U.S. Trade Panel's Vote Ends Tariffs on Canadian Newsprint

 

According to an article on Wednesday afternoon (Aug. 29, 2018) published by Syracuse.com (Syracuse, N.Y., USA) The U.S. International Trade Commission (Washington, D.C., USA) ruled Wednesday against an American paper mill's complaint that it was harmed by cheap imports of Canadian newsprint, effectively ending temporary tariffs imposed by the U.S.

The decision is described in the article as a "victory" for U.S. newspapers and publishers and more than 100 members of Congress who had argued against the tariffs on uncoated groundwood paper from Canada. The paper is used as newsprint by American newspapers.

"Today is a great day for American journalism," David Chavern, president and CEO of the News Media Alliance said after the decision. The alliance represented American newspapers in the trade case.

"The ITC's decision will help to preserve the vitality of local newspapers and prevent additional job losses in the printing and publishing sectors," Chavern said in a statement. "The end of these unwarranted tariffs means local newspapers can focus once again on playing a vital role in our democracy by keeping citizens informed and connected to the daily life of their communities." 

The U.S. Department of Commerce said August 2 that it wanted to make the tariffs permanent but agreed to reduce the maximum duties from 22.16% to 16.88%. Both the Commerce Department and International Trade Commission would have had to rule in favor of the complaint filed by a single American paper mill in order for permanent tariffs to be imposed on Canadian imports.

North Pacific Paper in Longview, Washington said that it couldn't compete against Canadian paper mills, which it claimed received government subsidies and sold paper at below-market prices to U.S. customers. No other American paper mills supported the company's complaint. Opponents of the tariffs said it would cause unintended harm to the U.S. economy, threatening 600,000 American jobs in the newspaper, retail, printing and publishing industries. The North Pacific Paper Co., or NORPAC, employs about 385 people. The mill is owned by a private equity firm in New York City. 

U.S. Sen. Charles Schumer, Democrat-N.Y., the Senate minority leader, was among the members of Congress who asked both the Commerce Department and International Trade Commission to stop the tariffs.

"The International Trade Commission made exactly the right decision today to completely eliminate them," Schumer said after the vote Wednesday. "I will remain vigilant to make sure that they never return."

The International Trade Commission members did not explain the reasons behind their decision today. The independent federal agency must submit its written determination and views to the Commerce Department by September 17.