US ITC votes on trade case against uncoated paper imports

SPOKANE (Scrap Monster): The US International Trade Commission (ITC) has given preliminary affirmative vote on investigations of trade case against dumping of uncoated paper imports into the country. The investigations are based on petitions by four domestic manufacturers along with United Steelworkers (USW) union. The four companies- Domtar Corporation, Packaging Corporation of America (PCA), Finch Paper, LLC and P.H. Glatfelter Company had alleged that dumping of uncoated paper products from Australia, Brazil, China, Indonesia and Portugal hurts the local producers.

The trade body vote is based on preliminary finding that the indicates that the imports from the above countries are likely threatening domestic paper industry as well as large number of jobs associated with the sector. The Commission will now continue investigating the charges regarding unfair trade practices, raised by the companies and workers union in their filing.

The USW represents approximately 130,000 workers in the industry. According to estimates, the US paper industry witnessed heavy job losses since 2012 on the back of declining production at mills. The flooding of products from overseas markets has led to shutdown of many uncoated paper manufacturing facilities in the country, USW noted. It urged the administration to restore fair trade practices in order to preserve paper industry jobs.

The petition calls for imposition of duties to offset dumping of products from the mentioned five countries and also to offset subsidies on imports from Indonesia and China. The imports increased 44% from 2011 to 2013. The imports from these five countries accounted for 86% of total imports by the country during the nine-month period from January to September last year. The imports also accounted for more than one-fifth of the US consumption.

Meantime, the Commerce Department announced its decision to initiate antidumping duty investigations on uncoated paper imports from the five countries and countervailing duty investigations on imports from China and Indonesia.