US Hits Canadian Groundwood Paper Imports With Tariffs

Rise against proposed newsprint taxes

NewsAlert: Canada launches global trade complaint vs US over use of duties

Kruger, the parent company of Corner Brook Pulp and Paper, is one of the three companies targeted by the US, but duties would apply to all Canadian producers.

A U.S. Commerce Department decision to impose tariffs on Canadian paper imports is stoking concerns at American newspapers about financial strains facing the news industry.

Commerce is expected to make final antidumping and countervailing duty determinations in July, and the International Trade Commission will make its final injury determination in August 2018, he said.

The decision dealt a blow to domestic newspaper industry giants who'd argued that countervailing duties against the paper importers could decimate their already hobbled industry.

Lawmakers, including some Republicans, opposed the move, citing concerns about USA printing and publishing jobs.

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The company, which is based in Longview, Wash., complained to the Commerce Department in August that USA paper makers are being hurt by Canadian groundwood.

It is the same argument made regarding Canada's softwood industry, which led to the imposition of both countervailing and anti-dumping duties on most Canadian softwood exports to the United States. At going market rates that newsprint is worth about $84 million.

"NORPAC has a world-class facility that can compete with anyone around the world, but we need to be able to compete on a level playing field".

Anneberg said that's a "small price to pay to preserve American manufacturing jobs" in Washington, Mississippi and Georgia.

"While we understand the concerns recently surfaced by some newspaper publishers, we strongly disagree with the notion that their industry requires low-cost, government-subsidized, imported newsprint from Canada to sustain its business model", he said.

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Resolute and Catalyst are the two mandatory respondents in the anti-dumping probe. The Daily News is printed on paper manufactured at Norpac.

In the longer term, however, Mason forecasts that the industry will face tough times due to dropping demand that will likely be sped along by higher prices for its customers, largely struggling US newspaper publishers. "People in small towns all over America still depend on their local newspapers", according to their letter, the latest in a series of political efforts to sway the Commerce Department. Canada is also seeking relief from the softwood duties in appeals through the North American Free Trade Agreement and the World Trade Organization.

Catalyst does have other export options to mitigate the impact, said industry analyst Kevin Mason with the firm ERA Forest Products Research, but argued the trade action is a self-serving move that will only hurt US newsprint consumers in the long run. Ltd., Canfor Corp. and Tolko Industries Ltd.

The Commerce Department's decision isn't final. All other Canadian producers weighted an average of 6.53 per cent.

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