News Release Article from  Global Affairs Canada

Canada to seek NAFTA panel review on supercalendered paper dispute with United States

November 18, 2015 - Ottawa, Ontario - Foreign Affairs, Trade and Development Canada

The Honourable Chrystia Freeland, Minister of International Trade, today announced that Canada has requested a binational panel review, under Chapter 19 of the North American Free Trade Agreement (NAFTA), of the U.S. Department of Commerce final determination on supercalendered paper.

NAFTA Chapter 19 panels review whether countervailing duties are applied in accordance with the laws of the country that made the determination, in this case the United States.

The U.S. launched a countervail investigation earlier this year after U.S. industry alleged that it was injured by subsidized imports of supercalendered paper from Canada.

On October 14, 2015, the U.S. announced final countervailing duty rates, which will be assessed on imports of supercalendered paper from Canada after the final countervailing order is published in early December. This final order will follow today’s determination by the U.S. International Trade Commission that these imports have caused injury to U.S. producers.

Quick facts

  • Supercalendered paper is a type of uncoated groundwood paper commonly used in newspaper inserts and flyers.
  • The United States could soon impose duties of up to 20.18 percent on imports of supercalendered paper from Canada.
  • Exports of supercalendered paper from Canada to the United States were valued at $959 million in 2014.

Quotes

“Canada believes that the U.S. Department of Commerce erred in calculating subsidy rates on Canadian exports of supercalendered paper. Canada is exercising its rights under NAFTA Chapter 19 and requesting a panel review in order to defend the Canadian industry.”

- Chrystia Freeland, Minister of International Trade

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