China's Illegal paper subsidies, 2002-2009
Posted by scapozzola on 07/01/2010
A new report by the Economic Policy Institute (EPI) estimates that China has subsidized its paper industry by more than $33 billion between 2002-2009.
The subsidies to China’s paper industry identified in the study, such as those for wood pulp, energy, and direct company subsidies, are all GATT/WTO-illegal, and the U.S. Commerce Department has found that China is guilty of subsidizing its coated paper industry.
Several U.S. paper producers, including Appleton Coated, NewPage, and Sappi reacted favorably to the EPI study. In a statement, the paper companies said that China's massive subsidies have "jeopardized production and jobs in the U.S."
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