Today, U.S. Secretary of Commerce Wilbur Ross announced the affirmative preliminary determination in the countervailing duty (CVD) investigation of imports of uncoated groundwood paper from Canada.
“Today’s preliminary decision allows U.S. producers to receive relief from the market-distorting effects of potential government subsidies while taking into account the need to keep groundwood paper prices affordable for domestic consumers,” said Secretary Ross. “The Department of Commerce will continue to evaluate and verify the accuracy of this preliminary determination while standing up for the American business and worker.”
The Commerce Department preliminarily determined that exporters from Canada received countervailable subsidies ranging from 4.42 to 9.93 percent.
As a result of today’s decision, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits from importers of uncoated groundwood paper from Canada based on these preliminary rates.
In 2016, imports of uncoated groundwood paper from Canada were valued at an estimated $1.27 billion.
The petitioner is North Pacific Paper Company (WA).
Commerce is currently scheduled to announce its final CVD determination on or about May 22, 2018. If Commerce makes an affirmative final determination and the U.S. International Trade Commission (ITC) makes an affirmative final injury determination, Commerce will issue a CVD order. If Commerce makes a negative final determination or the ITC makes a negative final determination of injury, the investigation will be terminated and no order will be issued.
Enforcement of U.S. trade law is a prime focus of the Trump administration. From January 20, 2017, through January 9, 2018, Commerce has initiated 82 antidumping and countervailing duty investigations – a 58 percent increase from 52 in the previous year.
The CVD law provides U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of foreign government unfair subsidization of imports into the United States. Commerce currently maintains 418 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.
Click HERE for a fact sheet on today’s decision.
The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international law and is based solely on factual evidence.
Imports from companies that receive unfair subsidies from their governments in the form of grants, loans, equity infusions, tax breaks, and low-priced production inputs are subject to “countervailing duties” aimed at directly countering those subsidies.