Loading...
HomeMy WebLinkAbout2010-07-12 10-253 RESOLVECOUNCIL ACTION Item No. (l < J S Date: July 12, 2010 Item/Subject: RESOLVE, Indicating Support for the Domestic Coated Paper Industry Responsible Department: Legal Commentary: Daniel Lawson, Field Coordinator for the Alliance for American Manufacturing, has asked the Council to issue a resolve indicating the commitment of the City to the importance of manufacturing, expressing support for enforcement of trade laws, and expressing support for the domestic coated paper industry. The Alliance for American Manufacturing, a partnership between manufacturers and the United Steelworkers Union, is seeking to gain support opposing Chinese and Indonesian paper producers, which AAM says have been engaged in the unfair trade practices of dumping and subsidization. Department Head Manager's Comments: The Government Operations Committee recommended that this Resolve bec s'be;dj,7 by the entire City Council. Interim City Manager Associated Information: Resolve Budget Approval: Legal Approval: Introduced for x Passage _ First Reading Referral Finance Director 4 -4City Solicitor Assigned to Councilor — Wheeler CITY OF BANGOR (TITLE.) RESOLVE: Indicating Support for the Domestic Coated Paper Industry BE IT RE50L VEQ BY THE CITY COUNCIL OF THE CITY OF BANGOR, THAT July 12, 2010 WHEREAS, the economic downturn is having a critical impact on everyday Americans who are struggling to maintain or find jobs in an increasingly difficult environment; and WHEREAS, over two million manufacturing jobs have been lost since the start of the recession in December 2007, and well over five million jobs and over 50,000 factories have been lost in the last ten years; and WHEREAS, in a December 2, 2009, USA Today/Gallup poll, Americans were asked what should be done to create more jobs in the U.S. and the most frequent response was to "keep manufacturing jobs in the U.S.;" and WHEREAS, a strong industrial base is important to our nation's economic and national security, demonstrated by the following: American manufacturing directly employs nearly 12 million Americans and directly supports 8 million additional jobs in other sectors; American manufacturing pays better wages (20 percent on average) than other sectors of the economy; American manufacturers are responsible for two- thirds of research and development investment in the United States; nearly 80 percent of all patents filed come from the manufacturing sector; and WHEREAS, on September 23, 2009, Appleton Coated LLC, NewPage Corporation, Sappi Fine Paper North America and the United Steelworkers Union initiated a trade investigation with respect to unfair trade practices (dumping and subsidization) conducted by Chinese and Indonesian producers of coated paper; and WHEREAS, dumping occurs when a foreign producer sells into the domestic market for less than the price that producer charges in its home market or when its U.S. prices are below the cost to produce the product and subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods; and WHEREAS, the United States has in place trade laws that allow domestic industry and its workers to petition for relief from unfair trade practices that create an "unlevel playing field" and lead to plant closures and job loss in communities throughout America; and WHEREAS, the United States International Trade Commission and the United States Department of Commerce are reviewing the paper case and will make determinations as to whether dumping and subsidization have occurred and whether domestic producers and its workforce have been materially injured as a result; and WHEREAS, imports from the subject countries grew by roughly 40 percent in the first six months of 2009, as compared to the same period in 2008, and domestic shipments dropped by roughly 38 percent; and WHEREAS, Chinese and Indonesian producers have captured almost 30 percent of our market in coated paper products, double the amount from the previous year; and WHEREAS, since 2002, roughly 60,000 jobs have been lost in the overall paper sector; and WHEREAS, the paper case affects 6,000 workers whose jobs are at risk from unfair trade competition; and WHEREAS, both the Chinese and Indonesian governments have longstanding policies to encourage the development of their paper industries and have provided a host of illegal subsidies to paper producers to give them an advantage offer domestically produced goods. