The U.S. Department of Commerce (Commerce) has announced its preliminary determination that the governments of China and Vietnam are unfairly subsidizing their paper plate industries. As a result, duties of up to 313.14 percent on imports from China and up to 237.65 percent on imports from Vietnam will be imposed. The American Paper Plate Coalition (APPC), which represents the majority of American paper plate production, has welcomed this decision.
William P. Biggens, Jr., President and Co-Owner of Aspen Products, Inc., a member of APPC, stated, "The unlawful subsidies received by Chinese and Vietnamese producers have given them an unfair advantage in the U.S. market - this has had a direct negative impact on American producers and employees. Imposing duties to offset unlawful subsidies is an important first step to ensuring the future health of our industry. We are encouraged that Commerce has taken preliminary action to restore a level playing field."
The announcement follows petitions filed by the APPC in January, which detailed unfair trade practices involving the sale of unlawfully subsidized paper plates at less than fair value. Commerce began investigating the antidumping (AD) and countervailing duty (CVD) claims in February.
The countervailing duty investigations concerning imports from China and Vietnam are ongoing and may lead to higher final CVD rates. Final determinations in these investigations are expected in early November 2024. Meanwhile, preliminary determinations in the companion AD investigations of imports from China, Vietnam, and Thailand are due on August 22, 2024.
Robert Epstein, President and CEO of AJM Packaging Corporation and a member of APPC, commented, "Today’s announcement and the high duties being imposed validate the analysis we presented when we filed these cases and the extent of the problem that drove us to file in the first place. We appreciate the Commerce Department’s hard work and diligent efforts to administer our trade laws as Congress intended."
This development is crucial for the American paper plate industry, which has been struggling against unfair competition. By imposing these preliminary duties, the Commerce Department aims to level the playing field, ensuring that American producers can compete fairly. This move could also set a precedent for other industries facing similar challenges from foreign subsidies.
For more information on the petitions, see the APPC’s press release. For more on the ITC’s investigation, see the Commission’s press release. For more on the DOC’s investigation, see the agency’s press release.
