which the determination was made. Some have argued that the process violates the Appointments Clause of the U.S. Constitution and possesses other constitutional defects. Federal law allows suits challenging the constitutionality of Chapter 19 panels, but these may only be brought by parties to a panel proceeding. The U.S. Court of Appeals for the District of Columbia Circuit recently dismissed a Chapter 19 constitutional challenge, holding that the plaintiff had failed to meet Article III standing requirements (American Coalition for Competitive Trade v. Clinton, 129 F.3d 761 (decided Nov. 14, 1997)). Separately, the plaintiff had conceded its failure to meet the statutory exhaustion requirement for filing such a suit, a requirement the court found to be constitutional as well as typical of agency adjudication schemes.