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BANGOR, THAT: (1) a vibrant manufacturing sector is critical to an immediate economic recovery and to the long-term health of the City of Bangor and the United States; and (2) free trade cannot occur unless our trade laws are strictly enforced; and (3) our coated paper industry is the most efficient in the world and its workers can compete with any foreign competition that does not enjoy the benefit of illegal government assistance; and (4) the United States Department of Commerce and the United States International Trade Commission should hold Chinese and Indonesian producers accountable for unfair trade practices that distort markets, devastate production and employment in the United States, and affect the livelihood of the citizens of the City of Bangor and communities throughout the United States. IN CITY COUNCIL July 12, 2010 Motion Made and Seconded for Passage Motion Doubted Vote: 4-5 Councilors Voting Yes: Bronson, Gratwick, Nealley, Wheeler Councilors Voting No: Blanchette, Hawes, Palmer, Stone, Weston Motion Fails CITY CLE 7 (TITLE,) -Indicating Support for the D�est3r Coated Paper Industry Assigned to Codneflor OtIngre.61.1 of t1le 1111itel �*Nlttetl 1Clttt1Ili agttotl. W_1051 October 29, 2009 The Honorable Marilyn R. Abbott, Secretary United States International Trade Commission 500 E Street, S.W. Washington, DC 20436 RE: Certain Coated Paper Suitable For High -Quality Print Graphics Using Sheet -Fed Presses From China and Indonesia, Inv. Nos. 701 -TA -471 and 731 -TA -1 169-1170 (Preliminary) Dear Secretary Abbott: We are writing you today on behalf of two Maine producers ofcoated printing paper, NewPage Corporation and Sappi Fine Paper North America. NewPage, Sappi, Appleton Coated and the United Steelworkers have joined in filing antidumping and countervailing duty petitions regarding imports of coated printing paper from China and Indonesia. The petitions cover unfair subsidies to the coated printing paper industries in China and Indonesia, as well as injurious dumping by producers in both countries. Imports of coated paper from China and Indonesia have increased by 40 percent in the first half of 2009, so that imparts from these countries have now captured 30 percent of the domestic market. This has occurred, despite the steep drop in demand for coated papers due to the global economic downturn, because of significant levels of underselling by Chinese and Indonesian producers. As a result, NewPage has been forced to shutter capacity at a plant in Rumford, Maine, as well as in its operations in other states, resulting in thousands of lost jobs. Roth NewPage and Sappi have also been forced to take long periods of unscheduled market -related downtime, reducing incomes and adding uncertainty to the future of this industry. The large influx of additional dumped and subsidized imports prompted the filing of these petitions. They focus on coated paper in sheet form, which is the vast bulk of imports from China and Indonesia. We understand that the International 'trade Commission has scheduled a vote in the preliminary phase of these investigations f'or November 6. We urge the Commission to recognize the significant injury that is being caused by these unfairly traded imports and the vulnerable condition of the domestic industry when it makes that decision. We also request that you include this letter in the public record in these investigations. Sincerely, Michael II Michid ` Member of Congress Chel ie ingree Member of Congress I Hurl fr U 1Ih PI , ;, I f t, i'n I'f rt S UnItcd �tatcs �cnatc ., March 31, 2010 The Honorable Timothy F. Geithner Department of the Treasury 1500 Pennsylvania Avenue, NW Washington, DC 20220 Dear Mr. Secretary: We write today to ask that the Department of Treasury list China as a currency manipulator in its April 15`h bi-annual exchange rate report to Congress. In January 2010, senior fellows with the Peterson Institute for International Economics, William R. Cline and John Williamson, estimated the Renminbi (RMB) to be undervalued by a staggering 41 percent relative to the dollar. The tremendous undervaluation of the RMB directly subsidizes exports from China. This direct form of subsidization of exports upends the playing field against American manufacturers and has resulted in the loss of 2.4 million American jobs according to a March 23, 2010 report by the Economic Policy Institute. Given the severity and widespread use of currency manipulation, we are troubled that no economy has met Treasury's standards necessary to be considered a currency manipulator since 1994. Treasury's justification for its stance, namely that nations with undervalued currencies who appear to be taking steps to enhance exchange rate flexibility are not currency manipulators, allows economically damaging policies to persist. To that point, the aforementioned Cline and Williamson point out that a number of other nations engage in significant undervaluation: Hong Kong (32 percent), Malaysia (31 percent), Taiwan (29 percent), and Singapore (25 percent). When we consider the substantial adverse impact on American jobs attributable to currency manipulation, the U.S. government should revisit our approach to dealing with the issue of currency manipulation. 