WASHINGTON, D.C. -- Verso Corporation, Sappi North America and Appleton Coated LLC, together with the United Steelworkers (USW), have called for an extension of duties on imports of coated paper from China and Indonesia that were previously determined to have threatened material injury to U.S. producers and workers. Duties resulting from this determination are periodically reassessed under what are known as "sunset reviews."

The original decision to impose duties was made by the International Trade Commission (ITC) in a bipartisan unanimous decision in November 2010. That decision was based on petitions filed by NewPage Corporation (since then acquired by Verso), Sappi North America, Appleton Coated LLC and the USW in September 2009 with the Department of Commerce and the ITC. The petitions alleged that certain coated paper from China and Indonesia had been subsidized and dumped in the United States, resulting in injury to the domestic industry and its employees.

The domestic coated paper industry had experienced capacity reductions and underutilization resulting in the loss of jobs in communities across the country. The petitions showed, and the Commerce Department and ITC validated, that unfairly traded imports from China and Indonesia were a significant contributor to that underutilization of capacity, mill closures and resultant job losses.

In a market where the demand for coated papers was declining, the ITC found that rising volumes of imported coated paper from the two countries threatened the domestic industry with material injury. The Commerce Department found that imports of coated paper from China were being dumped at margins ranging from 7.62% to 135.84% and were subsidized at margins ranging from 19.46% to 202.84%. The Commerce Department found that imports from Indonesia were being dumped at a margin of 20.13% and subsidized at a margin of 17.94%.

Since duties were imposed, imports from both China and Indonesia have dropped dramatically and fair market conditions have been restored.

Today, coated paper is produced across the United States by thousands of workers who are paid good, family supportive wages. Coated paper is generally used for printing multicolored graphics for books, catalogues, magazines and other commercial printing applications.

"Continuing relief under the existing ITC orders will help maintain a level playing field by deterring Chinese and Indonesian government subsidies and dumping that would likely resume if the duties were to be eliminated," said Verso Corporation President and CEO David J. Paterson. "Free trade requires that the rules are fairly applied and uniformly followed."

"The initial decision helped restore a fair market and discourage unfair and illegal dumping and subsidies of our competitors," said Mark Gardner, President and CEO of Sappi North America. "That decision needs to be extended through this sunset review so that we can compete based on the quality of our products and so that we can continue to invest in our mills, equipment and people as well as the sustainable manufacturing and procurement practices we implement and pursue."

Doug Osterberg, President and CEO of Appleton Coated LLC, stated, "There's no question that, if the orders are lifted, serious injury to domestic industry will follow. World markets in paper are under constant pressure, and dumping and subsidy orders have been a principal means of assuring the existence of a fair and competitive market in these products. Our customers deserve products that are fairly priced and confidence that existing suppliers will continue to meet their needs. The trade laws have been a vital tool in ensuring the viability of these markets, producers and the sustained investments in our plants, technology and employees."

Jon Geenen, USW international vice president, stated, "This is an industry that has been under attack by predatory trade practices from China and Indonesia. The market is under continuing pressure that has continued to put production and jobs in jeopardy. The duties that are in place need to continue to ensure that we can maintain good jobs and fair market conditions. We are hopeful that this can be dealt with in an expedited manner so that the competitive threat doesn't again lead to production and job loss here in the U.S. Our members work hard, play by the rules and deserve to have the trade rules strictly enforced."