The Forest Products Association of Canada (FPAC) applauds the federal government for pursuing trade action against China at the World Trade Organization (WTO) regarding duties on Canadian dissolving pulp.
China had imposed anti-dumping duties of up to 23.7% on Canadian dissolving pulp in 2013 saying the imports were negatively impacting China’s domestic pulp market. The Chinese duties have resulted in significant loss of market for Canadian dissolving pulp producers including FPAC members and put a chill on future investment.
“It is unfortunate that Canada has been forced to take this step but certainly the Chinese trade action was not in accordance with WTO rules on anti-dumping,” says David Lindsay, the President and CEO of FPAC. “The discriminatory duties on Canadian dissolving pulp have hurt Canadian exports and resulted in a number of investments being cancelled for new production facilities. This impacted jobs and economic opportunity.” Forest products are Canada’s largest export to China at $4.8 billion, and China remains a critical future market. However exports of dissolving pulp to China dropped 20% last year to $255 million.
“Certainly the forest products industry wants to maintain positive relations with China and build on our existing trading relationship,” says Lindsay. “However it is essential that we all act in accordance with international trade rules and regulations.”
FPAC backs liberalized trade in all forest products to support the Vision2020 objective of generating an additional $20 billion in economic activity from new products and new markets by the end of the decade.