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September 23, 2010

Feds support tariffs on imported paper

By The Mainebiz News Staff

In an apparent reversal, the U.S. Commerce Department has ruled in favor of American paper companies, including two operating in Maine, in unfair trade petitions related to imported paper from China and Indonesia.

The Commerce Department yesterday released its final decision on tariffs proposed for coated paper imported from the two countries, despite its decision earlier this month not to investigate whether China unfairly subsidizes its paper manufacturers, according to a press release. The department approved anti-dumping tariffs of 20.13% on Indonesian imported paper and as much as 135.8% on Chinese paper. In addition, duties of 17.9% would be levied against paper from Indonesia and as much as 178% on paper from China. The International Trade Commission still must give final approval to the tariffs, and is expected to vote on the matter Oct. 19.

The decision is the latest in a petition filed last September by Wisconsin-based Appleton Coated LLC, NewPage Corp., which operates at mill in Rumford, and Sappi Fine Paper North America, which has mills in Skowhegan and Westbrook. The three paper companies, along with the United Steelworkers union, argued that paper from China and Indonesia was being dumped into the U.S. market for less than it costs to manufacture, hurting domestic paper companies and resulting in layoffs.

Following the Commerce Department's ruling against an investigation earlier this month, company officials as well as members of Maine's congressional delegation urged the International Trade Commission to support the tariffs.

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