25-6-2024 (WASHINTON) The United States International Trade Commission (USITC) has concluded that there are reasonable grounds to believe that the American paper shopping bag industry faces a threat from imports originating from several countries across Asia, Europe, and South America.
In an official statement released on 21 June, the USITC revealed that paper shopping bags from Malaysia, Cambodia, China, Colombia, India, Portugal, Taiwan, and Vietnam are potentially being sold in the US market at unfairly low prices. Furthermore, the commission suspects that manufacturers in China and India may be receiving government subsidies, thereby creating an uneven playing field for American producers.
The decision was reached unanimously, with Chair Amy A Karpel and Commissioners David S Johanson, Rhonda K Schmidtlein, and Jason E Kearns all voting in favour of the determination.
This affirmative ruling sets the stage for the implementation of protective trade measures. The USITC is now poised to impose countervailing duty orders on paper shopping bag imports from China and India, aimed at offsetting the effects of government subsidies. Additionally, anti-dumping duty orders will be levied on imports from all eight countries mentioned, to address the issue of products being sold at less than fair market value.
However, the commission’s investigation yielded a notable caveat. The USITC found no evidence of ‘critical circumstances’ regarding imports from Cambodia, China, India, Taiwan, and Vietnam. This determination means that paper shopping bags from these nations will not be subject to retroactive anti-dumping or countervailing duties.
This development comes amidst growing concerns about the competitiveness of US manufacturing in the global marketplace. The paper shopping bag sector, while seemingly niche, represents a significant segment of the packaging industry, with implications for retail, environmental sustainability, and international trade relations.
