December 4, 2017 - News Media Alliance
December 4, 2017
The Hon. Wilbur L. Ross, Jr., Secretary United States Department of Commerce 1401 Constitution Avenue, NW Washington, D.C. 20230
Re: Uncoated Groundwood Paper from Canada, Inv. Nos. C?122?862 and A-122-861
Dear Secretary Ross:
On behalf of the thousands of employees working at the more than 1,100 newspapers that we publish in cities and towns across the United States, we urge you to heavily scrutinize the antidumping and countervailing duty petitions filed by North Pacific Paper Company (NORPAC) regarding uncoated groundwood paper from Canada, the paper used in newspaper production. We believe that these cases do not warrant the imposition of duties, which would have a very severe impact on our industry and many communities across the United States. NORPAC's petitions are based on incorrect assessments of a changing market, and appear to be driven by the short-term investment strategies of the company's hedge fund owners. The stated objectives of the petitions are flatly inconsistent with the views of the broader paper industry in the United States.
The print newspaper industry has experienced an unprecedented decline for more than a decade as readers switch to digital media. Print subscriptions have declined more than 30 percent in the last ten years. Although newspapers have successfully increased digital readership, online advertising has proven to be much less lucrative than print advertising. As a result, newspapers have struggled to replace print revenue with online revenue, and print advertising continues to be the primary revenue source for local journalism.
If Canadian imports of uncoated groundwood paper are subject to duties, prices in the whole newsprint market will be shocked and our supply chains will suffer. Some paper manufacturers see the pending tariffs as a harbinger for further declines in the newsprint market and have indicated that they will convert operations to manufacture more profitable paper products. With fewer producers of newsprint, newspapers would face even higher costs or a disruption in supply of this critical raw material.
Facing increased costs of newsprint across all suppliers, many small-town papers will be at risk of failing. To survive, some newspapers may resort to increasing print subscription prices, which would only exacerbate the severe challenges facing print newspapers.
As to the U.S. paper industry, the industrywide shift from print newspapers to digital news consumption - not imports from Canada - has caused a decline in demand for uncoated groundwood paper. Conversely, in recent years, the market share of Canadian uncoated groundwood paper imports has actually declined.
Equally concerning, it appears that North Pacific's petitions may be driven by the economic strategies of the company's hedge fund owners, One Rock Capital Partners, which
purchased NORPAC in November 2016. NORPAC's petitions do not reflect the views of the paper industry in the United States. In fact, the antidumping and countervailing duty petitions are opposed by other U.S. producers of newsprint and the American Forest and Paper Association, which represents the broader U.S. paper industry. Given the outlier status of NORPAC, it appears that One Rock Capital Partners may be using the petitions as a means of increasing the short-term value of this one mill, without any regard for the dramatic negative implications for U.S. newspapers in thousands of small cities and towns.
Local newspapers are the core of our communities' access to local news about governmental activity, local economic and business issues, high school sports, and milestones for local citizens. Our thousands of employees and millions of readers are counting on you to protect the industry from NORPAC's brazen attempt to manipulate the trade laws in a manner that would inflict widespread harm on the newspaper industry, without the support of others in the domestic paper industry.
