3 min read

RUMFORD — NewPage Corp. officials, employees and Maine’s representatives in Congress were upbeat Friday about the International Trade Commission’s unanimous ruling that the paper industry has been materially harmed by subsidized paper coming into the United States from China and Indonesia.

That means the temporary tariffs put on foreign paper a few months ago will be extended for five years, according to U.S. Rep. Michael Michaud’s office.

Michaud and fellow Democratic Rep. Chellie Pingree, along with Republican Sens. Olympia Snowe and Susan Collins, testified this year about the damage caused to local paper companies because of the underpriced Chinese paper and the unfair trade practices.

Snowe called the decision “significant” and “positive” for not only the paper industry, but for all U.S. manufacturing.

“This decision has widespread implications,” Snow said. “It is important for the United States to be assertive and aggressive. It will prevent further layoffs, closures and loss of (paper) machines.”

Snowe said after the five years are up, the question will be re-examined to determine whether China and Indonesia have responded appropriately.

Advertisement

During the initial ITC vote in September, Local 900 Secretary Ron Hemingway said that since the temporary tariffs were implemented, Chinese and Indonesian imports were reduced by two-thirds.

In the spring, the U.S. Department of Commerce determined that U.S.-made paper was being undercut. Bonds were taken from Chinese paper imports to help level the costs.

With Friday’s Trade Commission decision, those bonds will become cash tariffs, which are expected to begin in mid-November, said James Catella, an aide to Snowe.

During the past year or so, about 100 employees from the local NewPage mill were laid off, largely because of the unfair trade practice. Since the temporary tariffs were imposed, at least 100 people have been called back and some new hiring has taken place.

In addition to subsidized trade practices, the local union and paper industry said the lack of environmental and labor laws in the two countries has also presented unfair advantages.

Asia Pulp and Paper Americas acting President Terry Hunley said in a written statement that the importing organization was very disappointed with the ITC decision. He said evidence shows that the imports had not hurt U.S. producers, and that the APP is considering an appeal of the ITC decision.

Advertisement

In her testimony before the ITC in September, Snowe said more than 6,000 employees working in 20 paper mills in seven states had lost their jobs due to the Chinese and Indonesian paper imports.

The companies involved were NewPage, Appleton Coated LLC and Sappi Fine Paper. They filed unfair trade complaints on Sept. 23, 2009, with the U.S. Department of Commerce and the International Trade Commission.

Michaud, a paper mill worker for many years, worked with the Trade Commission and the U.S. Department of Commerce to try to change what many considered to be an unfair playing field for U.S. workers.

In a statement Friday afternoon, NewPage Corp. President and CEO George Martin said the decision will allow the Commerce Department to impose duties to offset significant levels of paper “dumping” and foreign government subsidies.

“It’s important to remember that we are willing to compete with anyone in the world as long as we have a level playing field,” Martin said.

[email protected]

Comments are no longer available on this story