US panel blocks duties on Chinese paper imports

Proposed duties on glossy paper imports from China were struck down by the US International Trade Commission on Tuesday, Reuters reported. The commission ruled that US industry wasn't materially injured by low-priced glossy paper from China, South Korea and Indonesia, going against its preliminary finding made in December 2006. The decision also contradicted the US Commerce Department's view that the imports were being sold in the US at subsidized and unfairly low prices. China, which is classified as a non-market economy under US trade law, would normally have escaped countervailing duties as it is difficult to determine subsidy levels in economies that are predominantly government-controlled, but the Commerce Department decided in March to exempt China from the policy and imposed countervailing duties of up to 44.25% and additional antidumping duties of up to 99.65% in October.