U.S. Coated Paper Industry Files Major Unfair Trade Cases Against China and Indonesia
The petitions allege that various subsidies are being provided to Chinese paper producers, including low interest loans, tax subsidies, input subsidies, land use programs, grants, export tax subsidies and the pervasive undervaluation of China’s currency. Similarly, the petitions allege that Indonesian paper companies are benefiting from timber provided from government-owned land at below-market prices, a ban on log exports, government loans, debt forgiveness, and tax incentives for certain encouraged businesses.
“This case is not about protectionism—it’s about fair trade,” stated Rick Willett, president and chief executive officer of NewPage Corp.. “Domestic manufacturers enjoy numerous cost advantages over their Chinese and Indonesian competitors for paper used in our domestic marketplace, including abundant, well managed forest resources, energy and raw materials, as well as lower transportation and logistics costs. In addition, we continue to invest in modern technology, well-maintained assets and our world-class work force. We are not afraid to compete with anyone on a level playing field.”
“The domestic paper industry producing certain coated paper covered by these petitions has been significantly harmed by unfair trade practices,” said John Cappy, president and chief executive officer of Appleton Coated LLC. “It is important that we offset the dumping and subsidies which are benefiting the Chinese and Indonesian paper companies at the cost of American manufacturing jobs. The domestic paper industry cannot afford to continue to lose more market share, more profits and more jobs to unfair competition.”
The domestic industry has experienced substantial capacity reduction and under-utilization resulting in the loss of thousands of jobs. The petitions show that unfairly traded imports from China and Indonesia are a significant contributor to that underutilization of capacity and resultant job loss.
About Appleton Coated
Appleton Coated, headquartered in Kimberly, WI, provides focused market leadership in premium coated and specialty paper products. The Appleton Coated product portfolio includes a range of commercial printing and book publishing papers marketed under the Utopia brand as well as specialty and private label products. Known for their performance, aesthetics, and environmental attributes, Appleton Coated manufactures their products in a state-of-the-art facility in Combined Locks, Wisconsin, hosting the newest paper machine in North America. For more information please visit our website at www.appletoncoated.com.