Almond Bros. Lumber v. United States , 721 F.3d 1320 ( 2013 )


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  •  United States Court of Appeals
    for the Federal Circuit
    ______________________
    ALMOND BROS. LUMBER CO., BIGHORN
    LUMBER COMPANY, BLUE MOUNTAIN LUMBER
    PRODUCTS, LLC, CF INDUSTRIES, INC.
    (FORMERLY KNOWN AS CLEARWATER FOREST
    INDUSTRIES), COLLINS PINE COMPANY, CODY
    LUMBER, INC., D.R. JOHNSON LUMBER CO.,
    EMPIRE LUMBER CO., F.H. STOLTZE LAND &
    LUMBER COMPANY, GRAYSON LUMBER CORP.,
    HAMPTON RESOURCES, INC., HARWOOD
    PRODUCTS INC., HEDSTROM LUMBER
    COMPANY, INC., IDAHO VENEER COMPANY,
    INTERMOUNTAIN RESOURCES, LLC, MOUNTAIN
    VALLEY LUMBER CO., INC., NEIMAN SAWMILLS,
    INC., NORTHERN LIGHTS TIMBER & LUMBER,
    INC., OCHOCO LUMBER COMPANY, PINECREST
    LUMBER CO. (DIVISION OF GREEN BAY
    PACKAGING, INC.), PRECISION PINE & TIMBER,
    INC., ROSBORO, LLC, RSG FOREST PRODUCTS,
    INC., RUSHMORE FOREST PRODUCTS, INC.,
    SANDERS WOOD PRODUCTS, INC., SPANISH
    TRAIL LUMBER CO., LLC, SUNDANCE LUMBER
    COMPANY, INC., THRIFT BROTHERS LUMBER
    CO., INC., TRINITY RIVER LUMBER COMPANY,
    TRIPLE T STUDS CO., VIKING LUMBER
    COMPANY, INC., WARM SPRINGS FOREST
    PRODUCTS INDUSTRIES, WESTERN CASCADE
    INDUSTRIES LLC, WRENN BROTHERS, INC.,
    WYOMING SAWMILLS, INC., AND ZIP-O-LOG
    MILLS, INC.,
    Plaintiffs-Appellants,
    2                          ALMOND BROS. LUMBER CO.   v. US
    AND
    HERBERT LUMBER CO.,
    Plaintiff,
    v.
    UNITED STATES AND RON KIRK, UNITED STATES
    TRADE REPRESENTATIVE,
    Defendants-Appellees.
    ______________________
    2012-1393
    ______________________
    Appeal from the United States Court of International
    Trade in No. 08-CV-0036, Judge Richard K. Eaton.
    ______________________
    Decided: July 1, 2013
    ______________________
    ALAN I. SALTMAN, Smith, Currie & Hancock, LLP, of
    Washington, DC, argued for plaintiffs-appellants. With
    him on the brief was ALAN F. HOLMER.
    DAVID S. SILVERBRAND, Trial Attorney, Commercial
    Litigation Branch, Civil Division, United States Depart-
    ment of Justice, of Washington, DC, argued for defend-
    ants-appellees. With him on the brief were STUART F.
    DELERY, Acting Assistant Attorney General, JEANNE E.
    DAVIDSON, Director, and FRANKLIN E. WHITE, JR., Assis-
    tant Director.
    ______________________
    Before MOORE, LINN, and REYNA, Circuit Judges.
    REYNA, Circuit Judge.
    ALMOND BROS. LUMBER CO.   v. US                       3
    Plaintiffs (collectively, “Almond”) are domestic pro-
    ducers of softwood lumber products. Almond initiated
    this action in the Court of International Trade (“Trade
    Court”), alleging that United States Trade Representative
    (“USTR”) exceeded its authority by agreeing to certain
    terms in the Softwood Lumber Agreement it entered into
    with Canada in 2006. The Trade Court dismissed counts
    2, 3, and 4 of the complaint for failure to state a claim
    and, alternatively, dismissed count 2 as a non-justiciable
    political question. 1 Almond Bros. Lumber Co. v. United
    States, No. 08-00036, 
    2012 WL 1372173
     (Ct. Int’l Trade
    April 19, 2012) (“Dismissal Order”). Because Almond
    failed to allege facts to make plausible any of its claims
    for relief, we affirm.
