The Canadian Press
WASHINGTON — The United States government has given most Canadian newsprint producers a reprieve by lowering final anti-dumping and countervailing duties in its final determination issued Thursday.
The move comes after several American businesses complained the tax on Canadian newsprint would threaten the already-struggling American newspaper industry.
The total tariff for Catalyst Paper Corp. decreased to 20.26 per cent from 28.25 per cent imposed earlier in the year during the preliminary phase.
The B.C.-based company's anti-dumping rate was decreased to 16.88 per cent from 22.16, and its countervailing duty (CVD) rate was lowered to 3.38 per cent from 6.09 per cent.
Commerce Secretary Wilbur Ross says no other Canadian uncoated groundwood producer, a category that includes newsprint and book grade paper, will have to pay anti-dumping tariffs because of the unique facts of the department's investigation and arguments made by interested parties.
The rate of Montreal-based Kruger, which owns Corner Brook Pulp and Paper Ltd., CVD was lowered slightly to 9.53 per cent but the final rates for Resolute Forest Products, White Birch Paper and other Canadian producers increased.
Resolute's countervailing tariff increased to 9.81 per cent from 4.42 per cent, White Birch was .82 from .65 per cent and all others has risen to 8.54 per cent from 6.53 per cent.
The U.S. says US$1.21 billion worth of uncoated groundwood paper was imported from Canada last year.
The Trump administration began investigating Canada's newsprint industry after Washington-based North Pacific Paper Co., complained Canada was dumping newsprint into the American market and unfairly subsidizing its industry at home.
It is the same argument made regarding Canada's softwood industry, which led to the imposition of both countervailing and anti-dumping duties on most Canadian softwood exports to the United States.
The U.S. International Trade Commission is slated to decide in mid-September whether the American complainant suffered harm.