print this page

U.S. Commerce Anti-Subsidy Duty on Thermal Paper China Imports ‘Strong Trade Law Enforcement’ for Paper Production Jobs in Wis., Ohio and Pa.

For Immediate Release                                              March 11, 2008

Washington, D.C. (Mar. 11) -- The United Steelworkers (USW) welcomed the U.S. Department of Commerce’s decision announced yesterday to impose preliminary countervailing duties on government subsidized imports of lightweight thermal paper (LWTP) from China in a trade case filed by Appleton Papers, Inc. that could affect 1,780 paper workers in Wisconsin, Ohio and Pennsylvania. 

USW International President Leo W. Gerard said, “It’s essential for the U.S. to hold the Chinese communist government accountable when it cheats on world trade rules by illegally subsidizing its industries – in this case harming the only two American producers of thermal paper. Until we level the playing field through strong trade law enforcement, China will keep cheating and keep stealing American jobs.”

Yesterday’s determination will apply duties on thermal paper from certain Chinese producers and exporters ranging from 5.68% to 59.5%, with one producer receiving a duty of less than one percent.

Rick Bahr, USW Local 2-469 representing about 900 workers at the Appleton mill in Wisconsin, declared, “We expect our government to stand up and fight back for American paper workers’ jobs and send a message to China that they can no longer violate the fair trade laws agreed to after joining the World Trade Organization (WTO).”

He adds, “The future job security of our mill and those at the other Appleton paper plants in Ohio and Pennsylvania will depend on the remaining U.S. investigation process and rulings that uphold the Commerce Dept.’s findings.”

Another producer of LWTP, Kanzaki Specialty Papers Co. in Springfield, Ma., has 115 workers represented by USW Local 708, who will also be helped by the ruling.  

According to trade lawyers handling the petition filed by the company last September with the Commerce Dept. and the U.S. International Trade Commission (ITC), U.S. Customs and Border Protection will begin to collect a cash deposit or bond from importers of thermal paper – subject to the investigations. The final determination of the Commerce Dept. is expected on or about Jul. 21, and if upheld, the ITC’s final ruling is scheduled for September.

Foreign governments subsidize industries when they provide financial or other assistance to benefit the production, manufacture or exportation of goods. Subsidies can take many forms, such as direct cash payments, preferential tax breaks, loans and subsidized inputs.

A separate dumping case against thermal paper imports from China and Germany is also scheduled for a ruling on or about May 6, 2008. Any duties imposed in the dumping case on China would be in addition to the duties imposed in the anti-subsidy case. In 2007, imports of thermal paper from China were valued at an estimated $53.3 million.

Lightweight thermal paper products are used for point-of-sale retail receipts and coupons. The USW represents other Appleton thermal paper processing mills employing 330 workers in West Carrolton, Ohio, and 550 workers at Roaring Spring, Pa. The Ohio plant’s USW Local 1-266 President Jim Allen and USW Local 10-0422 President Mitchell Becker at Roaring Spring – both confirm the company’s trade case, if upheld – will benefit the job security of all production workers.

Earlier this month, a letter supporting the thermal paper trade case was transmitted to U.S. Commerce Secretary Carlos M. Gutierrez by U.S. Senators Herbert Kohl (D-WI); Russ Feingold (D-WI); Sherrod Brown (D-OH) and Robert Casey, Jr. (D-PA). They wrote: “To the extent that you find imports in this case are being traded unfairly, we encourage you to take a firm hand to continue to protect U.S. jobs and investment.”

Contact:  Gary Hubbard, 202-778-4384; 202-256-8125

# # #

 For More Information U.S. Commerce Dept. International Trade Administration Fact Sheet