APP China releases “Paper Contract with China” 1Q 2010 report

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APP China releases “Paper Contract with China” 1Q 2010 report

April 22, 2010 - 20:33
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SHANGHAI, April 23, 2010 (Press Release) -APP-China examines the influence of the recent spate of international trade investigations into paper imported from China in the "Paper Contract with China" 2010 First Quarter Report, and concludes that unfair trade barriers will only impair the sustainable development of the paper industry as well as the world economy.

On April 17 2010, the European Union (EU) launched an anti-subsidy investigation against fine coated paper imported from China based on a complaint from CEPIFINE. This case is the EU's first anti-dumping and anti-subsidy (AD/AS) investigation against China. Prior to the EU case, the U.S. had also initiated an anti-dumping and countervailing (CVD) duty probe into Chinese coated paper and the U.S. Department of Commerce's preliminary ruled that a CVD duty between 3.92% to 12.83% should be applied to the Chinese products.

Trade defense measures, such as AD/CVD(AS) are meant to ensure a level playing field so that all companies can compete on equal terms. However, if they are misused and put in place to act as barriers to trade, they will harm markets on both sides and impede the recovery of the world economic in the long run. Taking the U.S. AD/CVD investigations as an example, if the unwarranted tariff is approved by the ITC, the disparity caused excess supply and decreasing demand will be intensified in China, which may ultimately distort the global market. In the same vein, the ruling will impact on the U.S. printing, publishing and other downstream industries, which will face higher costs and thus a decrease in their own competitiveness, ultimately hurting all American consumers of finished coated paper products.

Zheng Rui, the executive director of APP-China, commented that the idea of sustainable development requires balancing environmental, economic and social concerns and developing ways to further growth in all three areas, which is something arguably complicated for developing countries. Zheng went on to emphasize the importance of fair trade in promoting the sustainable development of the paper industry and in helping speed up recovery of the global economy.

Besides the feature on global AD/CVD paper investigations, the newly redesigned report provides an update of APP-China's efforts towards the sustainable development of the paper industry, to remain an open dialogue with related stakeholders. In the past three months, APP-China has achieved some social recognition in scientific plantation, clean production and corporate social responsibilities, including the "2009 Multinational Corporations in China Contribution Award" and "Award of Contribution to Low Carbon Business (International Enterprise)". In addition, APP-China head-quarter and its main factories participated in Earth Hour 2010, a project initiated by WWF.