SCHUMER: NY JOBS & UPSTATE/LOCAL PAPERS ARE ON THE LINE; CALLS ON TRUMP ADMINISTRATION AND COMMERCE SECRETARY TO PROTECT NEW YORK’S AT-RISK NEWPAPER INDUSTRY; SENATOR SAYS IF NEW PLAN TAKES SHAPE, NEWSPAPERS COULD BE FORCED TO SLASH LOCAL STAFF – OR EVEN GO OUT OF BUSINESS

Duties On Special Paper From Canada Will Hurt Upstate New York’s Hometown And Local Newspapers 

Schumer: Commerce Department Needs To Pay Extra! Extra! Attention To Protecting New York’s Newspaper Industry Before Local Jobs Fold

U.S. Senate Minority Leader Charles E. Schumer today urged the U.S. Department of Commerce to reconsider its recent decision to impose duties on the raw material – uncoated groundwood paper from Canada – used by New York’s already at-risk Upstate and local newspaper companies. Schumer said Canadian groundwood paper is used by small to large newspapers across New York State, and if the federal government pursues large duties, New York’s large and small newspapers, which already operate on tight margins, would suffer, causing workers to lose jobs and diminishing the flow of top-notch journalism to people across Upstate New York. Declining newspaper demand could, in turn, harm the paper industry, which these duties aim to protect. That is why the American Forestry Paper Association, which represents 80 percent of U.S. paper manufacturers, opposes the case. Schumer called on the Commerce Department to reconsider the impact of these duties on America’s paper industry and by extension, newspaper industry, and reconsider their decision that would stave off harmful impacts to an already at-risk, vital American industry.

“The bottom line is that this decision will have a huge and harmful impact on newspapers in every hometown across Upstate New York, so the Department of Commerce should reconsider this decision. This decision is not supported by the domestic paper manufacturing industry, so Commerce should find a new way forward that does not place such an unfair and unwise burden on an already at-risk and extremely vital American industry that provides so many jobs and so much value to New Yorkers from one corner of the state to the other,” said Schumer. “I am all for fair trade, and I lead that fight on many fronts – especially against China – but when the federal government tries to put in place duties that will lead to a loss of American jobs, a rise in prices and a diminution of top-notch journalism and information to residents across Upstate New York it’s time to yell: ‘Stop the presses’!”

“A diverse and deep media industry – including our hometown newspapers – is fundamental to an informed citizenry, healthy communities and a vibrant democracy,” added Schumer.

Schumer explained groundwood paper imports are primarily used as newsprint, but also as retail inserts by producers in New York. There are 721 newspapers in New York with a print readership of more than 15 million. Schumer said constituents are concerned that assessed duties could have a particularly adverse impact in the Northeast region. Schumer said that New York newspapers are concerned that due to the predominance of Canadian imports in the Northeast region, the lack of any U.S. groundwood producer in the region and the lack of production capacity in the U.S., duties could dramatically increase their operating costs.

Schumer has heard from many in the newspaper industry in New York State and beyond that are worried that they will not be able to absorb these costs and would be forced to cut production and potentially go out of business. This could lead to an intensified shift to digital products in the industry, which could harm U.S. groundwood paper producers.

“If fully implemented, this damaging decision by the Commerce Department – at the behest of but one company on the West Coast – will cause prices to rise, American paper workers to lose their jobs and some New York papers to even go out of business. It makes no sense and should be altered,” said Schumer.

On January 9, the Department of Commerce assessed preliminary countervailing duties ranging from 6 to 9.9 percent on Canadian imports of groundwood paper, which are currently being collected. Commerce will assess preliminary antidumping duties in early march, which could be significantly higher than the countervailing duties. These investigations are scheduled to be finalized in July (duties are made permanent or not), when the ITC will decide whether or not there is injury or risk of injury to the domestic industry.

A copy of Senator Schumer’s letter appears below:

The Honorable Wilbur Ross

Department of Commerce

Dear Secretary Ross:

I write on behalf of my constituents in the groundwood paper value chain. Quad Graphics in Saratoga Springs, New York and 89 small to large newspapers across New York have written to me to express their concerns with the antidumping and countervailing duty investigations involving certain uncoated groundwood paper from Canada. I urge you to use your discretion to revisit the domestic industry’s support of this petition and consider the adverse impact to domestic groundwood paper manufacturers before proceeding with these investigations. 

Groundwood paper imports are primarily used as newsprint, but also as retail inserts by producers in New York. According the New York News Publishers Association there is roughly 17,000 employees at New York daily newspapers. There are 721 newspapers in New York with a print readership of more than 15 million. My constituents are concerned that assessed duties could have a particularly adverse impact in the Northeast region. As indicated by the preliminary International Trade Commission (ITC) report (Publication 4732), in 2016 nearly 55 percent of U.S. imports from Canada came into the Northeast region. My constituents are concerned that due to the predominance of Canadian imports in the Northeast region, the lack of any U.S. groundwood producer in the region and the lack of production capacity in the U.S., duties could dramatically increase their operating costs. Producers in the newspaper industry in my state have informed me that they would not be able to absorb these costs and would be forced to cut production and potentially go out of business. This could lead to an intensified shift to digital products in the industry, which could harm U.S. groundwood producers. It is my understanding that the American Forestry Paper Association, which represents 80 percent of U.S. paper manufacturers, opposes the case for this reason.

Again, I urge you to use your discretion to revisit the domestic industry’s support of this petition and consider the adverse impact to domestic groundwood paper manufacturers before proceeding with these investigations.

Thank you for your attention to this issue.

Charles E. Schumer

U.S. Senator

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