'That is why we support the Currency Exchange Rate Oversight Reform Act of 2010 (S. 3134), which would enhance Treasury's ability to confront this issue. We encourage you to follow the commitment you made in your January 21, 2009 comments to the Senate Finance Committee to act aggressively to address currency manipulation, specifically in relation to China. 6 i. 10 J Please use the bi-annual report to unambiguously declare these actions for what they are—an unfair competitive advantage utilized by nations to harm the American economy. We must use the tools we have to create an economic atmosphere where our manufacturers can compete and create jobs to grow the U.S. economy. Thank you for your attention to this issue. We look forward to reviewing your report. Sincerely, Robert P. Casey, Jr. DebO�t*M-tc a` --�� U.S. Senator U.S. Senator X / , Carl Levin U.S. . Senator Olym a J. Sn we U.S. Senator usse'll . Peingold U.S. Senator Susan ;1i1. Collins U.S. Senator FACT SHEET Commerce Initiates Antidumping Duty and Countervailing Duty Investigations of Certain Coated Paper from Indonesia and the People's Republic of China • On October 14, the Department of Commerce (Commerce) is scheduled to announce its decision to initiate antidumping and countervailing duty investigations on imports of certain coated paper from Indonesia and the People's Republic of China (China). • Dumping occurs when a foreign company sells a product in the United States at less than normal value. Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods. • The petitioners for these investigations are: Appleton Coated LLC (WI); NewPage Corporation (OH); S.D. Warren Company d/b/a Sappi Fine Paper North America (MA); and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (PA). • The products covered by these investigations include certain coated paper and paperboard in sheets suitable for high quality print graphics using sheet -fed presses; coated on one or both sides with kaolin (China or other clay), calcium carbonate, titanium dioxide, and/or other inorganic substances; with or without a binder; having a GE brightness level of 80 or higher; weighing not more than 340 grams per square meter; whether gloss grade, satin grade, matte grade, dull grade, or any other grade of finish; whether or not surface -colored, surface - decorated, printed (except as described below), embossed, or perforated; and irrespective of dimensions ("Certain Coated Paper"). Certain Coated Paper includes (a) coated free sheet paper and paperboard that meets this scope definition; (b) coated groundwood paper and paperboard produced from bleached chemi- thermo-mechanical pulp ("BCTMP") that meets this scope definition; and (c) any other coated paper that meets this scope definition. Certain Coated Paper is typically (but not exclusively) used for printing multi -colored graphics for catalogues, books, magazines, envelopes, labels and wraps, greeting cards, and other commercial printing applications requiring high quality print graphics. Specifically excluded from the scope are imports of paper and paperboard printed with final content printed text or graphics. The products covered by these investigations are currently classified in the Harmonized Tariff Schedule of the United States ("HTSUS") under item numbers: 4810.14.11, 4810.14.1900, 4810.14.2010, 4810.14.2090, 4810.14.5000, 4810.14.6000, 4810.14.70, 4810.19.1100, 4810.19.1900, 4810.19.2010, 4810.19.2090, 4810.22.1000, 4810.22.50, 4810.22.6000, 4810.22.70, 4810.29.1000, 4810.29.5000, 4810.29.6000, 4810.29.70. While the HTSUS subheading is provided for convenience and customs purposes, Commerce's written description of the subject merchandise governs the scope of these investigations. 