Congressman Tom Petri, Representing Wisconsin's 6th District

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Press Releases

For Immediate Release:
September 16, 2010


	Petri Testifies Against Unfair Trade

Rep. Petri Testifies Against Unfair Trade WASHINGTON - Rep. Tom Petri testified Thursday at the International Trade Commission (ITC) in support of Wisconsin paper manufacturers and their employees and against Chinese and Indonesian dumping of subsidized paper exports to the U.S.

In two separate preliminary rulings earlier this year, the U.S. Commerce Department determined that China and Indonesia have engaged in unfair trade practices to benefit their paper manufacturers. The Department imposed temporary duties on paper products from the two countries.

The next step will be for the ITC to determine whether or not American manufacturers have been harmed by subsidized competition. If the answer is yes, the duties will be made permanent, possibly with adjustments. If the answer is no, collected duties will be refunded to paper importers. A decision is expected in early November.

Petri reminded the Commission that the NewPage mill in Kimberly, Wisconsin, closed in 2008, in part because of subsidized imports of coated paper. Petitioners Appleton Coated, NewPage, and their workers face continued threats to their industry by subsidies and dumped coated paper.

In his testimony, Petri denounced "a deliberate and persistent policy of subsidizing the production of coated paper for export to the United States by China and Indonesia."

"I have generally supported keeping our markets open in exchange for new overseas opportunities for American companies," Petri said. "I have great confidence that our companies and our workers can compete with the best in the world. However, we cannot be foolish enough to think that pursuing free and fair trade is enough to make it happen. It is imperative that our laws prohibiting dumping be enforced and safeguards be put in place to defend those in harm's way."

Separate from his testimony, Petri commented: "We know we have to compete in this world, but if it's done unfairly, that's something that we look to the government to try to do something about. So I was here as a representative to testify before the Commission to urge them to follow the recommendations of the Department of Commerce which independently determined that there had been dumping by the Chinese, and to impose sanctions."

"It's one thing to talk about this, it's another to actually do something. And the time has come for the federal government to start turning the screws on unfair Chinese competition and restoring some much appreciated and needed jobs in Kimberly and in northeast Wisconsin," he said.

Also on hand was a group of millworkers, including Scott Milheiser who is employed by Appleton Coated in Combined Locks.

Milheiser commented, "This hearing is about our future, really. This is about our livelihoods and the futures of our towns. When we have to struggle against unfair trade, it makes it hard for us to maintain our jobs. And when we lose our jobs, we lose our town because our schools close. And really, it's about the people. For me, from my end, it's about the people."

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The text of Rep. Petri's testimony follows:

Testimony of U.S. Rep. Thomas E. Petri

Certain Coated Paper Suitable for High-Quality Print Graphics

Using Sheet-Fed Presses from China and Indonesia

Inv. Nos. 701-TA-470-471 and 731-TA-1169-1170 (Final)

September 16, 2010

Chairman Okun and Members of the Commission,

Thank you for the opportunity to testify at today's hearing. It's a pleasure to speak on behalf of Wisconsin's paper mill workers and their employers at Appleton Coated and NewPage Corporation. Papermaking has a long history in Wisconsin and the industry is an important component of our manufacturing environment.

For those of us from Wisconsin, numbers are not necessary to explain papermaking's central role in our economy. Paper mills, pulp mills, lumber trucks, and expansive forests are so visible that we learn early that paper is being made nearby and that many of our neighbors are employed in the industry.

Numbers, however, can be of service in painting the picture for those not entirely familiar with Wisconsin. A recent study published by the Alliance for American Manufacturing, citing Census Bureau data on employment in the paper industry, showed Wisconsin as the nation's leader in paper industry jobs, with approximately 8 percent of the national paper and paper products workforce. By congressional district, the 6th, which I represent, was second in terms of paper industry employment, behind only our neighbors to the north in Wisconsin's 8th District.

As you know, today's hearing concerns the importation of coated paper from China and Indonesia. The Department of Commerce has already announced a preliminary finding of subsidization and issued a preliminary determination that coated paper from these countries has been dumped in the United States. You will determine whether the domestic coated paper industry, both employees and employers, has been harmed by this dumping - and I urge you to do so. I believe that the pattern of subsidization and dumping found by the Department of Commerce has had a significant and negative impact on paper industry employment.

For the past decade, paper employment has been falling nationwide. According to the Bureau of Labor Statistics, as recently as November 2000, the industry employed more than 600,000 workers. By October 2009, paper sector jobs had fallen below 400,000. Where did these jobs go?

A vivid example was provided in 2008 when NewPage closed its paper mill in Kimberly, Wisconsin, putting more than 500 experienced papermakers out of work. Unaddressed dumped paper from China was an important factor in the decision to close that mill. For more than a century, Kimberly's mill stood at the heart of the community's economy. In a town where the high school's athletic teams are nicknamed the "Papermakers," the mill was central to its culture as well. The Kimberly mill was a modern, state of the art facility with a dedicated and experienced workforce. The mill offered a quality product and was competitive in the coated paper market. No mill, however, can compete successfully against subsidized producers and Kimberly's mill was shut down, a casualty of unfair trade and unenforced trade laws.

The paper industry faces many challenges, including a decline in demand for the high-quality coated paper that is the subject of today's hearing. This decline, however, should not be allowed to divert attention from a deliberate and persistent policy of subsidizing the production of coated paper for export to the United States by China and Indonesia. Rather, shrinking demand should be considered in concert with these subsidies because, as a market gets smaller, it should be fair competition that determines the winner. Today, we have an opportunity to take a step toward such fair competition.

I have generally supported keeping our markets open in exchange for new overseas opportunities for American companies. I have great confidence that our companies and our workers can compete with the best in the world. However, we cannot be foolish enough to think that pursuing free and fair trade is enough to make it happen. It is imperative that our laws prohibiting dumping be enforced and safeguards be put in place to defend those in harm's way.

In closing, I urge the Commission to consider carefully the testimony given today and to study the record developed by these proceedings. Having taken these steps, I believe that you will conclude that the subsidization and dumping of coated paper that have been substantiated by the Department of Commerce cannot help but bring material harm to the domestic coated paper industry in Wisconsin and throughout the United States.

Thank you.