03:23 PM

AAP Disappointed by Commerce Department Decision on Canadian Uncoated Groundwood Paper

AAP is disappointed by yesterday’s Commerce Department affirmative preliminary anti-dumping decision, which will continue the ITC proceedings.

Last September, the independent U.S. International Trade Commission (ITC) and the Commerce Department’s International Trade Administration (ITA) initiated “anti-dumping” and “countervailing duties” investigations based on petitions from a single U.S. paper producer -- North Pacific Paper Company (NORPAC) -- to determine whether any U.S. injury has been materially injured by imports of Canadian UGW paper that were allegedly sold in the U.S. at less than fair value due to subsidization of the production of such paper by the Canadian Government. In January, months after the ITC issued a preliminary finding of such material injury, the ITA announced its preliminary findings of illegal subsidization by the Canadian Government. Yet, other than NORPAC, the U.S. companies that compete with the Canadian producers and exporters of UGW paper believe that diminishing purchases of their products are due to the continuing transition of media to digital formats since 2000 rather than to any Canadian trade violations.

“We believe that, if the U.S. imposes tariffs that raise the price of Canadian UGW paper imports, U.S. producers of the like domestic paper product can be expected to raise their own prices as well. Other than a single U.S. paper producer, the U.S. newspaper and book publishers, and the U.S. printers who manufacture their paper-based products, all stand united to oppose the imposition of such U.S. tariffs on the Canadian imports,” said Allan Adler, General Counsel and Executive Vice President of the Association of American Publishers.

A final determination by the Commerce Department on the ‘dumping’ issue is expected in August. If it is also affirmative, then the ITC will issue a final determination in September on whether any U.S. industry is materially injured by reason of the Canadian UGW paper import, but only if the Department’s final determination on illegal subsidization by the Canadian Government is affirmative. AAP will continue to work with the STOPP Coalition on behalf of its members, who are customers of UGW paper producers for mass market paperbacks and other products.