[Congressional Record Volume 143, Number 150 (Friday, October 31, 1997)]
[Extensions of Remarks]
[Page E2158]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  UNFAIR WTO ACTION INITIATED BY THE MEXICAN MINISTRY OF COMMERCE AND 
             INDUSTRY AGAINST UNITED STATES PAPER COMPANIES

                                 ______
                                 

                            HON. JAY DICKEY

                              of arkansas

                    in the house of representatives

                        Friday, October 31, 1997

  Mr. DICKEY. Mr. Speaker, it has been brought to my attention that 
United States paper producers have encountered serious trade problems 
in Mexico relating to the World Trade Organization Antidumping code 
procedures. It appears that Mexico's Ministry of Commerce and Industry 
has ignored WTO rules relating to United States exports of apples and 
high fructose corn syrup. The result of not adhering to the rules on 
trade cases leads to lost business for our producers as their 
protectionism shields their domestic producers.
  I wish to insert into the Record a copy of a letter from the American 
Forest and Paper Association [AF&PA] to Mr. Peter Allgeier, the 
Assistant U.S. Trade Representative for the Western Hemisphere, of a 
third case that involves U.S. cut-size bond. There are six paper mills 
in my district in Arkansas. All six are members of AF&PA. Two are 
currently exporting bond paper to Mexico and could be adversely 
affected if the WTO Antidumping Code is not followed. The result could 
be a loss of export sales for up to 6 months while the final decision 
on antidumping is being decided.
  Free and fair trade with our neighbors must be the goal of each 
nation. We in Congress must insist that international rules of trade be 
adhered to. I will be following this matter closely to determine 
whether further action by Congress is not needed. Today, it may only be 
apples, corn syrup, and paper products. But, tomorrow, it could be a 
product produced in your district.

                                                 American Forest &


                                            Paper Association,

                                  Washington, DC, October 9, 1997.
     Mr. Peter Allgeier,
     Assistant USTR for the Western Hemisphere, Office of the U.S. 
         Trade Representative, Washington, DC.
       Dear Peter: On May 27, 1997 the Mexican Ministry of 
     Commerce and Industry (SECOFI) initiated an anti-dumping 
     investigation against U.S. producers of cut-size bond paper. 
     While individual U.S. paper producers are responsible for 
     responding to the anti-dumping questionnaire, AF&PA is 
     closely monitoring Mexico's anti-dumping process to ensure 
     that it does not violate international trade rules and is not 
     used as a tool to limit imports of paper products from the 
     U.S. We expect that the preliminary anti-dumping 
     determination in this case will be issued in late November.
       In this regard, we have noted with mounting concern reports 
     regarding Mexico's actions in the anti-dumping investigation 
     regarding high fructose corn syrup (on which USTR has sought 
     consultations in the WTO) and, more recently, U.S. apples. 
     AF&PA is deeply concerned that these actions by SECOFI are 
     not isolated instances but rather may represent a developing 
     trend toward politicization of the anti-dumping process in a 
     manner calculated to roll back the market-opening benefits of 
     NAFTA.
       You may recall U.S. paper suppliers were already the target 
     of Mexico's anti-dumping charges in Mexico in 1993-94. In 
     that case, SECOFI arbitrarily used third country sales to 
     calculate the residual dumping rate. Fortunately, the case 
     was ultimately dismissed due to a negative final injury 
     determination. Moreover, ISAC 12 cited the use of anti-
     dumping procedures against U.S. paper suppliers as a problem 
     to be addressed in our submission for the Administration's 
     NAFTA report.
       We understand that USTR will meet with Mexican officials to 
     discuss some of the issues in the apples case in the near 
     future. At that time, we urge you to take an appropriate 
     opportunity to indicate USTR's concern that similar 
     irregularities be avoided in the pending investigation 
     covering cut-size bond paper.
       As always, your help with this problem is deeply 
     appreciated.
           Sincerely yours,
                                                 Maureen R. Smith,
                                    Vice President, International.

     

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