The United Steelworkers of America (USW) welcomed the decision on Monday of the U.S. Department of Commerce to impose preliminary countervailing duties on government subsidized imports of lightweight thermal paper (LWTP) from China in a trade case filed by Appleton Papers Inc. which could affect 1,780 paper workers in Wisconsin, Ohio, and Pennsylvania.

“It’s essential for the U.S. to hold the Chinese government accountable when it cheats on world trade rules by illegally subsidizing its industries—in this case harming the only two American producers of thermal paper,” USW International President Leo Gerard said in a statement released on Tuesday. “Until we level the playing field through strong trade law enforcement, China will keep cheating and keep stealing American jobs.”

Monday’s decision by the Department of Commerce will apply duties on thermal paper from certain Chinese producers and exporters ranging from 5.68 percent to 59.5 percent, with one producer receiving a duty of less than 1 percent.

Foreign governments subsidize industries when they provide financial or other assistance to benefit the production, manufacture, or exportation of goods, the statement said. Subsidies can take many forms, such as direct cash payments, preferential tax breaks, loans, and subsidized inputs.

Lightweight thermal paper products are used for point-of-sale retail receipts and coupons. The USW represents other Appleton thermal paper processing mills employing, 900 workers in Appleton, Wis., 330 workers in West Carrolton, Ohio, and 550 workers at Roaring Spring, Pa.

A separate dumping case against thermal paper imports from China and Germany is scheduled for a ruling on or about May 6. Any duties imposed in the dumping case on China would be in addition to the duties imposed in the anti-subsidy case. In 2007, the statement said, imports of thermal paper from China were valued at an estimated $53.3 million.

Posted 3/12/2008