    BACKGROUND
    I
    For over two decades, members of the United States
    softwood lumber industry have accused Canada of unfair-
    ly subsidizing 2 the production of softwood lumber. These
    accusations have spawned an enormous amount of litiga-
    tion. See Almond Bros. Lumber Co. v. United States, 
    651 F.3d 1343
     (Fed. Cir. 2011) (“Almond III”). 3 Over the
    years, the United States and Canada have entered into a
    1    Count 1 was dismissed separately and is not at is-
    sue in this appeal.
    2    We note that not all subsidies are countervailable
    under U.S. trade laws. The subsidies referenced in this
    opinion are those that are alleged or deemed to be coun-
    tervailable.
    3    Almond III explains the history of this litigation
    in great detail. We include here only what is necessary to
    explain our decision.
    4                            ALMOND BROS. LUMBER CO.   v. US
    number of agreements intended to resolve this dispute.
    See 
    id. at 1345-48, 1351
    .
    The history of this case begins in 1986, when the Coa-
    lition for Fair Lumber Imports (“Coalition”), “an associa-
    tion made up of many, but not all, domestic softwood
    lumber producers, filed petitions with the Department of
    Commerce (‘Commerce’) and the International Trade
    Commission (‘ITC’) alleging that” Canada was subsidizing
    its softwood lumber exports. 
    Id. at 1344-45
    . Commerce
    investigated and issued a “preliminary finding that Can-
    ada was subsidizing its softwood lumber exports.” 
    Id. at 1345
    . This dispute was resolved by a memorandum of
    understanding (the “1986 MOU”) between the United
    States and Canada that became the first of several such
    agreements.
    In September 1991, Canada terminated the 1986
    MOU. 
    Id.
     Shortly thereafter, Commerce initiated a
    countervailing duty investigation, again determining that
    Canada was subsidizing softwood lumber exports. 
    Id.
    This initiated a new round of litigation, which the United
    States and Canada eventually settled by entering into a
    new settlement agreement (“the 1996 SLA”). 
    Id.
     at 1345-
    46. In return for Canada’s agreement to impose certain
    export taxes on certain softwood lumber exports to the
    United States, the United States agreed not to self-
    initiate any countervailing duty investigations and to
    dismiss any countervailing duty petitions that were filed
    on softwood lumber from Canada. 
    Id. at 1346
    .
    The 1996 SLA expired on March 31, 2001, and in
    April 2001, the Coalition filed new petitions with Com-
    merce and the ITC seeking the imposition of both anti-
    dumping and countervailing duty orders. 
    Id.
     This
    eventually resulted in the entry of an antidumping duty
    order and a countervailing duty order. 
    Id. at 1346-47
    . A
    new round of litigations between the United States and
    Canada ensued, with Canada appealing these orders to
    ALMOND BROS. LUMBER CO.   v. US                        5
    various fora. 
    Id. at 1347
    . This exhaustive litigation
    concluded with the United States and Canada entering
    into a third agreement: the 2006 Softwood Lumber
    Agreement (“2006 SLA”).
    Under the 2006 SLA, Commerce agreed to revoke the
    outstanding antidumping and countervailing duty orders
    and to refund duties collected on Canadian softwood
    lumber after May 22, 2002. 
    Id.
     At the time of the agree-
    ment, these duties amounted to approximately $5 billion.
    In return, Canada agreed that for a period of seven years
    after the 2006 SLA’s effective date, it would impose export
    taxes on certain softwood lumber exported to the United
    States. 
    Id.
