APP 'expresses surprise' at EC investigation

Asia Pulp and Paper (APP) has published a statement to ‘express its surprise’ that the European Commission has launched an investigation into accusations that the Chinese government provides subsidies to its domestic paper industries. This is the first anti-subsidy investigation by the EU against China, and has been initiated by members of CEPIFINE, the European association of fine paper producers. 

‘We have serious concerns about the validity and legitimacy of the initiation of this subsidy investigation which the European Commission has recently initiated. This new wave of protectionism threatens to have negative consequences for EU industry and consumers,’ said Stuart Andrews, APP Europe’s spokesperson. 

The company said in a statement: ‘APP can unequivocally state that it does not receive any subsidies from the Chinese government. APP will cooperate in a timely and transparent fashion with the European Commission and will prove that our competitive advantage is the result of long term strategic investments, state of the art technology and effective processes, fully in line with international trade law and practices. 

‘APP has invested extensively in new technologies and equipment – making production not only more efficient, but also environmentally friendly and sustainable. Initiating another protectionist case on alleged government subsidies is a measure designed to try to protect these European companies’ market share through unfair trade barriers – rather than improving their own efficiencies and competitiveness.   

‘APP understands that imports of Chinese paper represent a negligible share of the European market.  It is inconceivable that such a low volume of imports could have any meaningful adverse effects on European paper producers. The combined effects of both anti-dumping and anti-subsidy investigations form an abuse of the trade defense instruments by certain European paper producers. 

‘The mere initiation of a further investigation against Chinese paper producers can impact the printing, publishing and other downstream industries based in Europe who will face higher costs and a decrease in their own global competitiveness, due to the additional market distorting measures that could be proposed. APP would like to encourage downstream industries to fight against this allegation by submitting comments on the injury they face from reduced competition through the European Commission’s users questionnaires before May 25, 2010.’ 

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