1. Section 232 – Origins and Use
XIV SYMPOSIUM ON INTERNATIONAL TRADE
Terence P. Stewart
Managing Partner
Law Offices of Stewart & Stewart
2100 M Street, N.W.
Washington, D.C

2. Text: Section 232
Upon request or its own motion, the Secretary of Commerce shall initiate and conduct an investigation to determine the effects on the national security of imports of the article which is the subject of such request or motion.
19 U.S.C. § 1862(b)(1)(A).
If the report by the Secretary finds that imports of the article threaten national security, the President shall determine what action, if any, to take to adjust the imports of the article threatening to impair national security.
19 U.S.C. § 1862(c).

3. Section 232 Process
Source: Rachel F. Fefer et al., Cong. Research Serv., R45249, Section 232 Investigations: Overview and Issues for Congress (2018).

4. National Security Considerations
Close relation of the economic welfare to national security;
Impact of foreign competition on the economic welfare of individual domestic industries;
Substantial unemployment;
Decrease in revenues of government;
Loss of skills or investment;
Other serious effects resulting from the displacement of any domestic products by excessive imports.
19 U.S.C. § 1862(d).

5. The Legislative Origins of Section 232
Trade Expansion Act of 1962
Trade Agreements Extension Acts of 1954, 1955, and 1958
Comprise the building blocks of the current statute
Legislative history shows
Broad grant of authority to the President
Broad understanding of national security

6. The Legislative Origins of Section 232
Trade Agreements Extension Act of 1954
Prohibited President from reducing duties where import threatened “domestic production needed for national defense”

7. The Legislative Origins of Section 232
Trade Agreements Extension Act of 1955
(1) “Office of Defense Mobilization” to advise President of national security threats arising from imports; and
(2) President to order investigation and import adjustments

8. The Legislative Origins of Section 232
Trade Agreements Extension Act of 1955
Despite problems for specific industries, language was kept broad

9. Legislative History: Section 232
The Trade Agreements Extension Act of 1958:
Authority extended again with stated intent to provide:
(1) “Unquestioned authority” to the President; and
(2) A “fast-moving vehicle for guarding national security”
Broad concept of national security

10. Use of Section 232 Total of 30 Section 232 investigations since 1963
27 completed
11 positive
16 negative
1 terminated
2 in process (autos; uranium)
Only 9 investigations since 1988
Only 8 investigations have resulted in presidential action of some kind
Only 2 investigations have resulted in additional tariffs (steel; aluminum)
Source: Rachel F. Fefer et al., Cong. Research Serv., R45249, Section 232 Investigations: Overview and Issues for Congress (2018).

11. Use of Section 232
Source: Rachel F. Fefer et al., Cong. Research Serv., R45249, Section 232 Investigations: Overview and Issues for Congress 5 (2018).

12. Use of Section 232
Prior uses of Section 232 have resulted in modest changes
Antifriction Bearings (1987)
Commerce found potential threat but deferred determination to see outcome of Federal Acquisition Regulation requiring domestic procurement of all defense-related bearings.
Machine Part Tools (1986)
Despite Commerce’s recommendation to ban 90% of imports, VRAs were sought with West Germany, Switzerland, Taiwan, and Japan.

13. Conclusion
Administration’s current use of Section 232 in line with text and history of the statute;
But much more aggressive in reach than historical application.