Canada Files WTO Complaint against China’s Dissolving Pulp Duties

 

Canada has filed a complaint to the World Trade Organization regarding China's imposition of dumping duties against Canadian exports of dissolving pulp. The duties, starting at 13%, have been imposed against a number of companies, including Fortress Paper and Tembec, which exported $317 million in dissolving pulp to China last year. Nearly half of the 750,000 metric tons of dissolving pulp produced in Canada was shipped to China, according to a report this week by The Canadian Press.

 

China first imposed duties in November 2013 against Canada, the U.S., and Brazil, claiming the imports hurt its domestic pulp market. In April of this year, China made permanent the duties, which range up to 23.7% against dissolving pulp produced by new Canadian mills.

 

Shannon Gutoskie, a spokeswoman for International Trade Minister Ed Fast, called the duties "unfounded and discriminatory measures."

 

Under international trade rules, dumping generally refers to selling exported goods below prices in the producer's home market. Under WTO rules, duties can be applied by importing countries if the dumping is harming their domestic producers, The Canadian Press article noted.

 

Ottawa is seeking consultations as a first step under WTO rules to reach a settlement. China has 30 days to engage in talks unless the countries agree to another timeline. If that isn't successful, Canada can seek the establishment of a WTO panel and pursue formal litigation.