The U.S. International Trade Commission announced Thursday it is overturning duties imposed on Canadian newsprint producers earlier this year by the U.S. Department of Commerce, saying uncoated paper coming in from Canada is not hurting the U.S. industry.
Any newsprint-related duties collected by the U.S. since January 16 will be refunded to the producers who paid them.
The commerce department had imposed antidumping duties of around 22 per cent on Canadian newsprint in March and countervailing costs ranging from 0.82 per cent to 9.81 per cent for all Canadian producers. At the beginning of August, the U.S. reduced the duties slightly.
“The USITC today determined that a U.S. industry is not materially injured or threatened with material injury by reason of imports of uncoated groundwood paper from Canada that the U.S. Department of Commerce has determined are subsidized and sold in the United States at less than fair value,” the USITC said in a news release.
“As a result of the USITC’s negative determinations, no antidumping or countervailing duty orders will be issued on imports of this product from Canada.”
The only B.C. company that has been affected by the U.S.’s actions was Richmond’s Catalyst Paper, which was initially faced with duties of 22.16 per cent. When duties were reduced earlier this month, Catalyst’s hit inched down to 20.26 per cent. At the time, B.C. Minister of Jobs, Trade and Technology Bruce Ralston said the province was frustrated with the “unwarranted punitive duties,” as it had been clearly shown that B.C. was not subsidizing Catalyst.
Premier John Horgan said the USITC made the right decision based on the evidence it received.
"People who work at Catalyst on Vancouver Island, in Powell River and in Metro Vancouver can breathe more easily today," Horgan said.
"Today's ruling means that Catalyst will no longer have to pay these debilitating, unfair duties."
The duties were a result of an allegation last year by North Pacific Paper Company, which is based in Washington State. That company had filed a petition that alleged Canadian newsprint had been unfairly subsidized, with dumping margins between 23.45 per cent and 54.97 per cent.
"Although this case is now over and the duties will be refunded, the damage it has inflicted on Catalyst and other Canadian producers is disturbing," Horgan said.
- With files from Hayley Woodin and Nelson Bennett