     Paragraphs 4 and 5 of Annex 2C to the 2006
    SLA required Canada to distribute $1 billion to various
    groups in the United States:
    4. By the Effective Date, the United States shall
    provide Canada or its agent with information
    identifying separate accounts whose beneficiaries
    are respectively:
    (a) the members of the Coalition for Fair
    Lumber Imports;
    (b) a binational industry council described
    in Annex 13; and
    (c) meritorious initiatives in the United
    States identified by the United States in
    consultation with Canada as described in
    Article XIII(A).
    5. Canada or its agent shall distribute $US 1 bil-
    lion pursuant to the Irrevocable Directions to Pay
    to the accounts referred to in paragraph 4 in the
    following amounts: $US 500 million to the mem-
    bers of the Coalition for Fair Lumber Imports,
    $US 50 million to the binational industry council,
    and $US 450 million for meritorious initiatives.
    6                            ALMOND BROS. LUMBER CO.   v. US
    Appellant’s Br. Addendum 61 (“Distribution Term”).
    Notably, half of the $1 billion was to be distributed by
    Canada to a fund benefitting members of the Coalition.
    Although the 2006 SLA does not state its purpose, the
    USTR, Canada’s Minister of International Trade, and
    Canada’s Industry Minister announced in an April 27,
    2006, press release that the 2006 SLA was aimed at
    “resolving the softwood lumber dispute, including revoca-
    tion of orders, refund of deposits, imposition of an export
    measure in Canada and addressing long term policy
    reform.” Almond III, 
    651 F.3d at 1347
     (internal quotation
    marks omitted).
    II
    Plaintiffs are domestic softwood lumber producers
    who are not members of the Coalition and who therefore
    do not stand to receive any of the $500 million set aside
    by the Distribution Term to benefit Coalition members.
    Plaintiffs brought suit in the Trade Court against the
    United States and the USTR, asserting three theories
    under which they believed the Distribution Term negoti-
    ated by the USTR was contrary to law. Count 2 alleges
    that by agreeing to a Distribution Term which did not
    include all members of the domestic softwood lumber
    industry, the USTR acted outside of its statutory authori-
    ty. Count 3 alleges that the Distribution Term violates
    equal protection. Count 4 alleges that the USTR wrong-
    fully delegated the function of determining how much
    each affected domestic producer should receive to the
    Coalition, a non-governmental entity.
    The Trade Court initially dismissed the complaint for
    lack of jurisdiction, Almond Bros. Lumber Co. v. United
    States, No. 08-00036, 
    2009 WL 1397182
     (Ct. Int’l Trade
    May 20, 2009), and denied reconsideration, Almond Bros.
    Lumber Co. v. United States, No. 08-000362010, 
    2010 WL 1409656
     (Ct. Int’l Trade April 8, 2010). This court re-
    ALMOND BROS. LUMBER CO.   v. US                         7
    versed, holding that the Trade Court had jurisdiction
    under 
    28 U.S.C. § 1581
    (i). Almond III, 
    651 F.3d at 1351
    .
    On remand, the Trade Court dismissed all counts.
    The court concluded that count 2 failed to state a claim
    because 
    19 U.S.C. § 2411
    (c)(4) did not prohibit the USTR
    from negotiating the Distribution Term. Dismissal Order,
    
    2012 WL 1372173
    , at *12. It concluded that count 3 failed
    to state a claim because the Distribution Term “was
    rationally related to the legitimate government purpose of
    ending the undesirable trade practices of the Canadian
    softwood lumber industry.” Id. at *14. Finally, it con-
    cluded that count 4 failed to state a claim because Almond
    had “failed to identify a governmental function that was
    impermissibly delegated,” id. at *16, and because Almond
    lacked standing to object to the Coalition’s allocation of
    funds among its members. Id. at *17.
    Plaintiffs timely appealed. This court has jurisdiction
    under 
    28 U.S.C. § 1295
    (a)(5).
    DISCUSSION
    We review the Trade Court’s dismissal of a claim for
    failure to state a claim de novo. See Sioux Honey Ass’n v.
    Hartford Fire Ins. Co., 
    672 F.3d 1041
    , 1049 (Fed. Cir.
