stats
globeinteractive.com: Making the Business of Life Easier

   Finance globeinvestor   Careers globecareers.workopolis Subscribe to The Globe
The Globe and Mail /globeandmail.com
Home | Business | National | Int'l | Sports | Columnists | The Arts | Tech | Travel | TV | Wheels
space


Search

space
  This site         Tips

  
space
  The Web Google
space
   space



space

  Where to Find It


Breaking News
  Home Page

  Report on Business

  Sports

  Technology

space
Subscribe to The Globe

Shop at our Globe Store


Print Edition
  Front Page

  Report on Business

  National

  International

  Sports

  Arts & Entertainment

  Editorials

  Columnists

   Headline Index

 Other Sections
  Appointments

  Births & Deaths

  Books

  Classifieds

  Comment

  Education

  Environment

  Facts & Arguments

  Focus

  Health

  Obituaries

  Real Estate

  Review

  Science

  Style

  Technology

  Travel

  Wheels

 Leisure
  Cartoon

  Crosswords

  Food & Dining

  Golf

  Horoscopes

  Movies

  Online Personals

  TV Listings/News

 Specials & Series
  All Reports...

space

Services
   Where to Find It
 A quick guide to what's available on the site

 Newspaper
  Advertise

  Corrections

  Customer Service

  Help & Contact Us

  Reprints

  Subscriptions

 Web Site
  Advertise

  E-Mail Newsletters

  Free Headlines

  Globe Store New

  Help & Contact Us

  Make Us Home

  Mobile New

  Press Room

  Privacy Policy

  Terms & Conditions


GiveLife.ca

    

PRINT EDITION
U.S. deals blow to Canadian newsprint producers with initial countervailing duties
space
space
By BRENT JANG
  
  

Email this article Print this article
Wednesday, January 10, 2018 – Page B1

VANCOUVER -- The U.S. Department of Commerce has decided to impose initial duties of up to 9.93 per cent against Canadian newsprint sold south of the border.

The Commerce Department made its ruling late Tuesday on countervailing duties, saying Canadian producers of uncoated groundwood paper such as newsprint are receiving subsidies.

A second decision is scheduled by March 7, when the Commerce Department will rule on whether to slap anti-dumping tariffs on Canadian shipments of groundwood into the United States.

U.S. newspaper publishers have been warning that a combination of countervailing and anti-dumping duties will have a devastating impact on an industry already struggling to cope as readers increasingly make the transition from printed products to digital devices.

A wide range of U.S. senators and members of the House of Representatives - Republicans and Democrats - have sided with American newspaper publishers and printers.

But groundwood from Canada is subsidized and being dumped at below market value, according to U.S. manufacturer North Pacific Paper Co., also known as Norpac.

The company, which is based in Longview, Wash., complained to the Commerce Department in August that U.S. paper makers are being hurt by Canadian groundwood.

The three mandatory respondents in the countervailing investigation into subsidies in Canada are Montreal-based firms Kruger Inc. and Resolute Forest Products Inc. and Catalyst Paper Corp. of Richmond, B.C.

The Commerce Department imposed a preliminary countervailing tariff of 9.93 per cent on Kruger, 6.09 per cent on Catalyst, 4.42 per cent on Resolute, 0.65 per cent on White Birch Paper Canada Co. and a weighted average of 6.53 per cent against other Canadian paper mills. The tariffs are expected to take effect within one week.

Norpac, owned by hedge fund One Rock Capital Partners LLC of New York, said subsidies in Canada include breaks on electricity rates and unfair financial assistance.

"Norpac has a world-class facility that can compete with anyone around the world, but we need to be able to compete on a level playing field. This decision will protect American jobs in Washington, Mississippi and Georgia, and may even serve to create jobs in the U.S. as idled paper machines restart," Norpac chief executive officer Craig Anneberg said in a statement on Tuesday night. "While we understand the concerns recently surfaced by some newspaper publishers, we strongly disagree with the notion that their industry requires low-priced, government-subsidized, imported newsprint from Canada to sustain its business model."

In sharp contrast to U.S. publishers' warnings of potential devastation for small-town newspapers, Mr. Anneberg estimates that the impact of the Commerce Department's countervailing ruling would be less than 5 cents (U.S.) for the average printed newspaper - "a small price to pay to preserve American manufacturing jobs."

Resolute and Catalyst are the two mandatory respondents in the antidumping probe. Connecticut-based White Birch Paper Co., which runs three Quebec paper mills through its Canadian unit, is the voluntary respondent in both the countervailing and antidumping cases.

Norpac is targeting products such as newsprint, directory paper, book-grade paper and groundwood printing and writing paper. About 80 per cent of newsprint is sold directly to newspaper publishers, Norpac estimates.

Eight U.S. senators expressed their concerns in a joint letter last week to Commerce Secretary Wilbur Ross and U.S. Trade Representative Robert Lighthizer.

"People in small towns all over America still depend on their local newspapers," according to their letter, the latest in a series of political efforts to sway the Commerce Department.

The preliminary countervailing duties against Canadian newsprint producers come as Canada and the United States remain deadlocked during talks to renegotiate the North American free-trade agreement and amid the prolonged fight over softwood lumber.


Huh? How did I get here?
Return to Main Murray_Campbell Page
Subscribe to
The Globe and Mail
 

Email this article Print this article

space  Advertisement
space

Need CPR for your RSP? Check your portfolio’s pulse and lower yours by improving the overall health of your investments. Click here.

Advertisement

7-Day Site Search
    

Breaking News



Today's Weather


Inside

Rick Salutin
Merrily marching
off to war
Roy MacGregor
Duct tape might hold
when panic strikes


Editorial
Where Manley is going with his first budget




space

Columnists



For a columnist's most recent stories, click on their name below.

 National


Roy MacGregor arrow
This Country
space
Jeffrey Simpson arrow
The Nation
space
Margaret Wente arrow
Counterpoint
space
Hugh Winsor  arrow
The Power Game
space
 Business


Rob Carrick arrow
Personal Finance
space
Drew Fagan arrow
The Big Picture
space
Mathew Ingram arrow
space
Brent Jang arrow
Business West
space
Brian Milner arrow
Taking Stock
space
Eric Reguly arrow
To The Point
space
Andrew Willis arrow
Streetwise
space
 Sports


Stephen Brunt arrow
The Game
space
Eric Duhatschek arrow
space
Allan Maki arrow
space
William Houston arrow
Truth & Rumours
space
Lorne Rubenstein arrow
Golf
space
 The Arts


John Doyle arrow
Television
space
John MacLachlan Gray arrow
Gray's Anatomy
space
David Macfarlane arrow
Cheap Seats
space
Johanna Schneller arrow
Moviegoer
space
 Comment


Murray Campbell arrow
Ontario Politics
space
Lysiane Gagnon arrow
Inside Quebec
space
Marcus Gee arrow
The World
space
William Johnson arrow
Pit Bill
space
Paul Knox arrow
Worldbeat
space
Heather Mallick arrow
As If
space
Leah McLaren arrow
Generation Why
space
Rex Murphy arrow
Japes of Wrath
space
Rick Salutin arrow
On The Other Hand
space
Paul Sullivan arrow
The West
space
William Thorsell arrow
space





Home | Business | National | Int'l | Sports | Columnists | The Arts | Tech | Travel | TV | Wheels
space

© 2003 Bell Globemedia Interactive Inc. All Rights Reserved.
Help & Contact Us | Back to the top of this page