Catalyst hit hard with anti-dumping duties

Darnell Taylor
March 15, 2018

In response to a trade petition filed by Norpac last summer, the U.S. Department of Commerce announced Tuesday that it will impose anti-dumping duties on uncoated groundwood paper from Canada.

The Canadian government said it was "disappointed with the preliminary anti-dumping determination".

Eight New Mexico newspapers - the Alamogordo Daily News, Carlsbad Current-Argus, Deming Headlight, Las Cruces Sun-News, Las Vegas Optic, Los Alamos Monitor, Ruidoso News and The Farmington Daily Times - are among more than 1,000 community newspapers that signed onto a letter protesting the decision with the Commerce Department.

As a result of the latest decision, US customs authorities will collect cash deposits from importers of the paper from Canada based on these preliminary rates, the department said.

Other groundwood products include book-grade paper and some types of printing and writing paper.

THE United States administration announced anti-dumping duties yesterday on imports of one kind of paper from Canada, further straining tense trade relations. "Some small-market or rural newspapers, with slim margins, will close", Mr. Chavern said.

DOC's decision follows an initiative by United States 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. Association CEO Derek Nighbor said the tariffs are "completely unjustified and represent a costly and losing proposition for workers and paper customers on both sides of the border".

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With preliminary countervailing duties already in place, Catalyst and Kruger are now facing combined duties of 28.25% and 32.09%, respectively.

The new duties were announced two months after another Commerce investigation concluded that Canadian provincial governments are unfairly subsidizing newsprint.

"Today, people working at Catalyst mills in Port Alberni, Powell River and Crofton are receiving the news of yet another unfair decision by the US against B.C.'s newsprint industry, and their communities".

The commerce department investigation accuses Catalyst of unfair trade practices and dumping its newsprint on the American market below what it is sold for domestically.

In a news release, Kruger called the duties "unfounded", and denied dumping its products. And Bruce Ralston, B.C.'s Jobs and Trade Minister, said he will work with Catalyst and Ottawa to help combat the "unfair tariffs".

"Any duties will have a direct and negative impact on?U.S. newspapers, especially those in small cities and towns, ?and result in job losses in the American printing sector?", said Chrystia Freeland, Minister of Foreign Affairs, and Jim Carr, Minister of Natural Resources, in a joint statement.

Bryan Yu, deputy chief economist at Central 1 Credit Union, said the decision on newsprint tariffs underscores the confrontational position of the Trump administration.

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