Catalyst Paper faces ‘punitive’ 20.26 per cent U.S. tariff

Forest company disapointed with decision

  • Aug. 3, 2018 9:17 a.m.

Catalyst Paper, which owns three pulp and paper mills on Vancouver Island, is disappointed with American tariffs on its products announced on Aug. 2.

The U.S. Department of Commerce’s final determination sets Catalyst’s countervailing duty rate at 3.38 per cent, and anti-dumping duty rate at 16.88 per cent on its exports of uncoated groundwood paper to the U.S., along with other Canadian producers.

While the duties were reduced from the preliminary rates, the combined duties on Catalyst’s exports total a significant 20.26 per cent.

The U.S. Department of Commerce’s final determination follows its announcement on Jan. 9 that required Catalyst to pay a 6.09 per cent countervailing duty deposit, and its decision on March 14 to impose a 22.16 per cent anti-dumping duty deposit.

“While not surprised, we’re disappointed with the U.S. Department of Commerce’s decision to keep these unwarranted duties in place, albeit at a lower rate,” says Ned Dwyer, Catalyst’s president and CEO.

“These duties are punitive and without merit. The allegation that we are subsidized and engage in dumping activities is wrong and does not adhere to the facts.”

RELATED ARTICLE: CATALYST DISAPPOINTED WITH ANTI-DUMPING DUTY

Dwyer said the U.S. trade action directly affects the competitiveness of Catalyst, which sells much of its products to American markets.

“While our mills have provided newsprint to the U.S. for more than 100 years, we’re now changing our customer base to minimize the impact of these duties because of one U.S. mill, but this isn’t sustainable over the long-term,” he said.

Fearing the impacts of the tariffs on Catalyst’s operations, the province decided to act last month to ensure the company’s pension plans are protected.

RELATED ARTICLE: PROVINCE STEPS IN TO PROTECT CATALYST’S PENSION PLAN

Following the decision by the U.S. Department of Commerce, the U.S. International Trade Commission will consider whether imports of uncoated groundwood paper from Canada have injured the U.S. industry, as was alleged in the petition by only one mill, North Pacific Paper Company, located in Longview, Washington.

If the ITC reaches an affirmative determination at the end of August, the DOC is expected to issue a final order on the case in mid- September.

“We would like to see the ITC pursue an objective evaluation of the facts and eliminate these egregious duties before they do further harm to our U.S. customers,” Dwyer said.

Bruce Ralston, Minister of Jobs, Trade and Technology, said B.C. is very frustrated and concerned about the continued effect these unwarranted punitive duties will have on B.C.’s forest sector and on the families in communities across B.C. whose livelihoods rely on it.

“These unfair U.S. duties, while lower than the preliminary duties of 28.25 per cent, are affecting companies like Catalyst that support about 6,500 jobs in the province,” he said.

“We are committed to fighting for workers, industry and our communities, and to maintaining B.C.’s strong exports of pulp and paper. Our government and the Government of Canada have repeatedly raised this issue with our U.S. counterparts in hopes that common sense will prevail. Although these duties have been confirmed by the Department of Commerce, we know there has been an unprecedented level of opposition from across the U.S. political spectrum and industry.”

Ralston said the B.C. government urges the International Trade Commission to do what is right and determine that the U.S. industry has not been injured, and overturn the decision.

“Should the ITC ignore all evidence before it and find that U.S. industry has been injured in this case, we will work with the Government of Canada to pursue all appeals,” he said.

In 2015, Catalyst was saddled with a countervailing duties rate of 18.85 per cent when the U.S. imposed tariffs on imports of supercalendered paper from Canada, and paid more than $18 million in duties and legal costs before the countervailing duties on the company were suspended.



robert.barron@cowichanvalleycitizen.com

Like us on Facebook and follow us on Twitter

Just Posted

South Surrey church members ‘praying for accused mother… for the whole process’

Lisa Batstone’s second-degree murder trial continues this week in B.C. Supreme Court

City will ask Fraser Health to remove pay parking at SMH, Surrey councillor says

Surrey’s new council has already made parking free on neighbouring city streets

Health and Technology District breaks ground on new building

City Centre 3 is the third of eight planned buildings: Lark Group

Spawning salmon returning to North Delta’s Cougar Creek

It’s early in the season, but the streamkeepers are hopeful it could be a good year for returns

Surrey White Rock Ringette Association ‘excited’ about world championships coming to Lower Mainland

Ringette Canada says the sport has reached record registration numbers

Winter weather hits parts of Canada

As some parts of the country brace for cold, parts of B.C. remain warmer than 10 C

Giants serve up major defeat to Pats at Langley Events Centre

On the ice, Vancouver G-Men wrap up home stand with a 10-4 win over Regina Friday night.

Canada’s health system commendable overall but barriers to care remain: UN

The United Nations says Canada’s health care system is “commendable” overall but vulnerable groups still face barriers to quality care.

Unique technology gives children with special needs more independent play

UVic’s CanAssist refined seven prototypes aided by $1.5M government contribution

Kelly Ellard’s boyfriend has statutory release revoked

Darwin Duane Dorozan had several parole infractions that found him ‘unmanageable’

New chair of Metro Vancouver board is Burnaby councillor

The 40-person board is made up of elected officials from 21 cities and one First Nation

Doctor’s note shouldn’t be required to prove you’re sick: poll

70% of Canadians oppose allowing employers to make you get a sick note

German-born B.C. man warns against a ‘yes’ vote on proportional representation

Agassiz realtor Freddy Marks says PR in his home country shows party elites can never be voted out

Fashion Fridays: 5 coats you need this winter!

Kim XO, lets you know the best online shopping tips during Fashion Fridays on the Black Press Media Network

Most Read