Tuesday, October 21, 2014
The Forest Products Association of Canada (FPAC) calls on the federal government to respond to the trade action China has taken on Canada’s forest products industry.
China imposed preliminary duties on imports of dissolving pulp from Canada of 13 % in November of 2013 and in April of 2014 they became permanent. These anti-dumping duties are resulting in significant loss of market for Canadian dissolving pulp producers.
“This trade action has had a negative impact on several forest communities.” said David Lindsay, President and CEO of FPAC. “Not only has this action had a negative impact on several forest communities across Canada, and hurt Canadian exports, but future jobs have also been impacted with the cancellation of previously- announced investments in dissolving pulp opportunities in Saskatchewan, Quebec, and Terrace Bay, Ontario.”
The Chinese Ministry of Commerce (MOFCOM) issued a preliminary determination in November of 2013 that dumping of dissolving pulp from Canada, United States and Brazil was causing injury to China’s domestic pulp market. It immediately imposed a 13 % duty on the importation of dissolving pulp from Canada. In their final determination the Chinese confirmed that a duty of 23.7 percent will also be imposed on any new Canadian mills exporting dissolving pulp to China in the future.
“The actions, in our opinion, are not in accordance with the World Trade Organization (WTO) rules for anti-dumping. We urge the federal government to seek a solution to this trade action immediately,” said, Mr. Lindsay.
“It is important that the Chinese government understand the serious impact this trade action is having and will continue to have on Canada’s companies, and the communities that depend on those jobs” continued Lindsay. “We hope MOFCOM will revisit its decision and not require our members and the federal government to undertake protracted legal action at the World Trade Organization.”
Forest products are Canada’s largest export to China at 4 Billion dollars annually. We wish to maintain good relations with China and build on this trading relationship. The forest products industry supports liberalized trade in all products to support our Vision2020 sector transformation objective of generating an additional $20 billion in economic activity from new products and new markets.