APP Americas Previews Testimony for Hearing on the Coated Paper Trade Case
• Domestic prices remained low in the first half of 2010 because of the above cited economic and intra-industry domestic producer competition, even though coated paper sheets imported from China and Indonesia left the market because of preliminary duties imposed by the U.S. Department of Commerce.
• There is no evidence that there will be an imminent increase in subject imports that will threaten the domestic industry with future material harm.
- Import volumes were very stable from 2007 to 2009 and have dropped since.
- Chinese suppliers lost major U.S. accounts before the petition was filed and replacing that volume will be difficult.
- More than 90 percent of subject shipments from China and Indonesia during the case investigation period (2007-2009) went to markets other than the United States.
- Chinese and Indonesian producers do not have significant excess capacity.
- The rapidly growing Chinese market will absorb a substantial portion of future increased production.
- As subject imports did not affect domestic prices levels in the past, there is no basis to assume they will in the future.
- The largest subject importers cannot meet growing demands for certain environmental and sustainability standards, particularly those of the Forest Stewardship Council, thus limiting their U.S. market growth potential.
- Historical patterns indicate that any increases in subject imports will displace nonsubject imports in a direct and complete import substitution pattern.
Note: USITC is scheduled to vote on this case on October 19. Only an affirmative decision that the domestic industry has been harmed by the subject imports would lead to the imposition of a duty order.