Paper Tariff Could Lead To Price Increase, Job Loss

The U.S. Commerce Department announced its preliminary determination in the ongoing countervailing duty (CVD) investigation on imports of coated free sheet paper (CFS) from China, Korea and Indonesia. The initial determination shows that producers and exporters of CFS paper have received countervailable subsidies, ranging up to 20.35 percent in China, up to 1.76 percent in Korea, and 21.24 percent in Indonesia. As a result, the U.S. Customs and Border Protection is required to apply anti-dumping duties to imports of CFS.

PIA/GATF believes these duties will cause shortages in the U.S. market for CFS paper and a rise in paper costs, reducing the volume of U.S. print production, resulting in the loss of jobs in the industry and creating more jobs overseas. Canada’s printing industry, which falls inside the NAFTA free trade zone, will also be handed a competitive advantage. Trade experts anticipate price increases and job losses will follow.

A formal decision on the CVD is scheduled for June.