    2012). To survive a motion to dismiss for failure to state a
    claim, “[f]actual allegations must be enough to raise a
    right to relief above the speculative level, on the assump-
    tion that all the allegations in the complaint are true
    (even if doubtful in fact).” Bell Atl. Corp. v. Twombly, 
    550 U.S. 544
    , 555-56 (2007) (footnote omitted) (citations
    omitted). To the extent that the Trade Court based its
    dismissal on standing, our review of that issue is also de
    novo. Canadian Lumber Trade Alliance v. United States,
    
    517 F.3d 1319
    , 1330 (Fed. Cir. 2008).
    I
    Count 2 of Almond’s complaint arises under the Ad-
    ministrative Procedure Act (“APA”), 
    5 U.S.C. §§ 701-706
    ,
    8                                 ALMOND BROS. LUMBER CO.   v. US
    alleging that the USTR exceeded its authority by negoti-
    ating the 2006 SLA’s Distribution Term. See 
    5 U.S.C. § 706
    (2). The USTR’s authority to enter into the 2006
    SLA derives from 
    19 U.S.C. § 2411
    . See Almond III, 
    651 F.3d at 1355
    . Section 2411(c)(1)(D) provides:
    For purposes of carrying out the provisions of sub-
    section (a) or (b) of this section, the Trade Repre-
    sentative is authorized to . . . enter into binding
    agreements with such foreign country that com-
    mit such foreign country to –
    (i) eliminate, or phase out, the act, policy, or prac-
    tice that is the subject of the action to be taken
    under subsection (a) or (b) of this section,
    (ii) eliminate any burden or restriction on United
    States commerce resulting from such act, policy,
    or practice, or
    (iii) provide the United States with compensatory
    trade benefits that –
    (I) are satisfactory to the Trade Repre-
    sentative, and
    (II)   meet         the     requirements    of
    [§ 2411(c)(4)].
    (Emphasis added).         Section 2411(c)(4) further requires
    that:
    Any trade agreement described in paragraph
    (1)(D)(iii) shall provide compensatory trade bene-
    fits that benefit the economic sector which in-
    cludes the domestic industry that would benefit
    from the elimination of the act, policy, or practice
    that is the subject of the action to be taken under
    subsection (a) or (b) of this section, or benefit the
    economic sector as closely related as possible to
    such economic sector, unless –
    ALMOND BROS. LUMBER CO.   v. US                           9
    (A) the provision of such trade benefits is not fea-
    sible, or
    (B) trade benefits that benefit any other economic
    sector would be more satisfactory than such trade
    benefits.
    Almond argues, as it did below, that § 2411(c)(1)(D)
    required the USTR to ensure that the $500 million be
    distributed to all members of the softwood lumber indus-
    try and to require that the funds be distributed on the
    basis of the harm suffered. The government responds
    that the Trade Court correctly determined that the provi-
    sions of the Distribution Term were committed to agency
    discretion by law, and therefore immune from judicial
    review under 
    5 U.S.C. § 701
    (a)(2).
    We agree with the government. Before review may be
    had under the APA, “a party must first clear the hurdle of
    § 701(a).” Heckler v. Chaney, 
    470 U.S. 821
    , 828 (1985).
    Section 701(a)(2) precludes review of “agency action[s that
    are] committed to agency discretion by law.” This is a
    narrow exception to the APA’s presumption of reviewabil-
    ity, and applies “in those rare instances where ‘statutes
    are drawn in such broad terms that in a given case there
    is no law to apply.’” Citizens to Preserve Overton Park,
    Inc. v. Volpe, 
    401 U.S. 402
    , 410 (1971) (quoting S. Rep.
    No. 79-752, at 26 (1945)); see also Heckler, 
    470 U.S. at 830
    (“[R]eview is not to be had if the statute is drawn so that a
    court would have no meaningful standard against which
    to judge the agency’s exercise of discretion.”). A decision
    is more likely to be committed to an agency’s discretion
    when it requires “a complicated balancing of a number of
    factors which are peculiarly within its expertise”; for
    example, questions of whether agency action is likely to
    be successful or whether a particular action best fits the
    agency’s overall policies. Heckler, 
    470 U.S. at 831
    ; see
    also Lincoln v. Vigil, 
    508 U.S. 182
    , 193 (1993).
