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December 4, 2017 the Hon. Wilbur L. Ross, Jr., Secretary United States Department of Commerce 1401 Constitution Avenue, NW Washi

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December 4, 2017 the Hon. Wilbur L. Ross, Jr., Secretary United States Department of Commerce 1401 Constitution Avenue, NW Washi December 4, 2017 The Hon. Wilbur L. Ross, Jr., Secretary United States Department of Commerce 1401 Constitution Avenue, NW Washington, D.C. 20230 Re: Uncoated Groundwood Paper from Canada, Inv. Nos. C–122–862 and A-122-861 Dear Secretary Ross: On behalf of the thousands of employees working at the more than 1,100 newspapers that we publish in cities and towns across the United States, we urge you to heavily scrutinize the antidumping and countervailing duty petitions filed by North Pacific Paper Company (NORPAC) regarding uncoated groundwood paper from Canada, the paper used in newspaper production. We believe that these cases do not warrant the imposition of duties, which would have a very severe impact on our industry and many communities across the United States. NORPAC’s petitions are based on incorrect assessments of a changing market, and appear to be driven by the short-term investment strategies of the company’s hedge fund owners. The stated objectives of the petitions are flatly inconsistent with the views of the broader paper industry in the United States. The print newspaper industry has experienced an unprecedented decline for more than a decade as readers switch to digital media. Print subscriptions have declined more than 30 percent in the last ten years. Although newspapers have successfully increased digital readership, online advertising has proven to be much less lucrative than print advertising. As a result, newspapers have struggled to replace print revenue with online revenue, and print advertising continues to be the primary revenue source for local journalism. If Canadian imports of uncoated groundwood paper are subject to duties, prices in the whole newsprint market will be shocked and our supply chains will suffer. Some paper manufacturers see the pending tariffs as a harbinger for further declines in the newsprint market and have indicated that they will convert operations to manufacture more profitable paper products. With fewer producers of newsprint, newspapers would face even higher costs or a disruption in supply of this critical raw material. Facing increased costs of newsprint across all suppliers, many small-town papers will be at risk of failing. To survive, some newspapers may resort to increasing print subscription prices, which would only exacerbate the severe challenges facing print newspapers. As to the U.S. paper industry, the industrywide shift from print newspapers to digital news consumption • not imports from Canada • has caused a decline in demand for uncoated groundwood paper. Conversely, in recent years, the market share of Canadian uncoated groundwood paper imports has actually declined. Equally concerning, it appears that North Pacific’s petitions may be driven by the economic strategies of the company’s hedge fund owners, One Rock Capital Partners, which purchased NORPAC in November 2016. NORPAC’s petitions do not reflect the views of the paper industry in the United States. In fact, the antidumping and countervailing duty petitions are opposed by other U.S. producers of newsprint and the American Forest and Paper Association, which represents the broader U.S. paper industry. Given the outlier status of NORPAC, it appears that One Rock Capital Partners may be using the petitions as a means of increasing the short-term value of this one mill, without any regard for the dramatic negative implications for U.S. newspapers in thousands of small cities and towns. Local newspapers are the core of our communities’ access to local news about governmental activity, local economic and business issues, high school sports, and milestones for local citizens. Our thousands of employees and millions of readers are counting on you to protect the industry from NORPAC’s brazen attempt to manipulate the trade laws in a manner that would inflict widespread harm on the newspaper industry, without the support of others in the domestic paper industry. Respectfully submitted, Alaska Star Homer News Juneau Empire Eagle River, AK Homer, AK Juneau, AK Peninsula Clarion Birmingham Business Journal Eufaula Tribune Kenai, AK Birmingham, AL Eufaula, AL Gadsden Times Headland Observer Huntsville Times, Gadsden, AL Dothan, AL Huntsville, AL Montgomery Advertiser Press Register Opelika-Auburn News Montgomery, AL Mobile, AL Opelika, AL St. Clair News-Aegis The Cullman Times The Dothan Eagle Pell City, AL Cullman, AL Dothan, AL The News-Courier The North Jefferson News The Prattville Progress Athens, AL Gardendale, AL Prattville, AL The Tuscaloosa News Alma Journal Booneville Democrat Tuscaloosa, AL Van Buren, AR Booneville, AR Charleston Express