January 10, 2006

Crapo Commends Repeal of China Trade Tariff

American producers to benefit from lifting of duty

Washington, DC â?? American paper producers can look forward to continued access to Chinaâ??s market after Chinaâ??s decision today to repeal an antidumping duty on U.S. exports of kraft linerboard, which is a product used to make corrugated boxes. Idaho Senator Mike Crapo, Chairman of the Banking Subcommittee on International Trade and Finance and member of the Senate Finance Committee, sent a letter to the Chinese ambassador to the U.S. last year when China took steps to implement the tariff on the linerboard exported from the U.S. to China. United States Trade Representative Rob Portman negotiated the repeal as the duty appeared to be in violation of World Trade Organization (WTO) rules. Corrugated boxes are often used by manufacturers who supply high value or heavier goods to deter shifting and damage to products in the shipping process. â??This action shows a positive development in the trade relationship the U.S. has with China,â?? Crapo said. â??I commend Ambassador Portman and our other trade negotiators for their efforts to negotiate this repeal with the Chinese. The repeal of this duty is essential toward ensuring the continued access to a vital market for the U.S. forest products industry.â??China is the second largest export market for U.S. kraft linerboard producers. For 2004, exports of U.S. kraft linerboard to China exceeded $130 million.