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Press release
March 14, 2018

Quebec considers the United States’ imposition of preliminary anti-dumping duties on Quebec exports to be unjustified

Papier journal et d'imprimerie

Newsprint and printing paper

QUÉBEC CITY, March 14, 2018 – The Government of Quebec considers the United States Department of Commerce’s (DOC) decision to impose preliminary anti-dumping duties on imports of uncoated groundwood paper from Canada, such as newsprint and printing paper, to be unjustified. The preliminary anti-dumping duty rates that have been announced are as follows:

Canadian paper mills – anti-dumping duties Percentage (%)
Catalyst Paper Corporation 22.16
White Birch Paper Company  0
Resolute Forest Products  0
Other Canadian exporters 22.16

 

These rates are in addition to the preliminary countervailing duties confirmed on January 9, 2018:

Canadian paper mills – countervailing duties Percentage (%)
Resolute Forest Products 4.42
Kruger  9.93
White Birch Paper Company 0.65
Catalyst Paper Corporation 6.09
Other Canadian producers and exporters 6.53

 

Dominique Anglade, Deputy Premier, Minister of Economy, Science and Innovation and Minister responsible for the Digital Strategy, and Luc Blanchette, Minister of Forests, Wildlife and Parks, Minister responsible for the Abitibi Témiscamingue region and Minister responsible for the Nord-du-Québec region, consider these preliminary anti-dumping and countervailing duties to be unreasonable.

Quotes: 

Once again, the Department of Commerce has made an unreasonable and unjustified ruling against Quebec. These preliminary duties are a major threat to the financial health of our industry, as Quebec generates about 50% of Canada’s exports of these types of paper to the United States. Along with the federal government and our partners, we will do all we can to defend our industry and its workers. We will demonstrate to the DOC and, if necessary, to the international bodies such as those provided for by the North American Free Trade Agreement and the World Trade Organization, that these duties are unwarranted.

– Dominique Anglade, Deputy Premier, Minister of Economy, Science and Innovation and Minister responsible for the Digital Strategy

The pulp and paper industry is a strategic sector of our economy and Quebec must maintain its competitiveness. That is why we must take steps to defend and support the companies involved, in collaboration with the federal government. We must do this for the sake of industry workers, their families, communities and the growth of our regions.

– Luc Blanchette, Minister of Forests, Wildlife and Parks, Minister responsible for the Abitibi Témiscamingue region and Minister responsible for the Nord-du-Québec region

Key facts:

  • On August 10, 2017, the US company North Pacific Paper Company (NORPAC) filed a complaint against the Canadian paper industry with the DOC. NORPAC wanted countervailing and anti-dumping duties imposed on uncoated groundwood paper imported from Canada.
  • NORPAC argued that Canadian paper mills receive government support and sell their products in the United States at below-market value. The DOC initiated an investigation on August 30, 2017.
  • The Canadian industry is represented by four companies in the countervailing duty investigation: Resolute Forest Products, Kruger, White Birch Paper Company and Catalyst Paper Corporation. In the anti-dumping investigation, the Canadian industry is represented by three companies: Resolute, White Birch and Catalyst.
  • Final countervailing and anti-dumping determinations are expected on August 2, 2018.
  • The paper mills covered by the NORPAC petition are run by Resolute Forest Products (Alma, Amos, Baie-Comeau, Clermont and Gatineau), Kruger (Bromptonville and Trois-Rivières) and White Birch Paper Company (Gatineau, Québec City and Rivière-du-Loup).
  • Companies subject to export taxes could benefit from loans and loan guarantees under the ESSOR program.
  • Canada is the largest exporter of newsprint in the world. The value of Quebec exports of uncoated groundwood paper to the United States amounts to approximately $1 billion per year.
  • The mandate of Raymond Chrétien, Quebec’s chief negotiator for softwood lumber, has been expanded to include this dispute.

Related links:

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  • For information on the Ministère des Forêts, de la Faune et des Parcs and its activities and accomplishments, visit mffp.gouv.qc.ca and the Ministry’s social media pages.