ITC overturns newsprint tariffs

Kayne Pyatt, Herald Reporter
Posted 8/31/18

Trump administration tariffs on newsprint overturned

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ITC overturns newsprint tariffs

Posted

EVANSTON — Newspapers across the United States celebrated Wednesday after the International Trade Commission (ITC) overturned the tariffs on uncoated groundwood paper imported from Canada.  This paper is used by newspaper publishers across the country and the tariffs have had a devastating effect on small- and medium-sized papers. The tariffs had significantly increased costs for publishers, affecting production and threatening jobs.

According to the National News Association, the tariffs came at the request of North Pacific Paper Corporation (NORPAC), a Washington state mill purchased by One Rock Capital Partners in 2016. NORPAC asked the Commerce Department and the ITC to impose the tariffs. NORPAC’s view was that Canadian suppliers were unfairly subsidized by their government and were dumping paper into the U.S. below fair market value.

In March of 2018, using existing trade laws, NORPAC requested the tariffs and they were applied.  Canadian producers began paying at the border and the money was kept on deposit by the U.S. government awaiting a final determination.

By the middle of September 2018, the reasons ITC voted to stop the tariffs will be known and then the Customs and Border Patrol will stop collecting, and the money held in deposit will be sorted and returned to the producers — a process that could take several months.

NORPAC can appeal the decision but tariffs would not be re-imposed during the appeal process. Also, Pres. Donald Trump could impose tariffs under national security authority but there is no indication he will in this case.

It remains to be seen if Canadian producers will stay with the market or how many have already dropped out. Supply and demand will determine where prices will go. The initial damage was devastating to many small newspapers as the tariffs peaked around 30 percent, though the Commerce Department later capped the highest tariff at around 17 percent. Some newspapers have already folded, many have scaled issues down and jobs were lost or not replaced.

What caused the ITC to overturn the tariffs? The News Media Alliance and Resolute Inc., which supplies much of the U.S. produced newsprint, along with publishers, editors, attorneys, industries, writers and private citizens joined a petition against the tariffs and all contributed to the ruling of ITC against the tariffs.

The National Newspaper Association and the Stop the Tariffs on Printers and Publishers Coalition had given testimony to the ITC regarding the damage to newspapers and argued that any injury to domestic paper companies came from the falling demand for paper not from the import of Canadian uncoated groundwood paper.  

News Media Alliance President and CEO David Chavern released a statement immediately upon hearing of the ITC decision.

“We applaud the International Trade Commission (ITC) for today reaching a final, unanimous negative determination that Canadian imports of uncoated groundwood paper, which includes newsprint, used by newspapers, do not cause material harm to the U.S. paper industry,” the statement reads. “Fortunately, our voice was heard at the ITC hearing last month, and they made the right call today in reversing these harmful tariffs.”

In Wyoming, U.S. Sens. Mike Enzi and John Barrasso and Rep. Liz Cheney all applauded the decision by the ITC to reverse the tariffs. The Wyoming delegation submitted testimony last month to the ITC asking them to end the tariffs after taking into account the devastating effects they could have on local papers. 

Enzi said, “Our local papers play a vital role in the state and shouldn’t have to struggle to survive because of these tariffs that were being pushed by one company.”

“These punishing tariffs have significantly increased costs for publishers, hampered production and threatened good jobs at newspapers across our state,” Barrasso said. “Now that they have been removed, Wyoming’s newspapers can renew their focus on keeping communities informed and up to date.”

Cheney said, “Local newspapers in Wyoming are small businesses that rely on uncoated groundwood paper to provide essential local and national news coverage to communities, sometimes as their only news source.  The ITC made the right decision.”

The Herald asked Wyoming Press Association Executive Director Darcie Hoffland for her response to the ITC decision.

“Today’s decision by the International Trade Commission to reverse the newsprint tariff is a huge victory,” Hoffland said. “The hard work put forth to fight the most critical challenge to our industry of late has been awe-inspiring, and on behalf of the Wyoming Press Association I would like to extend our sincerest thanks to our members, publishers, readers and the Wyoming congressional delegation for their efforts to put a stop to the tariff.”