Gerald Metals, Inc. v. United States

United States antidumping statutes empowered the United States Trade Commission (ITC) (defendant) to decide whether imported goods sold at less than fair value (LTFV), i.e., dumped goods, had materially injured domestic producers. The statutes required the ITC to show that the LTFV goods caused the harm. In 1992, imports from the former Soviet Union increased the magnesium supply. Domestic producers could not raise their prices. In an antidumping proceeding, the ITC found that some magnesium imported from Russia, China, and the Ukraine was sold at LTFV and some at fair value. Magnesium buyers testified that they did not distinguish between fair-value magnesium and LTFV magnesium from any source. Early on in the period at issue, the market share of LTFV magnesium exceeded that of fair-value magnesium. At the end of the period, fair-value magnesium had the greater share. Gerald Metals, Inc. (Gerald) (plaintiff), a trading firm that sold LTFV magnesium and fair-value magnesium, argued that the LTFV magnesium had not harmed domestic producers. Gerald argued that if the LTFV magnesium had been excluded, domestic prices would nonetheless have been undercut by fair-value magnesium. The ITC rejected this argument, asserting that magnesium buyers’ decisions were based on factors other than price. A plurality of the ITC judges concluded that the LTFV magnesium had caused material injury to domestic producers by holding prices low. Gerald appealed.