The United States International Trade Commission (ITC), the quasi-judicial independent federal agency responsible for investigating matters of trade has determined coated free sheet paper from China, Indonesia, and Korea does not injure U.S. Industry. In a new release, the ITC states, "U.S. industry is neither materially injured nor threatened with material injury by reason of imports of coated free sheet paper from China, Indonesia, and Korea that the U.S. Department of Commerce has determined are subsidized and sold in the United States at less than fair value."

NewPage Corporation had petitioned the ITC in October 2006 to look into improper or illegal subsidies to China, Indonesia, and Korea paper producers. In December 2006 the ITC determined that there was "a reasonable indication that a U.S. industry is materially injured or threatened with material injury by reason of imports of coated free sheet paper from China, Indonesia, and Korea that are allegedly subsidized and sold in the United States at less than fair value."

At the time of the ITC's initial determination, Mark Suwyn, chairman and chief executive officer for NewPage Corporation stated, “The dumping and subsidization of Chinese, Indonesian and South Korean paper producers should not be tolerated and the governments of China, Indonesia and South Korea should stop subsidizing pulp and paper production and exports from those countries. We believe everyone should have a fair opportunity to compete in this market.”

The proposed tariff caught the ire of many printers within the industry who were afraid increased prices on foreign paper would drive US print buyers to Canada or Mexico where printers would have a competitive advantage by not having to pay higher paper costs. Tim Burton, president of Burton & Mayer of Menomonee Falls, Wisconsin wrote an open letter (see BM-Response.pdf) to NewPage's chairman Marc Suwyn saying,

My problem with NewPage's position is that by increasing the cost of printing through the tariffs that the government will impose, you will force printing customers to seek alternatives. Contrary to your statements in the letter, Canadian and Mexican printers that are close to the border have no problems competing with American printers in their responsiveness and closeness to customers. An even larger problem that you do not address (and my second issue with your letter) is that rather than forcing the customers to look elsewhere for printing, it will encourage them to find other, more cost effective advertising media altogether – a net loss for both the printing and paper industries.

On March 31st Commerce Secretary Carlos Gutierrez announced the Bush Administration would impose sanctions against Chinese paper imports saying, "The United States today is demonstrating its continued commitment to leveling the playing field for American manufacturers, workers and farmers."

As a result of this latest ruling by the ITC, no antidumping or countervailing duties will be imposed on the import of coated free sheet paper from China, Indonesia, and Korea.