Injunction blocking China safeguards stands, for now
The U.S. Court of Appeals for the Federal Circuit has deferred consideration of a preliminary injunction issued Dec. 30 by the U.S. Court of International Trade that has blocked attempts by the Bush administration to issue threat-based safeguards limiting textile and apparel imports from China to the United States.
The Court of Appeals, based in Washington, D.C., delayed consideration of a motion by the U.S. government to stay the injunction until after a 'merits panel' of judges is formed April 28 to review an underlying appeal to overturn the injunction itself.
'We deem it the better course to defer the motion to the merits panel,' the court said in its decision. Oral arguments before that appellate panel have been scheduled for May 5.
The court's ruling effectively delays any final judgment on the government's motion for at least six weeks, and possibly longer. The merits panel of judges is under no deadline to issue a ruling on the motion to stay once the panel is assigned to the case.
'This decision (by the Court of Appeals) severely imperils the chances for the threat cases to proceed in time for the U.S. textile industry to achieve meaningful relief from surging Chinese imports. It is a classic case of justice delayed being justice denied,' said Cass Johnson, president of the National Council of Textile Organizations.
'Now, with no prospect of imminent relief coming from the courts, it is more imperative than ever that the U.S. government self-initiate safeguard cases in all sensitive (apparel and textile) categories immediately,' said Karl Spilhaus, president of the National Textile Association.
The case in which the preliminary injunction was issued, 'U.S. Association of Importers of Textiles and Apparel (USA-ITA) v. the United States, etc.,' will continue in the Court of International Trade in New York while the merits panel considers the validity of the trade court's preliminary injunction. Judge Richard Goldberg, who issued that injunction, has ordered USA-ITA and the government to hold a scheduling conference by April 29. If there is to be discovery in this case, Goldberg wants a discovery plan filed with the trade court by May 6.