Catalyst Paper 'Deeply Concerned' Over DOC's Fresh Anti-Dumping Duty

SEATTLE (Scrap Monster): Richmond, B.C.-based Catalyst Paper Corporation has expressed deep disappointment over the recent imposition of high anti-dumping duties on exports of certain paper products to the US.

The U.S. Department of Commerce (DOC) had earlier announced that 22.16% anti-dumping duty deposit will be charged on exports of uncoated groundwood paper products made at all of its Canadian mills. The Commerce Department investigation had accused the company of unfair trade practices and dumping its newsprint on the American market. It had alleged Catalyst of selling its newsprint t as much as 22.16% less than fair value. Meantime, directory paper exports were exempted from the duty.

The preliminary determination by the US DOC made in early January this year already requires the company to pay 6.09% countervailing duty deposit too. The final determination of both duties is expected only by early August this year.

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Ned Dwyer, president and CEO, Catalyst Paper stated that the company is very much disappointed with the US DOC’s decision. He termed the US trade action as unwarranted and without merit. The anti-dumping duty deposit on top of the existing countervailing duty is feared to pose critical cost challenge to the company, threatening their competitiveness, he said. Further, he added that the company would continue to vigorously defend against the onerous duties. Incidentally, Catalyst Paper exports a significant portion of its Canadian newsprint production to the US.

Bruce Ralston, B.C.’s Minister of Jobs, Trade and Technology also expressed disappointment on the decision to impose unfair tariff. Extending his government’s full support, he stated that everything possible will be done in co-operation with the company and the federal government, to fight the preliminary decision.

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