Allentown, Pa. - U.S. Senator Pat Toomey (R-Pa.) released the following statement regarding the U.S. International Trade Commission (ITC)'s unanimous ruling that imported Canadian newsprint does not economically "injure" US industry.
"American companies must be allowed to adequately and fairly source materials, especially when those items are not produced in sufficient quantities domestically," said Senator Toomey. "As such, I'm pleased to see the ITC has unanimously ruled against the administration's harmful tax on newsprint imported from Canada. An unnecessary tax on newsprint could have been a death knell for many jobs in the newspaper and publishing industries, both of which are already facing significant challenges. The ITC's ruling to end this financial burden on publishers across Pennsylvania is the right one."
In August 2017, the Commerce Department and ITC began an antidumping investigation of uncoated groundwood paper from Canada in response to the concerns of one domestic paper manufacturer. Commerce then made a positive determination that forced American newspapers and publishers that purchase Canadian UGW paper to pay duties of up to 32 percent. The U.S. is a net importer of UGW paper, so it relies on imports to satisfy demand.
In May 2018, Senator Toomey cosponsored the bipartisan Protecting Rational Incentives in Newsprint Trade Act of 2018 (PRINT Act). The PRINT Act calls on the U.S. Department of Commerce to suspend the collection of duties and to conduct a study into the economic health of the U.S. newspaper and publishing industries. Following the completion of the study, the president would be required to review the study and certify that such a tax on imported UGW paper is in the best interest of the country.
On August 29, 2018, the ITC voted unanimously that UGW paper from Canada does not injure US industry, eliminating the preliminary duties imposed on UGW.