BC vows to fight United States decision on pulp and paper tariffs

Lloyd Doyle
March 15, 2018

In January, Canadian newsprint producers were hit with an overall tariff of 6.53 per cent.

Canada's government said it was "disappointed" by the new U.S. measure. "Some small-market or rural newspapers, with slim margins, will close", Mr. Chavern said.

Norpac alleged in a petition filed on August 9 that Canadian papermakers were dumping the product in the US for between 23 and 55 percent below fair market value.

It says Resolute Forest Products and White Birch were both found to have dumping rates of 0 per cent.

U.S. Senators Tom Udall and Martin Heinrich and U.S. Representatives Ben Ray Luján, Steve Pearce and Michelle Lujan Grishamurged Secretary of Commerce Wilbur Ross not to approve additional tariffs on newsprint, which could devastate local papers across New Mexico.

DOC's decision follows an initiative by USA manufacturer of printing and writing papers North Pacific Paper Company (Norpac), who petitioned the agency in August a year ago to impose antidumping and countervailing duties.

Commerce said Tuesday that it has found Canadian producers are selling newsprint for up to 22 percent less than fair value.

In 2016, imports of uncoated groundwood paper from Canada were valued at an estimated $1.27 billion, it said.

The Commerce Department focused its investigations of the groundwood issue on three Canadian companies, which it refers to as mandatory respondents. In January, preliminary countervailing duties were already imposed on the same paper grades. The addition of 22.16 per cent in anti-dumping duties raises the company's combined tariff to 28.25 per cent. "We will work closely with Catalyst and the federal government to fight this preliminary decision by the U.S. Department of Commerce and demand that B.C.is treated fairly by its largest trading partner".

Montreal-based Resolute Forest Products Inc. and Catalyst are the mandatory respondents in the anti-dumping case. The company is anxious about the impact, notably at its mill in Corner Brook, Nfld., and two of its plants in Quebec (Brompton and Trois-Rivières).

Newfoundland and Labrador Premier Dwight Ball said the Corner Brook mill is "caught in the middle" of trade disputes between Canada and the United States.

President Donald Trump has forced a renegotiation of the North American Free Trade Agreement with Canada and Mexico, arguing that it is a bad deal for the United States.

The US announcement came as Canada's Foreign Minister, Chrystia Freeland, was in Washington to discuss bilateral trade relations.

Other reports by Iphone Fresh

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