Industry and Union Call on U.S. to Extend Duties on Paper Imports from China and Indonesia - Global Trade Magazine
  October 11th, 2015 | Written by

Industry and Union Call on U.S. to Extend Duties on Paper Imports from China and Indonesia

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  • ITC found unfairly traded imports from China and Indonesia contributed to mill closures and job losses.
  • Since duties were imposed, imports from China and Indonesia have dropped and fair market conditions restored.
  • Industry exec: World paper markets are under pressure; dumping and subsidy orders assure competitive markets.

Verso Corporation, Sappi North America, and Appleton Coated LLC, together with the United Steelworkers (USW), have called for an extension of duties on imports of coated paper from China and Indonesia.

Those imports were previously determined to have threatened material injury to U.S. producers and workers. Duties resulting from this determination are periodically reassessed under sunset reviews.

Coated paper is generally used for printing multicolored graphics for books, catalogues, and magazines.

The original decision to impose duties was made by the U.S. International Trade Commission (ITC) in a unanimous decision in November 2010. That decision was based on petitions filed by NewPage Corporation (since acquired by Verso), Sappi North America, Appleton Coated LLC and the USW in September 2009 with the Department of Commerce and the ITC.  The petitions alleged that certain coated paper from China and Indonesia had been subsidized and dumped in the United States, resulting in injury to the domestic industry and its employees.

The petitions showed, and the Commerce Department and ITC found, that unfairly traded imports from China and Indonesia were a significant contributor to the underutilization of industry capacity, mill closures, and job losses.

Since duties were imposed, imports from both China and Indonesia have dropped dramatically and fair market conditions have been restored, according to a statement released by the petitioners.

“Today, coated paper is produced across the United States by thousands of workers who are paid good, family supportive wages,” said the statement.

“Continuing relief under the existing ITC orders will help maintain a level playing field by deterring Chinese and Indonesian government subsidies and dumping that would likely resume if the duties were to be eliminated,” said David J. Paterson, CEO of Verso Corporation.

“World markets in paper are under constant pressure, and dumping and subsidy orders have been a principal means of assuring the existence of a fair and competitive market in these products,” said Doug Osterberg, CEO of Appleton Coated LLC. “Our customers deserve products that are fairly priced and confidence that existing suppliers will continue to meet their needs.”