    10                           ALMOND BROS. LUMBER CO.   v. US
    Section 2411(c) limits the USTR’s authority to negoti-
    ate for compensatory trade benefits in two ways. First,
    the compensatory trade benefits must be “satisfactory to
    the [USTR].” § 2411(c)(1)(D)(iii)(I). Second, the compen-
    satory trade benefits must comply with § 2411(c)(4),
    which requires that, subject to certain exceptions, the
    compensatory trade benefits must benefit the economic
    sector that includes the domestic industry harmed by the
    unfair trade practice the USTR is seeking to curb, or “the
    economic sector as closely related as possible to such
    economic sector.”
    Almond’s attacks go to the substance of the Distribu-
    tion Term. In particular, Almond objects to (1) the
    USTR’s choice to distribute funds only to those members
    of the domestic softwood lumber industry that are mem-
    bers of the Coalition, and (2) the USTR’s failure to require
    that compensation be allocated in proportion to the harm
    suffered.     Neither of these arguments relates to
    § 2411(c)(4)’s requirement that the compensatory trade
    benefits be directed at a particular economic sector.
    Accordingly, Almond’s arguments can succeed only if the
    Distribution Term is contrary to § 2411(c)(1)(D)(iii)(I)’s
    requirement that the compensatory trade benefits must
    be “satisfactory” to the USTR.
    Under § 2411(c)(1)(D)(iii)(I)’s standard, the USTR has
    discretion to craft whatever relief it deems necessary to
    resolve the dispute. The negotiation and determination of
    the terms of international agreements is a paradigmatic
    example of “a complicated balancing of a number of fac-
    tors which are peculiarly within [the USTR’s] expertise.”
    Heckler, 
    470 U.S. at 831
    . The statute reflects this: the
    provision of compensatory trade benefits is not mandato-
    ry, any benefits provided need only be “satisfactory” to the
    USTR, and when benefits are provided, they need not
    even benefit the economic sector related to the harmful
    trade practice. See § 2411(c). At least with respect to the
    dispute in this case, the USTR’s discretion under
    ALMOND BROS. LUMBER CO.   v. US                        11
    § 2411(c) is “drawn in such broad terms that . . . there is
    no law to apply.” Overton Park, 
    401 U.S. at 410
     (internal
    quotation marks omitted).
    Perhaps recognizing that the USTR’s decision under
    § 2411(c)(1)(D)(iii)(I) is immune to judicial review, Almond
    attempts to ground its arguments elsewhere in the stat-
    ute. First, Almond argues that the compensatory trade
    benefits do not benefit the economic sector as required
    under § 2411(c)(4) unless they benefit every member of
    the affected domestic industry. The language of para-
    graph four contains no such restriction, requiring only
    that the compensatory trade benefits “benefit the econom-
    ic sector which includes the domestic industry.”
    § 2411(c)(4) (emphasis added).         Nevertheless, citing
    Samish Indian Nation v. United States, 
    419 F.3d 1355
    ,
    1367 (Fed. Cir. 2005), Almond asserts that paragraph four
    is a remedial statute and should be interpreted broadly.
    But it is unclear, and Almond does not explain, whether §
    2411(c) is in fact remedial and, if so, how this requires us
    to construe “benefit the economic sector which includes
    the domestic industry” to mean “benefits every member of
    the domestic industry.”
    Almond also attempts to ground its argument in the
    term “compensatory,” arguing that this term requires that
    compensation be distributed in proportion to the harm
    experienced by each individual member of the domestic
    industry. Almond is correct that the plain meaning of this
    term “connotes offsetting an error or undesired effect.”
