Every day at the News Media Alliance headquarters, a stack of newspapers arrives for myself and the staff. But with the Department of Commerce and the International Trade Commission currently considering tariffs on Canadian newsprint, those days of screen-free reading could be coming to an end.<\/p>\n
The fact that newsprint is being threatened is the work of one newsprint mill in the Pacific Northwest, NORPAC. In August 2017, NORPAC petitioned the United States Department of Commerce to begin applying tariffs to newsprint imported from Canada, claiming the imported paper was harming the U.S. newsprint industry. But NORPAC is not acting in the best interests of newsprint consumers or the U.S. paper industry at large \u2014 they are acting in their own interest and no one else\u2019s.<\/p>\n
The buying and selling of newsprint has always been regional without regard for the border. Consumers of newsprint \u2014 from newspaper and book publishers to telephone directory manufacturers \u2014 tend to buy newsprint in their region, close to their printing operations. The printers who typically utilize Canadian newsprint are those in the northeast and Midwest, where there are currently no U.S. mills operating.<\/p>\n
But those regions are not newsprint deserts because of unfair trade by Canadian paper mills. Rather, newsprint mills shut down or converted to producing other, more profitable paper products when the demand for newsprint fell, something that has been happening steadily for decades. Since 2000, the demand for newsprint in North America has dropped by 75 percent.<\/p>\n
But affordable Canadian paper has helped keep the printed news alive and flourishing well into the 21st century. With new tariffs, many smaller newspapers will feel their belts tightening. The combination of preliminary countervailing and antidumping duties increases the cost of imported newsprint by as much as 32 percent, and a number of newspapers have already experienced price increases and a disruption in supply. If the International Trade Commission and the Department of Commerce make these tariffs permanent in the coming months, it could lead some small local publishers to cut their print product entirely \u2014 or even shut their doors.<\/p>\n
Some, like NORPAC, may argue that by imposing duties on Canadian imports we\u2019re saving American jobs and boosting our own economy, but while that may sometimes be true for other industries, the opposite is true of newsprint.<\/p>\n
What we\u2019re seeing with the newsprint tariffs is not a government acting to try to better the economy for its citizens. Instead, it is \u201cpolitical arbitrage\u201d by one private investment group \u2014 where they are effectively looking to use the U.S. government to tax local and community newspapers across the United States in order to bolster their own bottom line.<\/p>\n
When considering whether to take NORPAC\u2019s claims seriously, the Department of Commerce excluded input from U.S. newsprint mills owned by Canadian companies \u2014 specifically Resolute Forest Products and White Birch. Excluding manufacturers who, during the period of investigation, had three functioning newsprint mills in the U.S. because they have sister mills in Canada shows an unwillingness to understand the borderless newsprint industry and the restructuring that has taken place in recent decades.<\/p>\n
If the tariffs on Canadian newsprint are allowed to stand, we\u2019re not only risking a centuries-old relationship with our neighbors to the north, but we\u2019re putting our own U.S. news industry in jeopardy. While the big national and regional papers may have less trouble finding the funds to keep their print editions coming, we could see small publishers lose footing, and those tiny local papers are some of the most vital members of our news community. Under the right conditions, those papers can find a way to maintain their footing, but if the newsprint industry can\u2019t support them, those communities will become news deserts, and that\u2019s a future none of us want.<\/p>\n
We may not be able to save the entire industry by keeping tariffs off our paper, but we can keep it thriving while we re-position ourselves for the years to come. Having affordable newsprint will help us do that.<\/p>\n
David Chavern serves as President & CEO of the News Media Alliance. Chavern has built a career spanning 30 years in executive strategic and operational roles, and most recently completed a decade-long tenure at the United States Chamber of Commerce.<\/i><\/b><\/p>\n","protected":false},"excerpt":{"rendered":"
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