Executive Council
August 29, 2018

Premier Ball Welcomes Decision to Eliminate Tariffs on Corner Brook Pulp and Paper

The Honourable Dwight Ball, Premier of Newfoundland and Labrador, welcomes the decision of the International Trade Commission to eliminate the tariffs imposed on Corner Brook Pulp and Paper. The decision is a major win for the province, Corner Brook Pulp and Paper, and the forestry industry, which is a significant economic generator in communities throughout Newfoundland and Labrador.

The decision follows months of advocacy led by Premier Ball who highlighted the importance of the United States-Newfoundland and Labrador trade relationship and the unjustified tariffs in discussions with Kelly Craft, the United States Ambassador to Canada, Prime Minister Trudeau, as well as federal ministers and American governors, political and business leaders.

Corner Brook Pulp and Paper employs more than 500 individuals and is at the centre of Newfoundland and Labrador’s integrated forestry industry. The forestry industry is valued at $286.5 million annually and directly and indirectly employs over 5,000 people in pulp and paper, sawmilling, harvesting and value-added industries.

The International Trade Commission, today, in a public vote in Washington, voted unanimously (5-0) that there was no injury to the United States newsprint industry.
Information related to the United States’ anti-dumping and countervailing duty investigation can be found in the enclosed backgrounder.

Quotes
“My government has worked very hard to have these unjustified tariffs eliminated. The International Trade Commission’s decision reflects the value of our approach and is a major win for the company and provincial forestry. In this increasingly volatile global trade environment, we will continue to work collaboratively with Corner Brook Pulp and Paper and the overall forestry industry to identify new markets and business opportunities.”
Honourable Dwight Ball
Premier of Newfoundland and Labrador

“The Way Forward has set us on a path to diversify Newfoundland and Labrador’s forest sector. Corner Brook Pulp and Paper is at the heart of this industry and remains a vital economic force in our province. While we are very pleased that the tariffs have been lifted, we are unwavering in our advocacy for fair trade for the Canadian newsprint industry, and will continue to stand by Corner Brook Pulp and Paper and the forestry industry.”
Honourable Gerry Byrne
Minister of Fisheries and Land Resources

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Learn More
Uncoated Groundwood Paper from Canada Does Not Injure U.S. Industry, Says USITC - www.usitc.gov/press_room/news_release/2018/er0829ll997.htm

Premier Ball Expresses Disappointment with United States Department of Commerce; Stands by Corner Brook Pulp and Paper - www.gov.nl.ca/releases/2018/exec/0109n03.aspx

Premier Ball Concerned with the United States’ Protectionist Actions - gov.nl.ca/releases/2018/exec/0314n02.aspx

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Media contacts
Michelle Cannizzaro
Office of the Premier
709-729-3960
michellecannizzaro@gov.nl.ca

Connie Boland
Fisheries and Land Resources
709-637-2923, 640-6409
connieboland@gov.nl.ca

BACKGROUNDER

United States Department of Commerce’s Anti-Dumping and Countervailing Duty Investigation

An Anti-Dumping and Countervailing Duty Investigation is a domestic process the United States uses to determine whether goods imported from another country are harming its domestic industry. The anti-dumping portion of the investigation focuses on whether a good has been sold in the United States market at lower prices than sold in its domestic market. The countervailing duty portion of the investigation focuses on whether a good has been subsidized by a foreign government.

Chronology
In summer 2017, North Pacific Paper Company filed a complaint to the United States Department of Commerce against producers of uncoated groundwood paper in Canada.

On January 9, the United States Department of Commerce imposed a 9.93 per cent countervailing tariff on Corner Brook Pulp and Paper.

On March 14, the United States Department of Commerce imposed a 22.16 per cent anti-dumping duty on Corner Brook Pulp and Paper.

On August 2, the United States Department of Commerce announced a revised anti-dumping rate for CBPPL of 0 per cent and reduced the countervailing duty to 9.53 per cent.

On August 29, the International Trade Commission voted to overturn the tariffs imposed on Corner Brook Pulp and Paper. The United States International Trade Commission is an independent, bipartisan, quasi-judicial, federal agency of the United States that provides trade expertise to both the legislative and executive branches.

2018 08 29                              1:20 p.m.