USW Applauds DOC Imposition of Dumping Margins on Uncoated Paper Imports

 

The United Steelworkers (USW, Washington, D.C., USA, this week commended the U.S. Department of Commerce (DOC) for its preliminary dumping duty determinations against certain uncoated paper imports from China, Brazil, Portugal, Australia, and Indonesia. If confirmed by the process, tariffs will be imposed on imports of certain uncoated paper to offset the impact of the unfair advantage caused by the dumped products. 

The determination placed dumping margins on uncoated paper ranging to 193.30%. For Australia, the rate is 40.65%; for Brazil, 33.09% to 42.42%; for China, 97.48% to 193.30%; for Indonesia, 0% to 51.75%; and for Portugal, 29.53%.

 

"The dumping margins will help offset unfair and predatory trade practices facing the industry," said USW International President Leo W. Gerard. "Time after time, our competitors have targeted this sector and dumped and subsidized sales into our market. Since 2011, eight mills that manufacture this product have shut down as a result of dumped and subsidized imports. Some 2,500 jobs were lost. This has devastated working families and their communities. 

"While these trade cases are vital to helping level the playing field, we also need new trade policies, actively enforced by the government, that do not require injury before relief is provided. Workers are sick and tired of Washington sitting on its hands while China and other countries cheat and target our market." 

 

As a result of the DOC's actions, importers of the covered uncoated paper from the subject countries will be required to immediately post a bond or deposit cash in an amount equal to the announced margins pending final resolution of the cases later this year.

 

"Every exporter from every country will now be facing cash deposit requirements of about 30% to more than 300% so we should see substantial relief in the market," said USW International VP Jon Geenen.

The petitions cover all uncoated paper in sheets, including cut-size and folio, weighing between 40 and 150 gsm, and having a GE brightness level of 85 or higher.

   

The decision was a result of unfair trade cases filed by the USW and four companies on January 21, 2015, with the (DOC) and the U.S. International Trade Commission. They alleged that certain uncoated paper from the five countries had been dumped into the U.S., resulting in injury to the domestic industry and its employees. The petitions also alleged that China and Indonesia subsidized the sale of these products and should be subject to countervailing duties. The four manufacturers are Domtar Corp., Finch Paper LLC, Packaging Corp. of America (PCA), and P.H. Glatfelter Co.

The decision by the DOC supports the allegations in the petitions that claim that imports from these five countries were dumped. Dumping occurs when a foreign producer sells into the U.S. market for less than the price that a producer charges in its home market or when its U.S. prices are below the cost to make the product.

The decision follows the Commerce Department's determination on June 22, 2015, that Chinese and Indonesian coated paper producers benefitted from a variety of subsidies and the International Trade Commission's earlier preliminary decision finding that the domestic industry had been materially injured by imports of the subject paper. Those two countries were the only ones where subsidies were alleged. Commerce found then that China is subsidizing their producers by 5.82% to 126.42%, and Indonesia is doing the same, at levels ranging from 43.19% to 131.12%.

 

"Our trade laws are designed to restore fair market conditions," said Geenen. "China and other countries have been dumping products into our market to steal our jobs. We won't tolerate unfair foreign trade practices that hurt our families and the businesses in our communities. We will never let up the fight for our members' jobs. Today's decisions validate our charges and ensure that our members, who work hard and play by the rules, will continue to earn a decent living."

The USW represents 850,000 workers in North America employed in many industries that include metals, rubber, chemicals, paper, oil refining and the service and public sectors.