NewsAlert: Canada launches global trade complaint vs United States over use of duties

NewsAlert: Canada launches global trade complaint vs United States over use of duties

About 80 per cent of newsprint is sold directly to newspaper publishers, Norpac estimates.

"And we know as a manufacturer of this product that if demand continues to go down over time this has an impact on our ability to operate facilities".

Catalyst faces countervailing duties of 6.1 per cent on its USA shipments.

Resolute faces a preliminary duty of 4.42% while the Catalyst Paper duty is 6.09%.

The tariff is as high as 9.93 per cent for Kruger Inc., which is based in Quebec.

It's the third time the United States has slapped duties on Resolute.

The disputes over paper, lumber and aerospace are occurring just as the countries prepare to meet in Montreal later this month for a potentially pivotal round of NAFTA negotiations. The countervailing newsprint duty is expected to result in another $45 million a year in deposits.

The US Department of Commerce will make another decision on anti-dumping duties in March and the US International Trade Commission will be asked to rule on the two measures in August.

Canada has launched a wide-ranging attack against US trade practices in a broad global complaint over American use of punitive duties.

Following a period of tension over possibly having more taxes imposed by Canada's neighbours to the south, the U.S. Department of Commerce slapped on preliminary countervailing duties up to 9.93 per cent on Tuesday for uncoated groundwood paper (newsprint) imported from Canada.

The viability of local newspapers, including the one that you are reading now, is being challenged by an unnecessary tariff on the import of uncoated groundwood paper from Canada - the type that is used to print this newspaper and others across Ohio. "This decision will protect American jobs in Washington, Mississippi and Georgia, and may even serve to create jobs in the idled paper machines restart", Norpac chief executive officer Craig Anneberg said in a statement Tuesday night.

Anneberg told The Daily News that it's too early to say how the duties will affect the company's paper mill in Longview.

The company was acquired in late 2016 by One Rock Capital Partners, a New York-based hedge fund.

Kursman said Norpac was alone in its challenge because production margins are "razor thin".

Foreign Affairs Minister Chrystia Freeland and Natural Resources Minister Jim Carr called the duty rates "unjustified" in a joint statement.

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 USA newspapers in thousands of small cities and towns".

"We will continue to work with our forest industry, provinces and territories, and communities across Canada to defend this vital sector against unfair and unwarranted U.S. trade measures and practices".

Canada has launched a wide-ranging complaint against the United States over its trade practices. Commerce now maintains 418 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.

The News Media Alliance, which represents more than 1,100 newspapers nationwide, sent a December 4 letter addressed to Commerce Secretary Wilbur Ross urging the agency to closely scrutinize Norpac's requests.

Forest Products Association of Canada (FPAC) described the duties as "completely unjustified and protectionist in nature".

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