As part of a settlement entered into by Verso with two Canadian producers of supercalendered papers, Verso today requested that the U.S. Department of Commerce revoke its order imposing duties on supercalendered papers made by those Canadian producers and imported into the U.S. The SC paper tariffs were intended to offset the impact of Canadian subsidies paid to Canadian producers of SC paper in order to help U.S. producers who were injured by the subsidized imports. However, injurious Canadian SC imports continue to enter the United States even with the tariffs, and imports from other non-U.S. SC producers which are not subject to the tariffs have increased. These factors offset the benefits of the tariffs to Verso. If the Department of Commerce grants Verso’s request to revoke the tariffs, it could provide Verso with a meaningful amount of cash over time, which we will evaluate how to use to best benefit our company and make us an even healthier supplier. However, there is no assurance that the Department of Commerce will grant our request to revoke the tariffs or that such funds will be provided to Verso. Be assured that we continue to make supercalendered paper at the Duluth Mill. Verso’s decision to settle the trade case is unrelated to any decisions about potential changes to Verso’s production assets at the Duluth Mill or to the types of products we make there.
Forest Products Association of Canada (FPAC) welcomes the Canadian Transportation Agency’s recent findings around rail service delivery in the Vancouver corridor.
Canada’s forest products sector relies on an efficient and reliable transportation system to move its products throughout Canada and to global markets. Over the past two years, system congestion through the Lower Mainland of BC has created real challenges for our companies and our workforce. Last year alone, rail delays and bottlenecks cost the forest products sector over $500 million dollars.
FPAC supported the federal government’s move to complete a comprehensive diagnostic around these transportation system issues. “This ruling requires annual rail service reports which will result in improved information sharing and greater transparency so we can better pinpoint infrastructure or service problems. Predictability is absolutely critical for sectors like ours that depend on Canada’s rail service to keep our businesses running and our workers working,” noted FPAC ‘s President and CEO, Derek Nighbor. “This is about making sure our rail system can respond to current and future demands. We look forward to continuing our work with our railway partners to support Canadian jobs and grow our economy,” he added.
FPAC remains committed to working with government and all of our supply chain partners to help secure a more competitive, efficient, and effective transportation system. We look forward to learning more about the details of this investigation in the coming days, and believe that the results of this effort can enable the changes necessary to make Canada’s supply chain stronger.