Greenwood Democrat Hope Star Greenwood, AR Greenwood, AR Hope, AR Hot Springs Village Voice La Prensa Libre Del Noreste de Arkansas Hot Springs Village, AR Springdale, AR Log Cabin Democrat Lonoke County Democrat Nevada County Picayune Conway, AR North Little Rock, AR Hope, AR Newport Independent North Little Rock Times Paris Express Newport, AR North Little Rock, AR Paris, AR Pine Bluff Commercial Press Argus Courier Southwest Times Record Pine Bluff, AR Van Buren, AR Fort Smith, AR The Baxter Bulletin The Daily Siftings Herald The Gurdon Times Mountain Home, AR Arkadelphia, AR Arkadelphia, AR The Stuttgart Daily Leader The Sun-Times Van Buren County Democrat Stuttgart, AR Heber Springs, AR Clinton, AR White Hall Journal Arizona Business Gazette Arizona Daily Sun White Hall, AR Phoenix, AZ Flagstaff, AZ Phoenix Business Journal Adobe Press Brentwood News Phoenix, AZ Santa Maria, CA Brentwood, CA Chico Enterprise-Record Daily Democrat Daily News Chico, CA Woodland, CA Red Bluff, CA Desert Dispatch Dunsmuir News El Cerrito Albany Journal Barstow, CA Mount Shasta, CA Walnut Creek, CA El Mojave Fort Bragg Advocate-News Hispanos Unidos Victorville, CA Fort Bragg, CA Escondido, CA Inland Valley Daily Bulletin Laguna Woods Globe Lake County Record-Bee Ontario, CA Laguna Woods, CA Lakeport, CA Los Banos Enterprise Lucerne Valley Leader Marin Independent Journal Los Banos, CA Victorville, CA San Rafael, CA Mendocino Beacon Merced Sun-Star Mercury-Register Fort Bragg, CA Merced, CA Chico, CA Mount Shasta Herald Orange County Excelsior Palo Alto Daily News Mount Shasta, CA Santa Ana, CA Menlo Park, CA Paradise Post Pasadena Star-News Record Searchlight Paradise, CA Pasadena, CA Redding, CA Redlands Daily Facts Sacramento Business Journal San Francisco Business Times Redlands, CA Sacramento, CA San Francisco, CA San Gabriel Valley Tribune Santa Cruz Sentinel Santa Maria Times Monrovia, VA Scotts Valley, CA Santa Maria, CA Selma Enterprise Silicon Valley Business Journal Siskiyou Daily News Selma, CA San Jose, CA Yreka, CA St Helena Star The Reporter The Argus Saint Helena, CA Vacaville, CA Fremont, CA The Cambrian The Chowchilla News The Daily Independent Cambria, CA Chowchilla, CA Ridgecrest, CA The Daily Press The Daily Review The Desert Sun Victorville, CA Hayward, CA Palm Springs, CA The Gridley Herald The Hanford Sentinel The Kingsburg Recorder Gridley, CA Hanford, CA Selma, CA The Lompoc Record The Monterey Herald The Napa Valley Register Lompoc, CA Monterey, CA Napa, CA The Salinas Californian The San Bernardino County Sun The Stockton Record Salinas, CA San Bernardino, CA Stockton, CA The Taft Midway Driller The Tribune The Weekly Calistogan Taft, CA San Luis Obispo, Ca Calistoga, CA The Whittier Daily News The Willits News Times-Herald Whittier, CA Willits, CA Vallejo, CA Times-Standard Tri-Valley Times Tulare Advance-Register Eureka, CA Pleasanton, CA Visalia, CA Ukiah Daily Journal Visalia Times-Delta Weed Press Ukiah, CA Visalia, CA Mount Shasta, CA Ag Journal Bent County Democrat Brighton Standard Blade La Junta, CO Las Animas, CO Brighton, CO Brush News-Tribune Clear Creek Courant Colorado Hometown Weekly Brush, CO Idaho Springs, CO Boulder, CO Commerce City Sentinel Express Daily Record Daily Times-Call Brighton, CO Canon City, CO Longmont, CO Denver Business Journal Estes Park Trail-Gazette Fort Lupton Press Denver, CO Estes Park, CO Brighton, CO Fort Morgan Times Journal-Advocate Julesburg Advocate Fort Morgan, CO Sterling, CO Julesburg, CO La Junta Tribune-Democrat Loveland Daily Reporter-Herald Norwood Post La Junta, CO Loveland, CO Telluride, CO The Akron News-Reporter The Burlington Record The Canyon Courier Akron, CO Burlington, CO Evergreen, CO The Coloradoan The Daily Camera The Fowler Tribune Fort Collins, CO Boulder, CO Fowler, CO The Lamar Ledger Windsor Beacon Darien News Lamar, CO Windsor, CO Bridgeport, CT Fairfield Citizen-News Greenwich Time Milford Orange Bulletin Bridgeport, CT Old Greenwich, CT New Haven, CT New Canaan News Norwich Bulletin Shoreline Times New Canaan, CT Norwich, CT New Haven, CT The Advocate The Hour The Litchfield County Times Stamford, CT Norwalk, CT Torrington, CT The Middletown Press The News-Times The Register Citizen New Haven, CT Danbury, CT Torrington, CT The Wilton Villager West Hartford News Westport News Norwalk, CT New Haven, CT Bridgeport, CT Delaware Wave Smyrna/Clayton Sun-Times Sussex Countian Bethany Beach, DE Smyrna, DE Georgetown, DE The Middletown Transcript Cedar Key Beacon Chiefland Citizen Middletown, DE Cedar Key, FL Chiefland, FL Citrus County Chronicle Crestview News Bulletin Destin Log Crystal River, FL Crestview, FL Destin, FL Gadsden County Times Holmes County Times-Advertiser Jackson County Floridian Quincy, FL Chipley, FL Marianna, FL Jacksonville Business Journal Lehigh Acres News-Star Mayo Free Press Jacksonville, FL Lehigh Acres, FL Live Oak, FL News Chief Ocala Star-Banner Orlando Business
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