The U.S. Commerce Department on March 13 imposed preliminary antidumping duties between zero percent to 22.16% on uncoated groundwood paper imports from Canada as it said an investigation showed some of them were being dumped.
The antidumping duties were below the estimated 23.45% to 54.97% dumping margins alleged by the petitioner, North Pacific Paper Co. LLC, the commerce department said in a statement. A final determination is expected on or about Aug. 2.
U.S. Commerce Secretary Wilbur Ross said the 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."
In 2016, imports of uncoated groundwood paper from Canada, which are used in newsprint, were valued at about $1.27 billion, commerce department data showed.
Canadian Minister of Foreign Affairs Chrystia Freeland and Minister of Natural Resources Jim Carr said in a joint statement they were "disappointed" with the preliminary antidumping determination, which follows a previous imposition of preliminary countervailing duties of between 4.42% to 9.93% on Jan. 9.
"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 Freeland and Carr, adding that Canada will "defend this vital sector against unfair and unwarranted U.S. trade measures and practices."
Catalyst Pulp and Paper Sales Inc. and Catalyst Paper General Partnership were slapped with a 22.16% antidumping duty.
Resolute FP Canada Inc and Donohue Malbaie Inc., both subsidiaries of Resolute Forest Products Inc., along with White Birch Paper Canada Co group and related companies Papier Masson WB LP, FF Soucy WB LP and Stadacona WB LP, were assigned a zero percent duty, the commerce department said.
A 22.16% duty was set for all other producers and exporters of uncoated groundwood paper from Canada.
This latest U.S. trade action follows the imposition of stiff duties against Canadian softwood lumber in 2017, and as the U.S., Canada and Mexico face tough renegotiations on the North American Free Trade Agreement.