    But the plain meaning of “compensatory” does not require
    that damages be allocated in any particular way. Indeed,
    as discussed above, such a restriction would be contrary to
    the remainder of the statute, which allows the USTR
    considerable latitude to distribute benefits not only to
    members of the domestic industry, but also to other
    economic sectors if, in the USTR’s judgment, this would
    be more satisfactory. Reading additional restrictions into
    the term “compensatory” would not comport with the
    12                           ALMOND BROS. LUMBER CO.   v. US
    statutory scheme. See Food & Drug Admin. v. Brown &
    Williamson Tobacco Corp., 
    529 U.S. 120
    , 133 (2000) (“It is
    a fundamental canon of statutory construction that the
    words of a statute must be read in their context and with
    a view to their place in the overall statutory scheme. A
    court must therefore interpret the statute as a symmet-
    rical and coherent regulatory scheme, and fit, if possible,
    all parts into an harmonious whole.”) (citations omitted)
    (internal quotation marks omitted).
    We reject Almond’s arguments that § 2411(c) required
    the USTR to compensate every member of the domestic
    softwood lumber industry and that the compensation was
    required to be proportional to the harm suffered. Al-
    mond’s arguments attack the substance of the Distribu-
    tion Term, which defines the compensatory trade benefits
    that the USTR secured from Canada in the 2006 SLA.
    Whether those benefits were satisfactory is a question
    that is committed to the discretion of the USTR and
    therefore beyond judicial review.
    II
    Count 3 of the complaint alleges that the Distribution
    Term violates equal protection. The Trade Court found
    that the term was “rationally related to the legitimate
    government purpose of ending the undesirable trade
    practices of the Canadian softwood lumber industry, and
    to settle the ongoing litigation concerning the U.S.-
    Canadian softwood lumber trade.” Dismissal Order, 
    2012 WL 1372173
    , at *14. It based this conclusion on its
    findings (1) that the Coalition was the primary repre-
    sentative of the industry in the various proceedings that
    were ongoing when the 2006 SLA was negotiated, and (2)
    that in exchange for the Distribution Term, counsel for
    the Coalition agreed to dismiss more than 20 lawsuits
    that were pending when the 2006 SLA was signed. 
    Id.
    Almond argues that these two findings are clear error and
    that the dismissal of count 3 should therefore be reversed.
    ALMOND BROS. LUMBER CO.   v. US                          13
    It is undisputed that rational basis scrutiny applies to
    the equal protection claim alleged by Almond in count 3.
    Under rational basis, “a classification must be upheld
    against equal protection challenge if there is any reason-
    ably conceivable state of facts that could provide a ration-
    al basis for the classification.” Heller v. Doe, 
    509 U.S. 312
    ,
    320 (1993) (internal quotation marks omitted). “A statu-
    tory classification fails rational-basis review only when it
    rests on grounds wholly irrelevant to the achievement of
    the State’s objective.” 
    Id. at 324
     (internal quotation
    marks omitted). The burden is on Almond to negate every
    conceivable basis that might support the Distribution
    Term, regardless of whether the basis has a foundation in
    the record. See 
    id. at 320-21
    .
    “Softwood lumber has been a perennial sore-spot in
    trade relations between the United States and Canada,”
    Tembec, Inc. v. United States, 
    441 F. Supp. 2d 1302
    , 1306
    (Ct. Int’l Trade 2006), and the Coalition has been heavily
    involved in this issue since at least 1982. See id. n.4.
    Indeed, it was the Coalition’s 1986 unfair trade petitions
    to Commerce and the ITC that began the series of events
    leading to the 2006 SLA. The Trade Court determined
    that “[t]he Coalition was the primary representative of
    the domestic industry in the various proceedings that
    were ongoing when the SLA was negotiated” and that
    “[t]he Coalition bore the time and expense of extensive
    legal battles to address the practices of the Canadian
    industry.” Dismissal Order, 
    2012 WL 1372173
    , at *14-15.
    It concluded that this provided “a sufficient rationale for
    compensating its members to the exclusion of more pas-
    sive members of the domestic lumber industry, such as
    plaintiffs.” Id. at *15.
