Canadian mills challenge US DOC’s interim duty on paper products

HALIFAX (Scrap Monster): The Canadian paper mills who are badly hit by the newly imposed trade duty on coated paper products exports have decided to fight the decision. It must be noted that the US Department of Commerce (DOC) had recently announced that the region’s mills will have to pay interim duty on exports of their paper products into the US.

The trade action by the US follows complaint filed by two domestic US mills, alleging that subsidized imports of supercalendered paper from Canada causes material injury to US industry. Following investigation, the DOC imposed interim duty of 20.33% on Port Hawkesbury Paper in the N.S. Also, a duty of 11.9% was imposed on New Brunswick-based J.D. Irving mill and British Columbia-based Catalyst Paper. Meantime, Resolute Paper will face a tariff of 2%.

The website of the US Agency has not provided details that led to imposition of high tariffs on Canadian exports. However, DOC officials are likely to visit the mills prior to announcement of a final decision by mid-October. It will be further heard by the US International Trade Commission which will announce the trade action by early-December this year.

According to Port Hawkesbury Paper, the US decision is likely to impact the operations of the recently restarted Cape Breton mill as a good portion of the mill’s production is exported to the US. The management announced its decision to fight hard against the decision and demanded that the tariffs must be either eliminated in full or cut substantially.

Meantime, Ed Fast, Minister for International Trade, in an e-mail statement, expressed his disappointment over the US ruling and urged US DOC authorities to make a thorough review of all the facts before arriving at any final decision on the matter.

The trade action, if finalized, will result in an estimated collection of nearly $4 million in duties per month.