Global Geopolitical Series: U.S. Commerce department imposes affirmative preliminary CVD on uncoated ground wood paper from Canada

U.S. commerce department decided to impose countervailing duties (CVD) on imports of uncoated groundwood paper from Canada accusing the country of subsidizing those products. In a statement released on the commerce department website, U.S. Commerce Secretary Wilbur Ross has confirmed the affirmative preliminary determination in the countervailing duty (CVD) investigation, finding that exporters of uncoated groundwood paper from Canada received countervailable subsidies ranging from 4.42 to 9.93 percent. According to the statement, the U.S. commerce department will instruct U.S. Customs and Border Protection Agency to collect cash deposits from importers of uncoated groundwood paper from Canada.

In 2016, imports of tool chests and cabinets from China were valued at an estimated $1.27 billion.

Mr. Ross said, “Today’s preliminary decision allows U.S. producers to receive relief from the market-distorting effects of potential government subsidies while taking into account the need to keep groundwood paper prices affordable for domestic consumers…..The Department of Commerce will continue to evaluate and verify the accuracy of this preliminary determination while standing up for the American business and worker.”

The decision came in response to a petition filed by North Pacific Paper Company.

Since becoming President, Trump has instructed his team to take up the issue of trade balance and dumping of foreign products seriously. From January 20, 2017, through January 9, 2018, Commerce has initiated 82 antidumping and countervailing duty investigations, a 58 percent increase from the previous year.

CVD laws provide U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair subsidization of imports into the United States.  The Commerce Department currently maintains 418 antidumping and CVD orders which provide relief to American companies and industries impacted by unfair trade. President Trump has also initiated an investigation into China’s IPO laws that lead to the theft of United States’ intellectual properties.