    Almond’s challenges to the Trade Court’s observations
    are unpersuasive. To the contrary: Almond concedes that
    the Coalition filed the initial petitions in 1986, and that it
    did so again in 2001, obtaining “letters from companies
    representing at least 60% of the United States production
    14                            ALMOND BROS. LUMBER CO.   v. US
    of softwood lumber” supporting its petition. Appellant’s
    Br. 8.
    Instead, Almond contends that since the “Termination
    of Litigation” provision in Annex 2A was not included in
    the final agreement, the Trade Court’s ruling cannot
    stand. But regardless of whether the Coalition agreed to
    dismiss any suits, the fact remains that over a long period
    the Coalition organized the necessary industry support,
    including financial support and the submission of ques-
    tionnaire responses, legal briefs, and industry trade data,
    for the petitions that caused the government to initiate
    investigations. To state a plausible equal protection
    claim, Almond needed to negate every conceivable basis
    that could support the Distribution Term. By resting its
    argument on the distinction between the Coalition being
    party to the suit and the Coalition acting as the driving
    force behind this litigation, it has failed to do so.
    III
    Count 4 of the complaint alleges that the USTR
    wrongfully delegated the function of determining how
    much each affected domestic producer should receive to a
    non-governmental entity, the Coalition. Almond cites to a
    small number of non-binding cases dealing with different
    statutes and different agencies as support for its argu-
    ment that agency officials generally may not delegate
    their authority to private entities. See, e.g., U.S. Telecom
    Ass’n v. FCC, 
    359 F.3d 554
    , 565 (D.C. Cir. 2004) (“[C]ase
    law strongly suggests that subdelegations to outside
    parties are assumed to be improper absent an affirmative
    showing of congressional authorization.”); see also Nat’l
    Ass’n of Regulatory Utility Comm’rs v. FCC, 
    737 F.2d 1095
    , 1143 n.41 (D.C. Cir. 1984). We will assume, as did
    the Trade Court, that this statement of the law is correct. 4
    4 The Trade Court cited “
    5 U.S.C. § 706
    (a)(2)” for
    the proposition that “[a]n agency’s impermissible delega-
    ALMOND BROS. LUMBER CO.   v. US                        15
    The Trade Court concluded that the USTR had not
    delegated the decision to compensate only Coalition
    members, noting that “the determination that some
    domestic softwood lumber producers (i.e., Coalition mem-
    bers) were to receive payments from Canada to the exclu-
    sion of others was not delegated because the Distribution
    Term was negotiated and agreed to by the USTR.” Dis-
    missal Order, 
    2012 WL 1372173
    , at *17. We agree and
    conclude that to the extent that count 4 alleges that the
    USTR delegated this decision, it has failed to state a
    claim.
    In addition, the Trade Court observed that count 4
    could also be read as an objection to the delegation of the
    allocation of payments made among members of the
    Coalition. 
    Id.
     The court concluded that under this read-
    ing, Almond lacked standing: since the USTR had lawful-
    ly excluded Almond from the Distribution Term, Almond
    could not be injured by the Coalition’s decision of how to
    distribute the funds. We agree.
    CONCLUSION
    For the foregoing reasons, the decision of the Trade
    Court dismissing counts 2, 3, and 4 for failure to state a
    claim is affirmed. Because our decision affirms the dis-
    missal of Almond’s entire complaint, we need not reach
    tion is unlawful and will be set aside under the APA.”
    Dismissal Order, 
    2012 WL 1372173
    , at *16 n.14. Assum-
    ing that the court meant to cite § 706(2)(A), we under-
    stand its use of the term “unlawful” to mean that the
    court believed such a subdelegation to be “not in accord-
    ance with law.” Section 706 is silent on the issue of
    subdelegation, and we are aware of no case to have stated
    that it precludes subdelegation. We note, however, that if
    the USTR is allowed to subdelegate its power, count 4
    must be dismissed. Accordingly, we assume for our
    analysis that subdelegation is not allowed.
    16                         ALMOND BROS. LUMBER CO.   v. US
    the issue of whether count 2 presented a non-justiciable
    political question.
    AFFIRMED