After months of paper mills being closed around Wisconsin, Gov. Jim Doyle is backing Appleton Papers, Inc. as the U.S. International Trade Commission investigates the unfair trade practices by competing Chinese and German companies.
The thermal lightweight paper made by Appleton Papers — often used in receipts at restaurants and ATMs nationwide — is increasingly coming from foreign companies because of unfair trade practices that make it harder for American papermakers like Appleton Papers to compete.
Starting in June, paper mills around Wisconsin have begun to close, beginning with Domtar’s Port Edwards mill, which closed in June and lost 500 jobs.
Wausau Paper Corporation then closed one of two paper machines at their Otis Mill in Maine in August, losing 150 jobs, following NewPage Corporation closing their mill in Kimberly in the beginning of September, losing 600 jobs.
Two weeks ago, the U.S. Commerce Department found that German and Chinese paper distributors had sold products well below fair market value in the U.S., which may have been contributing to the decline of Wisconsin’s paper industry.
It is now up to the ITC to determine if these practices are undercutting American paper mills. The ITC could impose duties on the companies if it is found that they have caused enough harm.
Employee-owned Appleton Papers has close to 1,350 employees in Wisconsin and accounts for 60 percent of the world’s lightweight thermal paper, according to Lee Sensenbrenner, spokesperson for Doyle.
“This is the kind of company we want to keep around Wisconsin,” Sensenbrenner added.
Sensenbrenner went on to say that Doyle is “doing everything he can” for American companies and the families that they support.
“The paper industry has had a long, rich history in Wisconsin, and is very important to our state. We don’t want foreign countries dumping into our economy, so we need to level the playing field,” Sensenbrenner added.
Doyle appeared last Thursday before the ITC along with Rep. Tom Petri, R-Fond du Lac, Rep. Steve Kagen, D-Appleton, and U.S. Sen. Herb Kohl, D-Wis.
Kagen, who represents the district where Appleton Papers is located, asked the ITC to stop the distribution of unfairly priced lightweight thermal paper.
“In Northeast Wisconsin, paper mills have sustained our communities for generations, and I am working hard to make sure that continues,” Kagen said in a press release. “We need balanced trade that allows Wisconsin paper workers to compete fairly against paper coming in from foreign countries.”
Tyler Schwartz, spokesperson for Petri, said that the proposed duties would help Appleton get back on its feet.
“If the ITC finds the dumping has caused harm, duties will continue to be assessed which will bring prices up to normal and allow Appleton to compete with the industry,” said Schwartz.
Schwartz also stated, however, that the ITC has a lot to analyze before making their decision, saying, “They don’t always view harm in the same way the public does.”
The foreign companies could face new import taxes on their products depending on the ITC’s decision, which is expected to be made by the end of October.
