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

Forest company disapointed with decision

  • Aug. 3, 2018 10:17 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

Snow expect in East Kootenay over next 72 hours

Mainroad, the contractor for East Kootenay highways has issued a weather statement… Continue reading

Another two win weekend for the Kimberley Dynamiters

JOSH LOCKHART The Kimberley Dynamiters hosted top teams from the Neil Murdoch… Continue reading

Local authors at the 7th annual Kootenay Book Fair

Eight local area authors were on hand at the Seventh Annual Kootenay… Continue reading

Healthy Kimberley granted ‘Charitable Donation Society’ status

The volunteer-led group is now able to accept charitable donations.

League responds to Kootenay ICE rumour

Contrary to reports out of Winnipeg, no announcement is coming Monday, says WHL

VIDEO: This B.C. school leads country in vaccine donations to UNICEF

Federally funded Kids Boost Immunity uses quizzes to earn vaccinations

Break-in at home of detained Chinese Huawei executive

Meng Wanzhou was detained in Vancouver on America’s request

Natural gas rates will go up in B.C. on Jan. 1

Regions could pay up to $68 more

Top House Dems raise prospect of impeachment, jail for Trump

It could be an “impeachable offense” if it’s proven that President Donald Trump directed illegal hush-money payments to women during the 2016 campaign.

Macron addresses France amid protests; is it too late?

Paris monuments reopened, cleanup workers cleared debris and shop owners tried to put the city on its feet again Sunday.

CUPE calls off Flair Airlines job action citing job security concerns

The union says it’s going to challenge Flair’s move at the Canada Industrial Relations Board before proceeding with any job action.

Trump looking at several candidates for new chief of staff

Trump’s top pick for the job, Nick Ayers, is out of the running and Trump is now soliciting input on at least four individuals.

Canadian physicist collects Nobel Prize

Canada’s Donna Strickland is one of three winners of this year’s Nobel Prize for Physics.

BCHL players help Team Canada in shootout win over U.S.

Massimo Rizzo scores the shootout winner at World Junior A Challenge

Most Read