US commission finds no harm to paper mills from imported newsprint; ruling kills tariffs on Canadian

[mahatmakanejeeves]

Source: Associated Press, via CNBC

US commission finds no harm to paper mills from imported newsprint; ruling kills tariffs on Canadian imports

Published 43 Mins Ago

The Associated Press

WASHINGTON(AP) — US commission finds no harm to paper mills from imported newsprint; ruling kills tariffs on Canadian imports.

Read more: https://www.cnbc.com/2018/08/29/the-associated-press-us-commission-finds-no-harm-to-paper-mills-from-imported-newsprint-ruling-kills-tariffs-on-canadian-imports.html

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David Fahrenthold Retweeted

https://twitter.com/Fahrenthold

A win for Canada and for American newspapers, a loss for the Trump administration and the one (1) private equity firm that got Trump to impose these tariffs:

Link to tweet

WASHINGTON (AP) — US commission finds no harm to paper mills from imported newsprint; ruling kills tariffs on Canadian imports.

[Wellstone ruled]

2. Wish someone would name the Hedge Fund.

Sure it was a Trump money bundle Guy.

[machoneman]

3. Can't trumpenstein overrule a commission? Anybody know? n/m

n/m

[mahatmakanejeeves]

4. Here's more about the hedge fund, from The Wall Street Journal.

Bad News for U.S. Papers, but Tariffs Are Paying Off for One Rock Capital

David Fahrenthold Retweeted:

Skyrocketing newsprint tariffs under the Trump admin have been opposed by all except one company: private-equity firm One Rock Capital Partners, owner of a single paper mill who secured the levies after taking their case directly to Wilbur Ross

Link to tweet

POLITICS

Bad News for U.S. Papers, but Tariffs Are Paying Off for One Rock Capital

Private-equity firm headed by a Washington and Wall Street veteran pushed for the tariffs on behalf of its North Pacific Paper and hope they are affirmed in a coming trade-commission vote

By William Mauldin

https://twitter.com/willmauldin

Aug. 27, 2018 7:00 a.m. ET

When the Trump administration applied tariffs on imports of newsprint earlier this month, it brushed aside opposition from the Canadian government, the U.S. newspaper industry, printing companies, and a long list of lawmakers, including Democrats and Republicans. ... The tariffs, though, have been cause for celebration at private-equity firm One Rock Capital Partners LLC.

Government records show that a team from the New York-based firm approached the Commerce Department, including one meeting with Secretary Wilbur Ross, saying Canadian newsprint imports were hurting One Rock’s investment in North Pacific Paper Co., a paper mill also known as Norpac.

Commerce responded to One Rock’s appeal by setting tariffs on Canadian imports, causing newsprint prices to jump by as much as 30%, significantly lifting Norpac’s business prospects. “This was a complicated and unique case,” said Mr. Ross, himself a financier with a long history of financial transactions, including private equity. ... For Mr. Ross, the “bad actors” are Canadian paper mills that the Commerce Department says get access to wood fiber at below-market prices, giving them an advantage in making paper. U.S. lumber and paper firms have long blamed their Canadian competitors for gaining cheap access to trees cut on public land.

The Commerce Department’s tariffs only become permanent if the U.S. International Trade Commission, an independent government agency, votes that the alleged dumping and subsidies harmed American paper producers. Newspapers hope the commission will use its authority to nullify the tariffs, but Norpac’s lawyer say they believe the tariffs will be affirmed at the vote, expected on Aug. 29.
....

Write to William Mauldin at [e-mail]

[mahatmakanejeeves]

5. Links from the Commerce Department:

Last edited Fri Aug 31, 2018, 01:24 PM - Edit history (2)

Edited to note: Whoops, wrong agency. See reply #6. The agency in question is not the International Trade Administration. The correct agency is the United States International Trade Commission:

United States International Trade Commission

It does not have a Twitter account.

- - - - - - -

Original text of this reply:

International Trade Administration, Main page

International Trade Administration, Enforcement and Compliance

Here's the head honcho. He's no dummy.

GILBERT B. KAPLAN

Under Secretary of Commerce for International Trade
U.S. Department of Commerce
International Trade Administration

Gilbert B. Kaplan was nominated by President Donald J. Trump to become Under Secretary of Commerce for International Trade in the United States Department of Commerce, confirmed by the U.S. Senate on March 13, 2018, and sworn in to the position on March 20, 2018. Gil Kaplan was a partner at King & Spalding and part of the International Trade Practice Group. His practice focused on international trade cases and trade policy issues.
....

Mr. Kaplan graduated from Harvard Law School, cum laude, Harvard College, magna cum laude, and Phillips Exeter Academy, with high honors. He and his wife Betty Ann have two children, Katharine and Nicholas.

From one year ago:

Commerce Initiates Antidumping Duty and Countervailing Duty Investigations of Imports of Uncoated Groundwood Paper from Canada

From six months ago:

Commerce Preliminarily Finds Dumping of Imports of Uncoated Groundwood Paper from Canada

Sure enough, they have the twitter:

https://twitter.com/TradeGov

[mahatmakanejeeves]

6. Trump tariffs on Canadian newsprint to be reversed

Trump tariffs on Canadian newsprint to be reversed

By MEGAN CASSELLA 08/29/2018 02:08 PM EDT

An independent trade panel on Wednesday derailed the Trump administration's push to impose tariffs on imports of newsprint from Canada, handing a significant win to U.S. newspapers, union groups and scores of lawmakers who pressed for the change. ... The 5-0 decision by the U.S. International Trade Commission marks a significant win for newspapers that were reeling from increased costs of up to 30 percent for a core product. It also removes a prominent thorn in the bilateral relationship between the United States and its northern neighbor and comes as the two countries are working to resolve differences in NAFTA talks by the end of this week.

“Today is a great day for American journalism,” said David Chavern, president and CEO of the News Media Alliance, in a statement. “The ITC’s decision will help to preserve the vitality of local newspapers and prevent additional job losses in the printing and publishing sectors.”

The ITC unanimously decided that imports of Canadian newsprint do not materially injure or threaten to injure U.S. industry. That vote will reverse the Commerce Department's move earlier this year to impose tariffs on imports of what's known as uncoated groundwood paper.
....

Government records show that a team from the private equity firm pressed the Commerce Department on the issue, including in a meeting with Secretary Wilbur Ross, according to a recent article in The Wall Street Journal. The paper credited a former paper industry executive with close ties to Washington and Wall Street with initially getting the tariffs in place. ... After an investigation — and despite significant pushback from industry and union representatives as well as dozens of members of Congress — the Commerce Department in January moved to impose anti-dumping and countervailing duties on imports of newsprint ranging from 4.5 percent to 22 percent. The agency recently lowered those levels, but only moderately — a step that left both sides unhappy. ... The ITC's decision on Wednesday means that U.S. officials will stop collecting the penalties on imports and will begin refunding what importers have already paid, though that process could take several months.
....

Earlier, I linked to the International Trade Administration. That's a different agency. The correct agency is the United States International Trade Commission:

United States International Trade Commission