A Cry to Limit Chinese Imports Rings at Paper Mill

By Steven R. Weisman

Published: March 2, 2007

This article is about a paper mill in Maryland that is trying to fight the importation of cheaper products from China. This is a familiar story in the struggle of the American industrial base trying to cope with globalization, but this one may have a very different ending.

In coming weeks, the US Commerce Department is expected to decide whether to impose duties on high-gloss paper known as “coated paper,” the kind made at the Maryland facility, which is imported from China. The twist on this story is that many trade specialists in Congress and in the industry expect the duties to pass. In fact, China has gone to court in advance to block the decision.

This is a monumental decision with far reaching repercussions. If imposed, these duties would set an important precedent in the US, reversing 20 years of American trade policy. Under the current trade policy, the United States has refrained from making accusations that “non-market economies” like China were granting illegal subsidies to industries. In its court case, China argues that changing that policy without legislation or a full regulatory hearing would be illegal. Democrats in Congress say that if the Commerce Department does not act, they will pass legislation forcing its hand.

The argument for changing the current policy is that, in the era of globalization, China has become a major player on the world economic stage, and that a policy that was created when they were just beginning to move away from communism is out of date and hurting the US economy.

This is a huge decision that will impact not only the US and China, but the rest of the world as well. This case could set the precedent for future trade with China. Experts predict that if the duties are imposed, it will decimate the Chinese paper industry because the price of their paper in the US would double overnight. It is important to watch this case because it is one of the most high-profile cases of the trade problems caused by globalization. Whichever way this case goes, it will set the precedent for international trade relations in the future.