USA newspapers are sounding the alarm that they face having to raise subscription prices, reduce the frequency of publication or even be forced to shut down in some cases after the Department of Commerce imposed duties on Canadian newsprint. The duty against Kruger is 9.93% and the preliminary penalty against White Birch is 0.65%.
Commerce is expected to make final antidumping and countervailing duty determinations in July, and the International Trade Commission will make its final injury determination in August 2018, he said.
But that's what will happen if the federal government imposes duties of up to 50 percent on Canadian newsprint, upon which American newspaper companies rely.
"Today's preliminary decision allows US producers to receive relief from the market-distorting effects of potential government subsidies while taking into account the need to keep groundwood paper prices affordable for domestic consumers", said Secretary Ross.
"What the USA uncoated groundwood papers industry wants is a level playing field, and this decision is an important step forward for American producers, workers and their families that have been the victims of unfair Canadian trade practices for too long", stated Norpac chief executive Craig Anneberg.
Anneberg said that's a "small price to pay to preserve American manufacturing jobs" in Washington, Mississippi and Georgia.
In August, Norpac announced plans to idle one of its three paper machines, framing the production cuts as a response to competition from subsidized Canadian manufacturers.
Mr. Boyle criticized Norpac, owned by hedge fund One Rock Capital Partners LLC of NY, for minimizing the ripple effects of the duties.
"Now they are perversely manipulating trade law in an effort to satisfy their own personal greed".
In a joint statement, Chrystia Freeland, Minister of Foreign Affairs, and Jim Carr, Minister of Natural Resources, said they are "deeply disappointed" with the decision.
Given its "outlier status", the letter said, "it appears that One Rock Capital Partners may be using the petitions as a means of increasing the short-term value of this one mill, without any regard for the dramatic negative implications for US newspapers in thousands of small cities and towns".
"Canada's forest industry sustains good, middle-class jobs and provides economic opportunities for rural and Indigenous communities across our country". It has asked the World Trade Organization to examine the American use of punitive duties, alleging that they violate global law.
Last month, about 1,100 small newspapers jointly filed a letter with Ross that warned "many small-town papers will be at risk of failing" if higher newsprint costs are added to existing problems caused by the movement of many advertisers to online media.
Groundwood from Canada is subsidized and being dumped at less than fair value, according to complaints filed to the Commerce Department in August by US producer North Pacific Paper Co., also known as Norpac.
"Forest Products Association of Canada [FPAC] strongly believes that these duties are completely unjustified and protectionist in nature", said FPAC CEO Derek Nighbor.
"This is not really based on sound objective methods", said Neuheimer.
"Forestry is as important to the Canadian economy as energy", said Renaud Gagné, Unifor Quebec Director.
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