Today, U.S. Secretary of Commerce Wilbur Ross announced the initiation of new antidumping duty (AD) and countervailing duty (CVD) investigations to determine whether imports of uncoated groundwood paper from Canada are being dumped in the United States and whether producers in Canada are receiving alleged unfair subsidies.
“The United States is dedicated to free, fair, and reciprocal trade with Canada, and guarantees that this case will be decided strictly on a full and fair assessment of the facts,” said Secretary Ross. “The Trump administration is committed to enforcing America’s vital trade laws to ensure U.S. businesses and workers have a fair chance to compete.”
These AD and CVD investigations were initiated based on petitions filed by North Pacific Paper Company (Longview, Wash.) on August 9. The estimated dumping margins alleged by the petitioner range from 23.45 to 54.97 percent and the unfair subsidies are estimated to be above de minimis.
In the AD investigation, the Commerce Department will determine whether imports of uncoated groundwood paper from Canada are being dumped in the U.S. market at less than fair value.
In the CVD investigation, the Commerce Department will determine whether Canadian producers of uncoated groundwood paper are receiving unfair government subsidies.
If the Commerce Department determines that uncoated groundwood paper from Canada is being dumped into the U.S. market and/or receiving unfair government subsidies, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized U.S. imports of uncoated groundwood paper from Canada are causing injury to the U.S. industry, the Commerce Department will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
In 2016, imports of uncoated groundwood paper from Canada were valued at an estimated $1.27 billion.
Click HERE for a fact sheet on these initiations.
During the Commerce Department’s investigations into whether uncoated groundwood paper is being dumped and/or unfairly subsidized, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being harmed by such imports.& The ITC will make its preliminary determinations on or before September 25. If the ITC preliminary determines that there is injury or threat of injury, then the Commerce Department investigations will continue, with a preliminary CVD determination scheduled for November 2017 and a preliminary AD determination scheduled for January 2018, unless these deadlines are extended.
If the Commerce Department preliminary determines that dumping or unfair subsidization is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing the subject uncoated groundwood paper from Canada.
Final determinations by the Commerce Department in these cases are scheduled for January 2018 for the CVD investigation, and April 2018 for the AD investigation, but those dates may be extended. If the Commerce Department finds that products are not being dumped or unfairly subsidized, or the U.S. International Trade Commission finds in its final determinations there is no harm to the U.S. industry, then the investigations will be terminated and no duties will be applied collected.
From January 20, 2017, through August 29, 2017, Commerce has initiated 58 AD and CVD investigations. Commerce currently maintains 407 AD and CVD duty orders which provide relief to American companies and industries impacted by unfair trade.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to “antidumping” duties. Companies that receive unfair subsidies from their governments, such as grants, loans, equity infusions, tax breaks and production inputs, are subject to “countervailing duties” aimed at directly countering those subsidies.