Industry responds after United States decision to impose newsprint duties

Industry responds after United States decision to impose newsprint duties

In 2016, imports of Canadian paper totaled $1.3 billion.

The tariff is as high as 9.93 per cent for Kruger Inc., which is based in Quebec.

But groundwood from Canada is subsidized and being dumped at below market value, according to USA manufacturer North Pacific Paper Co., also known as Norpac.

Newsprint is the latest Canadian product to be hit with preliminary countervailing duties from the United States.

The Canadian government has since filed a complaint to the World Trade Organization (WTO) over USA trade remedy measures, requesting WTO consultations with the United States with respect to anti-dumping and countervailing duty proceedings.

The Commerce Department's decision follows a petition filed by the North Pacific Paper Company last summer.

By contrast, Norpac has just one mill and is owned by a NY private equity firm. "This decision will protect American jobs in Washington, Mississippi and Georgia, and may even serve to create jobs in the U.S.as idled paper machines restart", Norpac chief executive officer Craig Anneberg said in a statement Tuesday night.

Neuheimer said about 5,000 jobs across Canada are directly linked to the newsprint business, and unlike softwood, where the industry had high prices to help offset the hurt of the US duties, newsprint margins are already so low that the impact of this is going to be felt immediately. "The Department of Commerce will continue to evaluate and verify the accuracy of this preliminary determination while standing up for the American business and worker".

"These tariffs will saddle publishers with additional costs that will ... accelerate the decline in both the printed newspaper and newsprint industries".

Washington-based North Pacific Paper Co. filed a petition a year ago that argued American mills couldn't compete against Ottawa's support for Canadian producers, whose business in the United States was worth $1.3 billion in 2016.

The preliminary countervailing duties against Canadian newsprint producers come as Canada and the United States remain deadlocked during talks to renegotiate the North American free-trade agreement and amid the prolonged fight over softwood lumber. "We will continue to work with our forest industry, provinces and territories, and communities across Canada to defend this vital sector against unfair and unwarranted USA trade measures and practices". Ltd., Canfor Corp. and Tolko Industries Ltd. A final decision is expected in May. Other Canadian producers pay the weighted average of 20.23 per cent.

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