The Commerce Department on Wednesday initiated antidumping and countervailing duty investigations to determine if uncoated groundwood paper from Canada is being dumped on the U.S. market and if these producers are receiving unfair subsidies.
The Commerce Department on Wednesday initiated antidumping and countervailing duty investigations to determine if uncoated groundwood paper from Canada is being dumped on the U.S. market and if these producers are receiving unfair subsidies from the Canadian government.
North Pacific Paper Co. of Longview, Wash., petitioned for the investigations on Aug. 9. The company estimated dumping margins range from 23.45 to 54.97 percent and the Canadian subsidies are above de minimis.
Dumping occurs when a foreign company sells its product in the United States at less than fair value, while countervailable subsidies are given to companies by foreign governments to encourage them to export or use domestic inputs to manufacture their products over imports.
If Commerce determines that the paper from Canada is being dumped into the U.S. market or receiving unfair government subsidies, and if the U.S. International Trade Commission (ITC) determines that the import is dumped or unfairly subsidized and harms U.S. industry, Commerce will impose duties on those imports in the amount of dumping or subsidization.
According to Commerce In 2016, uncoated groundwood paper imports from Canada in 2016 were valued at about $1.27 billion.
U.S. investigates Canadian paper imports for dumping
