U.S. panel overturns duties on Canadian newsprint

The U.S. International Trade Commission has overturned duties imposed on Canadian newsprint by the U.S. Commerce Department earlier this year.

The five commissioners voted unanimously Wednesday that imports from Canada of uncoated groundwood paper, used for newspapers, commercial printing and book publishing, do not injure U.S. industry.

The U.S. Commerce Department had imposed anti-dumping and countervailing duties of various levels on Canadian producers including Resolute Forest Products, Catalyst Paper Corp., Kruger Inc., and White Birch Paper.

The U.S. International Trade Commission’s vote overrules the findings of the Commerce Department.

The vote was welcome news to Montreal-based Resolute, the largest newsprint producer in the world.

“To get a five to zero, unanimous vote finding no injury is just a monumental victory for our efforts,” said company spokesman Seth Kursman.

“I am just thrilled ... it is a great day for the American consumer, it is a great day for freedom of the press.”

The vote comes after U.S. newspapers had campaigned to lift the duties that had pushed a core expense higher and forced layoffs at some papers. The U.S. imported an estimated US$1.21 billion worth of uncoated groundwood paper last year.

David Chavern, CEO of U.S. newspaper industry group News Media Alliance, applauded the ruling.

“The tariffs would have been unsustainable for newspapers, other printers and publishers and printers. Fortunately, our voice was heard at the ITC hearing last month, and they made the right call today in reversing these harmful tariffs,” Chavern said in a statement.

He said the group had emphasized in recent months that it was a decades-long shift from print to digital platforms that is causing a decline in newsprint demand, not imports from Canada.

The duties had come about after Washington-based North Pacific Paper Co., owned by hedge fund One Rock Capital Partners LLC, complained Canada was dumping newsprint into the U.S. market and unfairly subsidizing its industry.

Craig Anneberg, CEO of North Pacific, said in a statement that the company disagrees with the ruling and it will assess its options when the detailed written determination is released in a few weeks.