10 x'53 • In 2008, imports of certain coated paper from Indonesia were valued at an estimated $44.3 million and imports from China were valued at an estimated $228.7 million. NEXT STEPS • The U.S. International Trade Commission (ITC) is scheduled to make its preliminary injury determination on or about November 2. • If the ITC determines that there is a reasonable indication that imports are materially injuring, or threatening material injury to, the domestic industry, the investigations will continue, and Commerce will be scheduled to make its preliminary CVD determinations in December 2009 and its preliminary AD determinations in March 2010. ALLEGED DUMPING MARGIN: ALLEGED SUBSIDY RATE: U.S. Department of Commerce ( International Trade Administration 9 CASE CALENDAR: EVENT CVD INVESTIGATION AD INVESTIGATION Petitions Filed September 23, 2009 September 23, 2009 Commerce Initiation Date October 13, 2009 October 13, 2009 ITC Preliminary Determination* November 9, 2009 November 9, 2009 Commerce Preliminary Determinations t** December 17, 2009 March 2, 2010 Commerce Final Determinationst March 2, 2010 May 17, 2010 ITC Final Determination*** April 16, 2010 June 30, 2010 Issuance of Orders**** " Wh h April 23, 2010 July 7, 2010 ere t e deadline falls nn a weekend holiday. the appropriate date is the next business day. t These deadlines may be extended under the governing statute. This will take place only in the event of preliminary affirmative determination from the ITC. *" This will take place only in the event of a final affirmative determination by Commerce. " This will take place only in the event of final affirmative determinations by both Commerce and the ITC. IMPORT STATISTICS: INDONESIA 2006 2007 Quantity (Tons) 65,298 57,361 Value (1,000 USD) 48,158 43,856 CHINA Quantity (Tons) 2006 303,405 2007 306,387 I Value (1,000 USD) I 234,127 1 243,002 1 Source. U.S. International Trade Commission ("ITC") Dataweb available at Inij, I;T,7. kI, n7, 77 2008 53,329 44,250 2008 275,723 228,697 U.S. Department of Commerce I International Trade Administration /0 1•r to 14. J 3 FACT SHEET AND TALKING POINTS FILING OF ANTIDUMPING AND COUNTERVAILING DUTY PETITIONS ON CERTAIN COATED PAPER FROM CHINA AND INDONESIA Fact Shoot On September 23, 2009, three U.S. paper producers and the United Steelworkers, filed antidumping and countervailing duty petitions covering certain coated paper from China and Indonesia. The three producers are Appleton Coated LLC, NewPage Corporation and Sappi Fine Paper North America. The petitions allege that Chinese and Indonesian exporters of the coated paper covered by the petitions are selling in the United States at prices below normal value and that producers in China and Indonesia receive subsidies from the Chinese and Indonesian governments. The petitions also allege that the U.S. industry producing comparable coated paper is being injured as a result of unfairly traded imports from these countries. The industry seeks to have the United States Department of Commerce and the U.S. International Trade Commission, the agencies responsible for investigating the alleged unfair trade practices, impose duties to offset Chinese government subsidization and below -cost dumping. According to industry data, total imports of coated paper from China and Indonesia, of which the large majority is classified as covered coated paper, have jumped from 131,687 short tons in the first six months of 2008 to 185,422 short tons in the first six months of 2009 — an increase of nearly 40 percent. During the same period, covered coated paper shipments by domestic manufacturers are estimated to have declined by approximately 38 percent. China and Indonesia together are believed to account for nearly 30 percent of the U.S. market, for the coated paper covered by the petitions, in the first six months of this year, almost double the share they had at the same time last year. Imports from China and Indonesia are underselling U.S. producers and are also steeply discounted relative to other import sources. The petitions provide information demonstrating that the imports have adversely affected the domestic industry and its workers. The domestic industry has experienced substantial capacity reduction and under -utilization resulting in the loss of thousands of jobs. The petitions show that unfairly traded imports from China and Indonesia are a significant contributor to that underutilization of capacity and resultant job loss. The cases are expected to take about a year to complete. The U.S. International Trade Commission will make its preliminary determination regarding whether the U.S. industry is being materially injured by unfairly traded Chinese and Indonesian imports by mid-November. The U.S. Department of Commerce will issue their preliminary determinations regarding government subsidies by December 2009 and regarding dumping by March 2010. 