US panel nixes tariffs on newsprint

WASHINGTON, D.C.: A US trade panel on Wednesday (Thursday in Manila) rejected the Trump administration tariffs imposed on Canadian newsprint imports that drew sharp protests because of their impact on struggling American newspapers.

The International Trade Commission ( ITC), a quasi- judicial panel that reviews tariff measures, said in a statement that newsprint or “uncoated groundwood paper” imported from Canada “does not injure US industry.”

The unanimous decision, which is subject to appeal, means the preliminary tariffs of up to 30 percent imposed earlier this year by the Commerce Department are canceled and money collected will be refunded.

The tariffs were imposed in response to a complaint by a single US paper mill, which alleged that subsidized imports from Canada hurt American industry.

But the US paper industry’s trade organization failed to back the complaint, and the tariffs drew sharp criticism from newspaper publishers, lawmakers and others.

David Chavern, president and chief executive of the News Media Alliance that includes some 2,000 news organizations, welcomed the ITC decision.

“We have emphasized that the decades-long shift of news and information from print to digital platforms -- not imports from Canada -- is the cause of the decline in demand for newsprint,” Chavern said in a statement.

“Unfortunately, the damage to newspapers from preliminary tariffs imposed by the Department of Commerce since January has already been done. The tariffs have disrupted the newsprint market, increasing newsprint costs by nearly 30 percent and forcing many newspapers to reduce their print distribution and cut staff.”

The tariffs were opposed by a broad coalition that included media groups, retailers and printing industries.

“From the start, we knew this tax on newsprint would immediately harm commercial printing companies, book printers, service companies, equipment suppliers and ultimately, consumers,” said Michael Makin, president and CEO of Printing Industries of America.

“After analyzing the facts, the ITC has issued the right decision to protect American jobs across the country.”

Analysts have said the tariffs added to the woes of traditional newspapers, especially in small communities, where newsprint is one of the highest costs after payrolls.

“We hope today’s reversal of these newsprint tariffs will restore stability to the market and that publishers will see a full and quick recovery. Our democracy depends on it,” the Texas Press Association said in a tweet.

Newspaper industry employment in the US fell from more than 400,000 in 2001 to 173,000 in 2016, according to government data, highlighting the troubles faced by the shift to digital.

The decision comes amid broader US- Canada trade tensions and negotiations aimed at replacing the North American Free Trade Agreement that includes the two countries and Mexico.

The tariffs were imposed following a complaint from private

in Washington state, which contended that unfairly subsidized imports take away US jobs.

The company said it had restarted at least one mill and hired 60 employees who had been laid off after the tariffs.

Earlier this month, the Department of Commerce revised down its preliminary tariffs after a review. The antidumping duty dropped from a maximum of 22.16 percent to 16.88 percent and countervailing subsidy tariffs from a maximum of 9.93 percent to 9.81 percent.

In 2017, imports from Canada were valued at an estimated $1.21 billion, according to the Commerce Department.

At a hearing in July, US lawmakers joined newspaper industry representatives in criticizing the tariffs which were ordered by US Commerce Secretary Wilbur Ross.

“Given attacks on the #FreePress, the Trump/ Ross newsprint tariffs were the last thing we needed,” tweeted Senator Tom Udall of New Mexico after Wednesday’s ruling.

“I’m relieved # USITC overturned these tariffs, which would have had a devastating impact on the #NM local papers already facing so many economic barriers.”

Senator Chuck Schumer wrote on Twitter that the tariffs “were extremely harmful to our regional papers & printers.”

“The ITC made exactly the right decision to completely

to make sure that they never return,” he added.