The Economic Impact of U.S. Trade Sanctions on Imports of Paper Products

September 2011 – A Study by Dr. Robert Shapiro and Sonecon, LLC, Commissioned by World Growth

In September 2009, three, large U.S.-based paper companies (NewPage Corporation, Appleton Coated and Sappi-North America) and the United Steelworkers Union (USW), filed complaints of unfair trade practices by Chinese and Indonesian coated paper producers with the International Trade Commission (ITC) of the U.S. Department of Commerce. This conflict between U.S. and foreign paper producers ignores the most basic features of the global paper market: nations expand their capacity to produce paper products primarily to meet domestic demand. As a result, the global market share claimed by paper producers in the United States and other major paper producing nations closely tracks each country’s share of global paper consumption. If Asian paper producers continue to upgrade their technologies and organizations while American producers depend upon duties to make their products more price-competitive in the United States, the ultimate result will be a growing share of the world market for Asian producers and a shrinking share for U.S. companies. This study examines the economic impact of the anti-dumping and countervailing duties ultimately imposed on those imports by the ITC.

Click here to read the rest of the World Growth report

Comments are closed.