10 1 ra i Talkina Points • Today three paper producers and the USW filed antidumping and countervailing duty cases covering certain types of coated paper that are being imported into the United States from China and Indonesia. • The cases were titled with the two U.S. government agencies responsible for investigating these types of unfair trade practices -- the U.S. Department of Commerce and the U. S. International Trade Commission. • The cases cover two types of unfair trade: dumping and subsidies. • Dumping occurs when a foreign producer sells into the U.S. market for less than the price that producer charges in the home market or when it sells below the cost to produce the product. If the Department of Commerce finds that there is dumping, and the International Trade Commission finds that the U.S. industry is injured by the dumped imports, duties will be imposed to offset the amount of the dumping found to exist. • The Department of Commerce will also determine whether producers in China and Indonesia benefit from government subsidies. If the Department of Commerce finds that countervailable subsidies have been provided, and the International Trade Commission finds that the U.S. industry is injured by the subsidized imports, duties will be imposed to offset the amount of the subsidies found to exist. • Both the Chinese and Indonesian governments have had longstanding policies to encourage the development of their paper industries and have provided a host of subsidies to paper producers to help them grow their businesses. In fact, China is now one of the world's largest producers of coated papers as a result of government subsidies. • The petitions allege that Chinese producers get low-cost loans from government banks; cheap electricity, coal, and water from Chinese utilities; and special prices for chemicals used in paper production from government-owned chemical companies. Chinese paper producers also benefit from a variety of tax subsidies and receive grants from the central and provincial governments. The Chinese government also undervalues its currency — the yuan — which provides a huge windfall to Chinese exporters. • In Indonesia, we have alleged that Indonesian coated paper producers get timber from government- owned lands at below-market prices, that they have benefited from government loans and debt forgiveness, and receive tax breaks. • U.S. producers of coated paper have struggled in the face of low-priced imports of coated paper from China and Indonesia. We have seen the market erode because of unfair trade practices and this has forced the closure of quite a few paper making machines and forced U.S. producers to take market -related downtime. The U.S. trade laws, and the petitions we have filed, do not seek to exclude foreign products from our markets. Rather, their purpose is to assure that foreign products are fairly traded in our markets. • We are hopeful that these cases will restore a level playing field in the market for coated papers. -2- / L CONOR988WONA86 CNLLLIC PINORIt Vis. IaT DI{TRIOT MAINC CONGRESS OF THE UNITED STATES HOUSE OF REPRESENTATIVES April 9, 2010 Dear Friends, 1Q5 1. J .S COMMITT« ON ARN[O S[RVICcs SUDCONNITT&t ON SCAPOWtR AND EXPCO1TIONARY 1r~96 SU"ONNITTtt ON OVSRSIONT ANO INVICSTIOATION cONNITTCe ON RIJLCS Thank you all for being here today.. I am sorry that I could not join you in person to express my support fox Maine workers and my dedication to seeing that Maine manufacturers are no longer facing unfair competition &•om overseas.. First, I would like to thank the United Steelworkers and the workers and management of the Rumford and Skowhegan mills for the fantastic work that you all do. I am enormously proud to come from a state with such tough and dedicated workers, and to have the honor- of representing some of you in Congress. I also want to thank Dan Lawson for his great work on behalf of Maine's workers, and for organizing this event. I would like to commend my friend, Senate President Libby Mitchell, for the leadership she has shown on this issue in the Maine Senate. I would also like to thank my colleagues in Maine's congressional delegation — it has been an honor to work with them this past year on ways to preserve and create jobs in Maine.. For too long Maine's paper mills have been at the mercy of Chinese and Indonesian competitors who have been receiving large subsidies from their governments and dumping their products on our markets — skewing the playing field and hurting Maine workers. Since 2007, Chinese and Indonesian imports have been flowing into the U.S. market in enormous volumes. I know that NewPage has been forced to shutter capacity at a plant in Maine as well as other locations.. Both NewPage and Sappi"have also reduced operations at other facilities, including at their existing facilities in Maine. I was proud to have the opportunity in the past year to work with the Maine delegation to confront this issue head-on. Congressman Michaud and I have sent several joint letters on this issue — to Commerce Secretary Gary Locke and the Secretary of the International Trade Commission, Marilyn Abbott — urging them to move forward quickly with investigations