Australian Paper accused of dumping uncoated cut-sheets on USA.

In the middle of prosecuting its own anti-dumping case against foreign paper producers, the local manufacturer is named among other producers from China, Brazil, Portugal and Indonesia of exporting unfairly priced imports to the U.S.

Four paper manufacturers – Domtar Corporation, Packaging Corporation of America, Finch Paper, and P.H. Glatfelter  – have joined with the United Steelworkers (USW) union to file anti-dumping petitions with the U.S. Department of Commerce and the U.S. International Trade Commission. They accuse the exporters of selling uncoated paper in sheets, weighing between 40 and 150 gsm, and having a GE brightness level of 85 or higher, at predatory prices.

Australian Paper is the sole producer of uncoated sheets in the country and in the face of intense overseas competition is having to rely on its export market. The level of local competition is the basis of its own anti-dumping petition to the Australian Government.

Kunihiko Kashima, CEO Australian Paper, is looking for a reversal of proof to combat dumping here. He wants the importers, mainly from China, to have to prove the low-priced paper landed here is not dumped, not the other way around.

When questioned about the US claim the company responded by saying it was aware Australian Paper has been included in a much broader petition and we are currently preparing our response.

According to the US antidumping petition, products from the five targeted countries increased 44 percent from 2011 to 2013 and another 40 percent from January-September 2013 to January-September 2014. The imports increased despite declining U.S. demand. During that time, shipments of certain uncoated paper from US manufacturers declined by 8 percent from 2011 to 2013, and another 9 percent from January-September 2013 to January-September 2014.

"Since 2011, eight U.S. mills that produce uncoated paper have been forced to close in the face of increasing unfairly traded imports, resulting in the loss of thousands of paper jobs," said Leo W. Gerard, USW International President. "The Labor Department has certified workers at seven of these mills to receive Trade Adjustment Assistance, after concluding that imports 'contributed significantly' to these closures. Foreign predatory practices targeting America's producers and workers, including tens of thousands of our members, are the root cause of production declines and job losses."

"Competition makes us a better, stronger company, but it must be fair competition," said John D. Williams, President and CEO of Domtar. "This petition asks the government to look at the facts and make any adjustments required to establish a level playing field."

"Foreign paper manufacturers are taking advantage of the unfair trade practices of dumping and subsidies to undermine U.S. manufacturers," said Mark Kowlzan, CEO Packaging Corporation of America.

Under the antidumping and countervailing duty statutes, the ITC is expected to make a preliminary injury determination in early March 2015. The Department of Commerce is expected to issue preliminary determinations in April 2015 and in the antidumping duty investigations in June 2015. All of the investigations will be completed within 13 to 14 months.