Nolan Urges Crack Down on Illegal Paper Dumping by China, Indonesia and Three Other Nations

Press Release

U.S. Rep. Rick Nolan today strongly urged the U.S. International Trade Commission (ITC) to crack down on the illegal dumping of massive amounts of foreign government-subsidized paper into the U.S. marketplace. Nolan noted that these violations of U.S trade laws have already resulted in the loss of thousands of U.S. paper industry jobs while continuing to put more at risk, including 580 workers at the Packaging Corporation of America plant in International Falls, Minnesota.

Nolan, the former owner of an international export trading company, appeared along with four Republican members of Congress before a hearing after which the ITC will decide whether to finalize tough new countervailing and anti-dumping duties against five countries. In his testimony, the 8th District lawmaker cited "clear and unmistakable evidence that large paper producers from Australia, Brazil, China, Indonesia and Portugal are . . . putting severe and unfair competitive pressure on American workers, American jobs and American manufacturers (with) China and Indonesia the worst offenders."

Turning to the situation in northern Minnesota's border region, Nolan added, "Unfortunately, due to the rapid rise in unfairly traded imports, the International Falls plant was forced to shut down two machines in 2013 and eliminate 265 jobs. Packaging Corporation of America has shown its dedication to the industry since purchasing the plant in 2013, and we cannot allow that investment in the future of International Falls to be disrupted by the egregious and illegal dumping of subsidized foreign products. The fact is -- unfair foreign trade practices like those in question today put pressure on the very fabric and survival of communities like International Falls."

Nolan further pointed out that while domestic demand for uncoated copier and commercial printing paper is declining, subject imports of foreign government-subsidized paper rose by 71.7% between 2012 and 2014, and jumped by 46% during the first three quarters of 2014 alone. Meanwhile, total U.S. market share by the five nations now facing sanctions nearly doubled from 2012 to 2014 -- from 9.6 to 17.4%.

"I am greatly disturbed to note that because of these damaging trends, more than 2,500 Americans have lost their jobs since 2011. Four American plants in this sector have closed and another seven have reduced capacity, devastating communities across the country," Nolan added.

The United Steel Workers Union, Packaging Corporation of America, Domtar Corporation, Finch Paper and Glatfelter Company jointly filed the original anti-dumping complaints now being considered by the ITC. The final determination to impose countervailing and anti-dumping duties is set for February 20, 2016.

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