Respectfully submitted,
Alaska Star Eagle River, AK
Peninsula Clarion Kenai, AK
Gadsden Times Gadsden, AL
Montgomery Advertiser Montgomery, AL
St. Clair News-Aegis Pell City, AL
The News-Courier Athens, AL
The Tuscaloosa News Tuscaloosa, AL
Homer News Homer, AK
Birmingham Business Journal Birmingham, AL
Headland Observer Dothan, AL
Press Register Mobile, AL
The Cullman Times Cullman, AL
The North Jefferson News Gardendale, AL
Alma Journal Van Buren, AR
Juneau Empire Juneau, AK
Eufaula Tribune Eufaula, AL
Huntsville Times, Huntsville, AL
Opelika-Auburn News Opelika, AL
The Dothan Eagle Dothan, AL
The Prattville Progress Prattville, AL
Booneville Democrat Booneville, AR
Charleston Express Greenwood, AR
Hot Springs Village Voice Hot Springs Village, AR
Log Cabin Democrat Conway, AR
Newport Independent Newport, AR
Pine Bluff Commercial Pine Bluff, AR
The Baxter Bulletin Mountain Home, AR
The Stuttgart Daily Leader Stuttgart, AR
White Hall Journal White Hall, AR
Phoenix Business Journal Phoenix, AZ
Chico Enterprise-Record Chico, CA
Desert Dispatch Barstow, CA
Greenwood Democrat Greenwood, AR
Hope Star Hope, AR
La Prensa Libre Del Noreste de Arkansas Springdale, AR
Lonoke County Democrat North Little Rock, AR
Nevada County Picayune Hope, AR
North Little Rock Times North Little Rock, AR
Paris Express Paris, AR
Press Argus Courier Van Buren, AR
Southwest Times Record Fort Smith, AR
The Daily Siftings Herald Arkadelphia, AR
The Gurdon Times Arkadelphia, AR
The Sun-Times Heber Springs, AR
Van Buren County Democrat Clinton, AR
Arizona Business Gazette Phoenix, AZ
Arizona Daily Sun Flagstaff, AZ
Adobe Press Santa Maria, CA
Brentwood News Brentwood, CA
Daily Democrat Woodland, CA
Daily News Red Bluff, CA
Dunsmuir News Mount Shasta, CA
El Cerrito Albany Journal Walnut Creek, CA
El Mojave
Fort Bragg Advocate-News
Hispanos Unidos
Victorville, CA
Inland Valley Daily Bulletin Ontario, CA
Los Banos Enterprise Los Banos, CA
Mendocino Beacon Fort Bragg, CA
Mount Shasta Herald Mount Shasta, CA
Paradise Post Paradise, CA
Redlands Daily Facts Redlands, CA
San Gabriel Valley Tribune Monrovia, VA
Selma Enterprise Selma, CA
St Helena Star Saint Helena, CA
The Cambrian Cambria, CA
The Daily Press Victorville, CA
Fort Bragg, CA
Escondido, CA
Laguna Woods Globe Laguna Woods, CA
Lake County Record-Bee Lakeport, CA
Lucerne Valley Leader Victorville, CA
Marin Independent Journal San Rafael, CA
Merced Sun-Star Merced, CA
Mercury-Register Chico, CA
Orange County Excelsior Santa Ana, CA
Palo Alto Daily News Menlo Park, CA
Pasadena Star-News Pasadena, CA
Record Searchlight Redding, CA
Sacramento Business Journal San Francisco Business Times
Sacramento, CA
San Francisco, CA
Santa Cruz Sentinel Scotts Valley, CA
Santa Maria Times Santa Maria, CA
Silicon Valley Business Journal San Jose, CA
Siskiyou Daily News Yreka, CA
The Reporter Vacaville, CA
The Argus Fremont, CA
The Chowchilla News Chowchilla, CA
The Daily Independent Ridgecrest, CA
The Daily Review Hayward, CA
The Desert Sun Palm Springs, CA
The Gridley Herald Gridley, CA
The Hanford Sentinel Hanford, CA
The Lompoc Record Lompoc, CA
The Monterey Herald Monterey, CA
The Salinas Californian Salinas, CA
The San Bernardino County Sun San Bernardino, CA
The Taft Midway Driller Taft, CA
The Tribune San Luis Obispo, Ca
The Whittier Daily News Whittier, CA
The Willits News Willits, CA
Times-Standard Eureka, CA
Tri-Valley Times Pleasanton, CA
Ukiah Daily Journal Ukiah, CA
Visalia Times-Delta Visalia, CA
Ag Journal La Junta, CO
Bent County Democrat Las Animas, CO
Brush News-Tribune Brush, CO
Clear Creek Courant Idaho Springs, CO
Commerce City Sentinel Express Daily Record
Brighton, CO
Canon City, CO
Denver Business Journal Denver, CO
Estes Park Trail-Gazette Estes Park, CO
The Kingsburg Recorder Selma, CA
The Napa Valley Register Napa, CA
The Stockton Record Stockton, CA
The Weekly Calistogan Calistoga, CA
Times-Herald Vallejo, CA
Tulare Advance-Register Visalia, CA
Weed Press Mount Shasta, CA
Brighton Standard Blade Brighton, CO
Colorado Hometown Weekly Boulder, CO
Daily Times-Call Longmont, CO
Fort Lupton Press Brighton, CO
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