US paper protection tax won't affect Australians

The US Department of Commerce announced its determination in the ongoing anti-dumping investigation of imported coated free sheet paper, setting rates ranging from 23 to 99 per cent in China; 0 to 30 per cent in South Korea and 10.85 per cent in Indonesia.

American printers are expected to suffer a severe blow by these pricing and supply dynamics. The Printing Industries of America has expressed its concerns and opposed the expansion of the investigation.

"PIA is disappointed to learn of the U.S. Department of Commerce's affirmative preliminary determinations in the ongoing antidumping duty investigations on Coated Free Sheet (CFS) paper imported from China, Indonesia, and Korea. Following the March announcement of affirmative preliminary determinations of tariffs in the concurrent Countervailing Duties investigation, this is yet one more blow to domestic printers sure to be impacted by pricing and supply dynamics of the CFS paper market," said Michael Makin, presiden and ceo of Printing Industries of America.

"PIA is a strong supporter of free and fair trade both at home and globally. As such, we believe that striking an appropriate balance between protecting the domestic producer and the end-user of an internationally traded product is critical. We hope that the full anti-dumping and countervailing duty investigations weigh seriously the impact of the printing industry as it considers the economic ramifications of imposing tariffs on foreign sources of CFS paper, and that it determines such penalties are unwarranted."

But Australian printers need not worry about a similar outbreak here, according to Hagop Tchamkertenian, national policy and research manager, Printing Industries, Australia.

"Such an event is highly unlikely given the Australian government's commitment to trade liberalisation and free trade. The only event that may lead to special duties being placed on imported paper may be in the context of a desire by the Australian government to help improve environmental outcomes.

'In the unlikely event of such a duty being introduced on imported paper, it will have a detrimental impact on the Australian printing industry as it would raise the cost of an essential raw material. Such a duty will also make Australian printers less internationally competitive since imported paper has a high domestic market share," he said.

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