Trade commission reverses newsprint tariffs

The United States International Trade Commission (USITC) unanimously reversed tariffs placed on newsprint from Canada last week, ruling that US industry is not being harmed by the imports.

The August 29 ruling was seen as a victory for newspapers and other printers that use uncoated groundwood paper.

“We are immensely gratified today by the International Trade Commission’s vote not to impose permanent tariffs upon the North American newsprint supply,” said National Newspaper Association President Susan Rowell, publisher of the Lancaster (SC) News. “The paper markets serving community newspapers can soon begin to move back to market pricing without the heavy hand of government imposing taxes upon the primary suppliers of newsprint.”

In response to the tariffs, US Rep. Mac Thornberry (R-Clarendon) was one of 38 members of Congress to co-sponsor the Protecting Rational Incentives in Newsprint Trade Act of 2018 also known as the PRINT Act, which would have suspended the duties pending a study of the effects on the printing industry. Thirty-three members of the US Senate co-sponsored a companion bill in that house.

“The USITC’s action last week was a great relief, and community newspapers across America are very grateful to Congressman Thornberry and his colleagues for their efforts to protect these jobs,” Clarendon Enterprise publisher Roger Estlack. “Mac’s efforts combined with a major push back from across the country helped stop what was becoming an enormous burden and threat to the local newspapers.”

Newsprint users experienced price increases and a disruption in supply after duties were assessed earlier this year following a complaint by one paper mill, North Pacific Paper Company. The import tariffs – as high as 32 percent – jeopardized the viability of the industry and threatened more than 600,000 US workers in publishing, printing and related industries.

The Texas Press Association had been lobbying against the tariff for almost a year. The association joined a coalition led by News Media Alliance and National Newspaper Association.

“We are delighted at the outcome,” said TPA Executive Director Mike Hodges. “The International Trade Commission clearly saw what our industry has been saying all along – that the case for a tariff was groundless and that American newspapers would be in grave danger if a tariff were made permanent. Our members’ involvement with the Texas Congressional delegation was crucial in our efforts to defeat the tariff and we deeply appreciate their hard work.”

All five USITC commissioners voted against the tariffs and officially determined that US industry is not materially injured or threatened with material injury by reason of imports of uncoated groundwood paper from Canada.

“We will not know until mid-September the commission’s rationale for its vote of 5-0 against continuing newsprint tariffs,” Rowell said.

“We understand it will take a couple of months for the preliminary tariffs to be unwound and credits to be issued back to those companies who had paid duties at the border since last January. But it is an enormous relief to know that the ITC does not find a basis for continuing sanctions.”