into the unfair subsidies to the coated printing paper industries in China and Indonesia, as well as into dumping by producers in both countries, and the ongoing manipulation of currency in China.. With the ITC's unanimous vote in November, and the Commerce Department's March 2 decision in favor- of our American paper manufacturers, I am confident that we are moving in the right direction With the continued work and advocacy of'people like you -- 57 EXCNANO[ STRC[T 1037 LONGWORTH BUILDING SUIT[ 302 WASHINGTON. DC 20515 PORTLAno ME 04101 202-225-6116 207-774-5019 202-225-5590 FAX ��-•� 207.871-0720 •Ax 13 10 i:5;3 and the more than 800 Mainers who have written personal letters in support of this fight — we will solve this problem and see Maine's paper mills thrive once again.. Thank you again for your- dedicated work and your support cerely, (Zee Pmgnee Member of Congress lV APPLETON � � NewPage 5app1 Trade Case Update - March 2, 2010 Appleton Coated LLC, NewPage Corporation, Sappi Fine Paper North America and the United Steelworkers Union filed trade cases on September 23, 2009 seeking to end dumping and subsidy practices, involving certain coated paper produced in China and Indonesia, which have devastated production and employment in the United States. Background The cases deal with subsidy and dumping practices of these countries. The cases identify broad subsidy benefits that producers in each country enjoy and which should be addressed by the U.S. government. Dumping occurs when a foreign producer sells into the U.S. market for less than the price that producer charges in its home market or when its U.S. prices are below the cost to produce the product. The dumping margins identified in the case run as high as 135.8 percent. U.S. Department of Commerce Preliminary Finding of Improper Subsidies The Department of Commerce found that Chinese and Indonesian coated paper producers had received improper subsidies and issued countervailing duty determinations ranging from 3.92 to 17.48 percent As a result of these determinations, the Department of Commerce will impose tariffs on imports of coated paper to offset the unfair advantage provided by subsidization. This triggers the immediate requirement that importers of the paper from the two countries will have to post bond or cash deposits in an amount equal to the announced margins. Support of the Trade Cases: Senators, Representatives and other public officials from all across the country have contacted the International Trade Commission and the Department of Commerce in strong support of the case. These officials have seen firsthand the devastating impact of the Chinese and Indonesian dumping and subsidy practices, on production and employment in their communities and states. They are regularly hearing from people in their communities about the need to respond to foreign unfair trade practices. On February 25, fifteen Senators — Democrats and Republicans — joined together in a letter to Commerce Secretary Locke asking that his Department act to counter China's currency manipulation which operates as a subsidy to its exporters. Specific Decision by the Department of Commerce: The Department of Commerce's decision supports the allegations in the petitions that imports from these two countries are being subsidized. Specifically, in the China investigation the Department of Commerce found that Chinese producers benefitted from preferential lending, preferential income tax programs, tax credits for purchasing domestically -produced equipment, import duty and VAT exemptions for imported capital equipment, research and development tax credits, and preferential provision of electricity. In the Indonesia investigation, the Department of Commerce found that the provision of timber for less than adequate remuneration, government debt forgiveness, and the government of Indonesia's ban on the export of logs, provided countervailable subsidies to coated paper producers in Indonesia. 15 10 11,51i In addition, with respect to the China investigation, the Department of Commerce noted that it is reviewing the Petitioners' allegation that undervaluation of China's currency provides a subsidy, as well as other new subsidy allegations, which could make a difference in the rates assessed in the final determination. Next Stens: • A number of steps will occur as the case proceeds. Each of these steps is vital to ensuring that the unfair trade practices are addressed. ■ On April 28th, the Department of Commerce will issue its preliminary determinations in the antidumping duty investigations. • On an ongoing basis, the government will conduct a further examination, including site visits, to obtain additional facts to guide them in making their final antidumping and countervailing duty determinations. ■ In the Fall, the International Trade Commission will conduct a public hearing to hear the arguments of each side as it prepares its final decision as to whether the domestic industry is injured or threatened with injury by reason of imports of Chinese and Indonesian coated paper. 