AF&PA supports Section 301 investigation into excess paper capacity

The American Forest & Paper Association (AF&PA) testified before the Office of the United States Trade Representative (USTR) in support of the ongoing Section 301 investigation examining structural excess capacity and non-market practices affecting global paper manufacturing markets.

During the hearing, AF&PA emphasised the importance of maintaining fair, market-based competition while protecting the competitiveness of U.S. pulp and paper manufacturers.

“Trade policy shapes manufacturing decisions,” said David Ross, Director of Government Affairs at AF&PA. “We support a fact-based review of excess capacity, while avoiding measures that could put U.S. jobs, investment or operations at risk.”

Focus on excess capacity and market distortions

AF&PA urged the Section 301 Committee to adopt an evidence-based approach when evaluating the impact of global overcapacity on the U.S. paper industry. According to the association, significant capacity expansions and rising export volumes in certain regions — including China — may not reflect actual market demand and could distort international competition.

The organisation also encouraged USTR to investigate potential trade remedy evasion practices, including transshipment and downstream conversion activities that may undermine existing trade enforcement mechanisms.

Concerns over unintended impacts on U.S. industry

At the same time, AF&PA warned against trade measures that could unintentionally increase costs for critical industrial machinery and equipment used in U.S. paper manufacturing operations. The association stated that higher equipment costs could negatively affect mill modernisation projects, reduce investments, and weaken the long-term global competitiveness of the U.S. industry.

AF&PA confirmed that it intends to continue engaging with USTR throughout the Section 301 review process as discussions on trade policy and manufacturing competitiveness continue.