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China Withdraws Antidumping Decision on US Kraft Linerboard

Jan. 10, 2006 - The American Forest & Paper Association (AF&PA) lauded today's announcement that China's Ministry of Commerce (MOFCOM) had withdrawn its imposition of "antidumping" duties on U.S. kraft linerboard imported into China.

"I want to thank Ambassador Portman and his staff at USTR, as well and the Department of Commerce, for their efforts to bring about the resolution of this case," said AF&PA President & CEO W. Henson Moore. "The possibility of WTO action by the U.S. prompted China to reconsider whether their case was defensible under WTO rules. Apparently, they finally came to the conclusion it wasn't."

"The Chinese had no legal basis for imposing these antidumping tariffs against U.S. kraft linerboard in the first place," continued Moore. "There was no evidence that U.S. imports had injured the domestic Chinese industry. Furthermore, the Chinese weren't even comparing like products. So, all along, we argued that China could not legally impose antidumping duties on our products. We are glad they have now come to the same conclusion. "

On September 30, 2005 MOFCOM issued a final determination finding that U.S. producers (along with those in South Korea, Taiwan and Thailand) were dumping kraft linerboard (primarily used in the manufacture of corrugated shipping containers) and causing material injury to China's domestic linerboard industry. As a result of this finding, MOFCOM imposed antidumping duties on kraft linerboard imported into China from the U.S. and the other three countries.

On November 29, AF&PA filed an official appeal under MOFCOM's administrative reconsideration procedures disputing their finding in this case. Today in Beijing, MOFCOM announced that in response to the administrative reconsideration appeal it was withdrawing its original finding, effectively terminating the imposition of antidumping duties. China is a large market for U.S. kraft linerboard producers with exports to that country amounting to $130 million in 2004. A large part of this would have been lost if the antidumping duties were not ended.

AF&PA is the national trade association of the forest, paper and wood products industry. AF&PA represents more than 200 companies and related associations that engage in or represent the manufacture of pulp, paper, paperboard and wood products. The forest products industry accounts for approximately 7 percent of total U.S. manufacturing output, employs 1.1 million people, and ranks among the top ten manufacturing employers in 42 states.

SOURCE: AF&PA




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