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Latest U.S. government duty decision alleges newsprint 91Ƶdumping91Ƶ

91ƵWe will not be pushed around,91Ƶ says BC Jobs Minister Bruce Ralston
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Catalyst Paper91Ƶs Crofton mill in the Cowichan Valley. (Catalyst)

They won the last trade dispute over glossy paper, and now B.C.-based Catalyst Paper faces an 91Ƶanti-dumping91Ƶ duty of more than 22 per cent on newsprint.

The latest preliminary decision by the U.S. Department of Commerce is on top of a six per cent countervailing duty imposed on Jan. 8. A final decision on both measures is expected in early August.

91Ƶ This U.S. trade action is unwarranted and without merit,91Ƶ Catalyst CEO Ned Dwyer said in a statement released Wednesday, vowing to 91Ƶvigorously defend91Ƶ the company against the trade action.

B.C. Jobs Minister Bruce Ralston said the provincial government will do its best to help the company and its employees in B.C. communities.

91ƵWe will not be bullied,91Ƶ Ralston said. 91ƵWe will not be pushed around. We will work closely with Catalyst and the federal government to fight this preliminary decision by the U.S. Department of Commerce, and demand that B.C. is treated fairly by its largest trading partner.91Ƶ

Catalyst has its corporate headquarters in Richmond, its distribution centre in Surrey and paper mills in Crofton, Port Alberni and Powell River.

Crofton produces 350,000 tonnes of newsprint and 377,000 tonnes of pulp per year, with nearly 600 employees. The Port Alberni operation produces directory and lightweight coated paper. Powell River mill, with 383 employees, produces newsprint and uncoated mechanical specialty papers.

The U.S. decision affects 91Ƶuncoated groundwood paper91Ƶ used in newspapers, directories, flyers, catalogues and books. Directory paper was excluded from the preliminary ruling.

91ƵEven with the exemption of directory paper, the remaining anti-dumping and countervailing duties are onerous and a critical cost challenge to Catalyst,91Ƶ Dwyer said. 91ƵThey pose a threat to our competitiveness and the sustainability of our business and we will continue to vigorously defend ourselves against them.91Ƶ

In 2015, the U.S. agency final review determined that a countervailing duty on glossy or 91Ƶsupercalendered91Ƶ paper was not justified because Catalyst did not receive significant government subsidies during the period it reviewed.





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