The United States Department of Commerce has slapped an anti-dumping duty of 22.16 per cent on Kruger Inc., which owns Corner Brook Pulp and Paper.
The new duty is on top of a preliminary 9.93 per cent countervailing duty that was imposed on the company in January. The anti-dumping duties come into force five days from now.
In August 2017, the United States Department of Commerce launched an anti-dumping and countervailing duty investigation into Canada’s groundwood paper industry, which includes a range of goods including standard newsprint, high bright newsprint, book publishing, directory, and printing and writing papers. Their investigation focused on Resolute Paper Company in Quebec, Catalyst Paper in British Columbia, and Kruger’s operations in Newfoundland and Labrador and Quebec.
The U.S. has been investigating whether goods have been sold in the United States market at lower prices than sold in a domestic market and whether those goods have been subsidized by a foreign government.
Premier Dwight Ball expressed frustration with U.S. protectionist policies in a statement on Wednesday.
“The continued attacks by the United States on Canadian and local industries are unwarranted and punitive,” Ball said. “Corner Brook Pulp and Paper has not been the influencer in these attacks but caught in the middle of larger trade disputes. We stand by our support of the company and the individuals and families that make their livelihood off the forestry and will continue to work with them to support this industry.”
Corner Brook Pulp and Paper employs more than 500 people and is the centrepiece of a provincial forestry industry that is valued at $286.5 million annually, and directly and indirectly employs over 5,000 people.