The newspaper industry is fighting potential tariffs on Canadian uncoated groundwood paper it says are baseless and could threaten thousands of jobs.
The printing, publishing and paper-producing industries announced Monday they were launching the Stop Tariffs on Printers and Publishers, or STOPP, coalition to combat tariffs of up to 32 percent on paper from Canada that would greatly raise production costs.
A single company, the North Pacific Paper Company in Washington, lobbied for countervailing and anti-dumping duties, arguing Canadian companies were dumping the paper used for newsprint for less than it's worth.
Printers, publishers and paper producers, which collectively employ 600,000, argue that the North Pacific Paper Company, or NORPAC, is manipulating the federal government to pad its profits. They warn that thousands of jobs in the publishing business and already struggling newspaper industry could be at stake.
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An industry coalition that includes the American Society of News Editors, Association of Alternative Newsmedia, Association of American Publishers, Association for Print Technologies, Book Manufacturer’s Institute, Catalyst Paper, Inland Press Association, Kruger, Local Search Association, National Newspaper Association, News Media Alliance, Printing Industries of America, Quad Graphics, Rayonier Advance Materials, Resolute Forest Products, Southern Newspaper Publishers Association, Trusted Media Brands, Valassis Communications, and Worzalla will ask the International Trade Commission and Congress to block the tariffs.
“Newsprint is the second largest expense for small newspapers after human resource costs,” said Susan Rowell, president of the National Newspaper Association and publisher of the Lancaster News. “A decision by the federal government to impose tariffs on our paper supply would imperil our news-gathering missions and put jobs in jeopardy at our newspapers and at many other organizations and companies in our communities that rely upon a healthy newspaper.”
STOPP said newsprint consumption has eroded by 75 percent since the year 2000 not because of unfair foreign trade but because of an erosion of the newspaper market as readers migrate online.
“The bottom line is these tariffs on uncoated groundwood paper would not protect domestic paper producers. Paper manufacturers are not able to absorb the cost of the tariff and have already let it be known that the tariff will be passed on to U.S. consumers,” said Joel Quadracci, chairman, president & CEO of Quad/Graphics. “This will result in driving up the costs of print and force an even faster migration to digital options at a time when our industry is already being severely disrupted. This will result in the loss of U.S. jobs. In the case of rural residents with no broadband access, they will end up underserved with no newspaper either.”
Newsprint price hikes threaten newspaper jobs and newspapers themselves, STOPP warns.
“Publishers are already feeling the negative consequences of a tighter newsprint market and higher prices because of these preliminary newsprint duties,” said David Chavern, president and CEO, News Media Alliance. “We will turn over every stone to fight these duties so that there is no disruption in the flow of news and information to the citizens who rely upon printed newspapers throughout the country.”
NORPAC said the tariffs will protect paper jobs in Washington, Mississippi and Georgia.
“What the U.S. uncoated groundwood papers industry wants is a level playing field, and this decision is an important step forward for American producers, workers and their families that have been the victims of unfair Canadian trade practices for too long,” CEO Craig Anneberg said.
