The imposition of import tariffs by the US would have a significant impact on EU pulp, paper and board exports. While a positive issue to transatlantic negotiations may still be possible, Europe’s pulp and paper industry in coordination with the European Commission has been preparing for the effects of a potential EU retaliation.
On March 12, the United States government-imposed tariffs on steel and aluminium and signalled that it may impose tariffs on a broader range of EU goods, potentially including pulp and paper products, in April. Cepi, representing the European pulp and paper industry, is now taking part in a consultation launched by the European Commission on the list of American products targeted by European retaliation measures.
The list of products presented is open to consultation by industry representatives until 26 March. It will then be submitted to EU member states for approval. The Commission is aiming for entry into force in mid-April.
Cepi advocates for a ‘negotiation first’ approach. But in the event negotiations fail and US tariffs on EU exports of pulp, paper or board would be imposed, Cepi urges the EU Commission:
- to respond quickly, vigorously and in a proportionate manner with EU restrictions on imports of US goods and services. If, however, US tariffs do not cover EU pulp, paper and board products, such EU retaliation should similarly exclude US pulp, paper and board products,
- to exclude from such EU retaliation list products that risk being in short supply in the EU, and
- to monitor and address possible trade flows from third countries that may flood the EU market because of US tariffs, including by means of using EU trade defence instruments to protect the EU industry.
The EU and the US are very important trade partners in pulp, paper and board. The EU imports from the US around 900 000 tonnes per year of pulp from the US and less paper and board, close to 600 000 tonnes. On the contrary, the EU exports a lot of paper and board to the US, about 1 600 000 tonnes per year, and less pulp, around 350 000 tonnes.
Since a multilateral agreement of all major pulp and paper producers in January 2004, there have been no import tariffs on both sides of the Atlantic, to the benefit of both US and EU businesses and consumers.
Jori Ringman, Cepi Director General, says:
“Cepi regrets the imposition of US tariffs and the increased risk of a trade war and supply chain disruptions this creates. Against this background, Cepi calls on the European Commission to continue negotiations to avoid further supply chain disruptions and prevent the imposition of additional tariffs.”
“It is not just about the competitiveness of our sector, it is about the EU and US consumers who need basic hygiene products, EU and US workers in factories losing their jobs, and ripple effects on the wide range of sectors using paper packaging on both sides of the Atlantic.”
