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Corner Brook Pulp and Paper about to be hit again with American tariff

Regardless of what people are calling it, the Corner Brook Pulp and Paper mill in Corner Brook is seeing changes to its staffing levels.
Corner Brook Pulp and Paper is bracing for another tariff to be imposed on its industry by the United States.

Corner Brook Pulp and Paper is about to get hit with another tariff being imposed by the American government on the industry.

According to a press release issued by Premier Dwight Ball, who expressed his concern about what he called the ongoing protectionist actions of the Trump administration, the Corner brook mill will be slapped with a 22.16 per cent anti-dumping duty that comes into effect five days from today.

That comes on the heels of a 9.93 per cent countervailing duty that was imposed on the company in January.

Ball said the action by the United States government is adversely impacting the province’s forestry industry, and in particular Corner Brook Pulp and Paper.

Corner Brook Pulp and Paper employs more than 500 individuals and is the backbone of Newfoundland and Labrador’s integrated forestry industry. The forestry industry is valued at $286.5 million annually and directly and indirectly employs more than 5,000 people in pulp and paper, sawmilling, harvesting and value-added industries.

The provincial government will be holding a technical briefing and media availability related to the United States preliminaries duties on Canadian newsprint at the Confederation Building in St. John’s at 3 p.m. today.

Ball and the provincial government have had ongoing communications on the seriousness of the tariffs on the provincial industry with officials from the United States and the federal government, including federal ministers and Prime Minister Justin Trudeau.

The press release issued Wednesday afternoon indicated this advocacy will continue.

“The continued attacks by the United States on Canadian and local industries are unwarranted and punitive,” Ball is quoted as saying in the press release.

“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.”

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.

An anti-dumping and countervailing duty investigation is a domestic process the United States uses to determine whether goods imported from another country are harming its domestic industry. The anti-dumping portion of the investigation focuses on whether a good has been sold in the United States market at lower prices than sold in a domestic market. The countervailing duty portion of the investigation focuses on whether a good has been subsidized by a foreign government.

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