Catalyst among newsprint producers slapped with U.S. countervailing duties

Catalyst among newsprint producers slapped with U.S. countervailing duties
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Catalyst Paper, with mills in Crofton and Port Alberni, hit with a 6.09 per cent countervailing duty from the United States. Photo courtesy CBC.

Catalyst Paper, with mills in Crofton and Port Alberni, hit with a 6.09 per cent countervailing duty from the United States. Photo courtesy CBC.

The United States announced tariffs Wednesday on 25 Canadian newsprint producers including Catalyst Paper Corp. of B.C.

Catalyst operates mills in Crofton, Port Alberni and Powell River and two others in the United States.

The preliminary duty handed down by the U.S. Department of Commerce is 6.09 per cent for Catalyst.

The tariff is as high as 9.93 per cent for Kruger Inc., which is based in Quebec.

Canada is the largest exporter of newsprint in the world and the duties come after an investigation began in August 2017.

Washington-based North Pacific Paper Co. said Canada was dumping newsprint into the American market with unfair subsidies at home.

Another anti-dumping duty ruling will come in March from the U.S. Department of Commerce.

The U.S. International Trade Commission will rule on the tariffs in the summer.

CANADA LAUNCHES COMPLAINT ON U.S TRADE

Canada has asked the World Trade Organization to examine the trade practices of the United States.

The complaint was released Wednesday after being filed last month.

The tariffs handed down on Canadian newsprint is the latest in a list of penalties imposed by the U.S. alleging unfair practices by Canada.

Duties have already come down on Canadian softwood lumber and Bombardier subsidies.

Canada says the American penalties violate global trade rules and go beyond what is allowed by the WTO.

Foreign Affairs Minister Chrystia Freeland and Natural Resources Minister Jim Carr called the duty rates “unjustified” in a joint statement.

With files from CBC and Canadian Press.

Andy NealAndy Neal

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