Catalyst Paper Port Alberni mill. Photo courtesy Catalyst Paper.
The Canadian forestry industry has been hit with more duties as the American government says B.C. company Catalyst Paper was dumping products at a rate of more than 20 per cent.
Catalyst has B.C. mills in Port Alberni, Crofton and Powell River.
The anti-dumping duties apply to Canadian newsprint and the U.S. Department of Commerce says a preliminary investigation found Canadian exporters underpriced uncoated groundwood paper from zero to 22 per cent.
The department said Catalyst was selling newsprint south of the border by as much as 22.16 per cent less than fair market value.
U.S. Customs and Border Protection has been instructed to collect cash from Canadian newsprint importers based on those rates.
Washington-based North Pacific Paper Company (NPPC) started a petition to impose tariffs, saying Canada was dumping newsprint into the U.S. market and unfairly subsidizing its industry at home.
The American government mentioned the maximum 22.16 per cent rate is lower than the 54.97 per cent rate that was claimed by NPPC.
Producers Resolute Forest Products and White Birch were both found to have zero per cent dumping rates.
The Canadian forestry industry was handed American duties in December when the U.S. International Trade Commission upheld tariffs on softwood lumber.
It said subsidized lumber was imported from Canada that was harming the U.S. industry.
Canada responded in January with a complaint to the World Trade Organization about how the U.S. has applied tariffs to softwood lumber.
With files from the Canadian Press.
Andy Neal
