August 29, 2018 / 9:18 PM / 8 months ago

RPT-U.S. trade panel finding ends duties on Canadian groundwood paper

(Repeats story from earlier with no changes)

WASHINGTON, Aug 29 (Reuters) - The U.S. International Trade Commission said on Wednesday it had made a final finding that imports of uncoated groundwood paper from Canada are not harming American producers, terminating preliminary duties that had been placed on the products.

The U.S. Commerce Department in August determined that the paper, which is used for printing newspapers, was being dumped in the U.S. market and was unfairly subsidized, and it set a dumping rate of up to 16.88 percent and anti-subsidy duties of up to 9.81 percent.

The decision by the ITC, which had previously made a preliminary finding of harm to U.S. producers, means those duties will no longer be applicable.

Trade tensions between the United States and Canada have been fraught in recent months, with U.S. President Donald Trump’s administration acting against Canadian exports of softwood lumber, steel and aluminum.

On Monday, Trump announced a trade deal with Mexico that he said would replace the North American Free Trade Agreement between the United States, Mexico and Canada.

Canadian Foreign Minister Chrystia Freeland was in Washington on Wednesday for talks aimed at salvaging a three-way deal.

The United States imported about $1.21 billion of uncoated groundwood paper from Canada last year. The paper is typically used for book publishing and printer paper, as well as newsprint.

The antidumping and countervailing duty investigation was initiated after a complaint from North Pacific Paper Company LLC of Longview, Washington. (Reporting by Tim Ahmann Editing by Susan Thomas)

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