The investigation focuses on the pulp paper mechanical uncoated, which includes, among others, newsprint, paper, and publishing paper for books.
The u.s. survey on imports of certain paper from Canada is simply not the road, supports the forest Products committed to the approach of a decision of the department of Commerce regarding imposition of countervailing and anti-dumping.
In a letter of 26 pages sent Thursday to Commerce secretary, Wilbur Ross, Resolved complains to the department from the folder of the timber, which has led to punitive duties last spring, and apply it to a different situation.
“Nothing, can reasonably say that the investigation on the alleged subsidies in the timber, derived timber standing, is translated into a survey paper, which is produced much further downstream,” wrote the company, already hit by the duties on timber.
The u.s. survey stems from a complaint filed by a u.s. producer, the North Pacific Paper Company (NORPAC), which has a factory in the State of Waghington. The company belonged in part to the giant Weyerhaeuser, but was sold last year to One Rock Capital Partners, a hedge fund in New York.
Announced in August 2017 by the u.s. department of Commerce, the investigation focuses on the pulp paper mechanical uncoated, which includes, among others, newsprint, paper, and publishing paper for books. In 2016, the canadian companies have exported to 1.27 billion US $in paper uncoated in the United States, according to Washington.
The Commerce department intends to publish a preliminary decision on the countervailing duty on January 8, 2018, and on the anti-dumping duties on 16 January.
The NORPAC is estimated that canadian producers benefit from ” government grants significant “. But it also says that Resolved has an advantage when it sells electricity to Hydro-Québec or the ontario network. This type of relationship is normal, retorted, Resolved, as the distributors can get the additional peak without having to build new facilities. In Ontario, for example, it uses biomass to generate power at its plant in Thunder Bay.
“The department of Commerce wants to impose fees to those who contribute to reduce the use of hydrocarbons could be a scandal of modern times, wrote Resolved. The department seeks, in a creative way, grants where there is not. “
The possible imposition of countervailing and anti-dumping are deeply concerned by the News, Media Alliance, which represents 1100 american newspapers. They are already struggling with declines in advertising revenues and subscribers, as well as with a shift of advertisers to digital platforms. Not only fear of additional closures, but they question the intentions of the hedge fund that owns the NORPAC.
“We believe that [the file] does not justify the imposition of duties, which would have an impact is very severe on our industry and on communities across the United States,” wrote the organization to Wilbur Ross on 4 December last. “The demands of the NORPAC are based on a misreading of a changing market and seem to be motivated by strategies of short-term investment of the hedge fund that owns the company. “
If the demand for newsprint is declining, says the organization, this is due to the consumption of more information on digital platforms.
“In recent years, the market share held by canadian companies in the imports of uncoated paper has, in fact, less, she adds. Other american producers of newsprint, as opposed to the rights considered, just like the American Forest and Paper Association. “