10 ; 5;` A P P L E T O N :1 NewPage sa p p j Trade Case Update ~ October 23, 2009 Appleton Coated LLC, NewPage Corporation, Sappi Fine Paper North America and the United Steelworkers Union filed trade cases on September 23, 2009 seeking to end dumping and subsidy practices, involving certain coated paper produced in China and Indonesia, which have devastated production and employment in the United States. Background The cases deal with dumping and subsidy practices of these countries. Dumping occurs when a foreign producer sells into the U.S. market for less than the price that producer charges in its home market or when its U.S. prices are below the cost to produce the product. The dumping margins identified in the case run as high as 135.8 percent. The case also identifies broad subsidy benefits that producers in each country enjoy and which should also be addressed by the U.S. government. U.S. Delnartment of Commerce Initiation of Investigation, October 13 2009 • The Department of Commence found that sufficient facts had been presented to initiate an investigation of alleged Chinese and Indonesian unfair trade practices. The successful initiation of these trade cases, by the Department of Commerce, is an important step forward in restoring fair trade in coated paper products. Testimony Before the U.S. International Trade Commission, October, 14 2009 ■ Parties on both sides of the case appeared at a staff briefing at the International Trade Commission to support their positions. Parties testifying in support of the trade cases included: ■ Barry R. Nelson, SVP, Sales, NewPage Corporation ■ Jennifer Miller, EVP, Strategic Marketing and Communications, Sappi Fine Paper NA ■ Anne Ayer, VP, Corporate Development and CIO, Sappi Fine Paper NA ■ Greg Savage, VP, Commercial Sales, Appleton Coated LLC • Jon Geenen, International VP, United Steelworkers (USW) • Jeff Hederick, VP, Strategic Development and Sourcing, Unisource Worldwide, Inc. ■ Don Crew, President, Clampitt Paper ■ Mike Graff, President, Sandy Alexander ■ Jim Sandstrom, President, HM Graphics • Law firms: Stewart and Stewart, King & Spalding Parties testifying in opposition of the trade cases included: • Terry Hunley, President, Asia Pulp & Paper/Americas • Law firm: Winston & Strawn LLP • During its argument at the ITC staff conference, Asia Pulp and Paper contended that U.S. producers were similarly subsidized by virtue of renewable energy tax incentives. its claims are misplaced as the incentives are not designed to promote production by the U.S. paper sector, but rather are intended to promote alternative fuel use, primarily from biomass. 17 10 <`5J" Government Su000rt of the Trade Cases: ■ Senators, Representatives and other public officials from all across the country have contacted both government agencies in strong support of the case. These officials have seen firsthand the devastating impact of the Chinese and Indonesian dumping and subsidy practices, on production and employment in their communities and states. Product Chance since the Case was Filed on September 23.2009: • The product category covered by these cases now includes only coated paper and paperboard in sheets suitable for high quality print graphics using sheet -fed presses, coated on one or both sides and having a GE brightness level of 80 or higher. The government also defined the products covered by the case as those not weighing more than 340 grams per square meter. ■ Initially the cases included sheeter rolls; however, product in roll form have now been dropped from the case. Ne ■ A number of steps will occur as the case proceeds. Each of these steps is vital to ensuring that the unfair trade practices are addressed. • On November 6, 2009, there will be a preliminary vote by the International Trade Commission (ITC) on whether there is a reasonable indication that the imports, that are being dumped and subsidized, are causing, or are threatening to cause, material injury to the domestic industry. • On November 9, 2009, the ITC will transmit its preliminary determination to the Department of Commerce. ■ On December 17, 2009, assuming that the ITC makes an affirmative preliminary injury decision, the Department of Commerce will make its preliminary determination on the countervailing duty levels. However, this deadline could be extended by up to 60 days.