Thursday, September 24, 2009

Dumping : U.S. accuses Indonesian paper producers


United States producers of paper Newpage Corp.., Appleton Coated LLC, Sappi Fine Paper, together with trade unions of the United Steelworkers of America filed anti-dumping petitions and countervailing of coated paper producers from Indonesia and China. In their petition accused the government of Indonesia and China dumping of paper between the layers that are used in car brochures and corporate annual reports. Petisioner lawyer, Gilbert B. Kaplan, told the Wall Street Journal to ensure petitions are not associated with the meeting G-20 leaders in the same city. "Four separate petition of 2 thousand pages thick on charges of dumping and subsidies has been prepared in advance," he said Wednesday local time.

So that the petition is accepted, the petisioner must prove to the U.S. Department of Commerce that the government of Indonesia and China to provide subsidies to producers of coated paper. They also must demonstrate that the products are exported to America are sold at below-market prices or production costs. Petisioner also required to show the U.S. International Trade Commission that imports of paper have been damaged or at least threaten the U.S. market. "To prove that we already have strong evidence," said Kaplan.

The petisioner estimates coated paper imports increased 40 percent within six months of 2009 than the same period last year. There are also imports from Indonesia and China currently control 30 percent of the market, an increase of almost double than last year. Coated paper market total in 2008 is estimated to worth U.S. $ 1.8 billion.

This case is not the first time proposed by the American paper producers. In 2007, the U.S. Commerce Department set a temporary tariffs on coated paper from Indonesia, China, and South Korea. But the decision was later annulled by the International Trade Commission.