In June 2023, the U.S. Department of Commerce initiated antidumping duty (AD) and countervailing duty (CVD) investigations into imports of certain paper shopping bags from India and China. The investigations aim to determine whether these products are being sold at unfairly low prices (dumping) or benefiting from unfair government subsidies, potentially harming U.S. manufacturers.
Preliminary findings in October 2023 indicated that certain Chinese producers received substantial subsidies, with rates up to 144.03%, while Indian producers also benefited from subsidies, though at lower rates.
In April 2024, the U.S. International Trade Commission (USITC) determined that U.S. paper bag manufacturers were materially injured by these imports, paving the way for the imposition of tariffs.
As a result, the U.S. Department of Commerce is expected to issue antidumping duty orders on paper shopping bags from all named countries and countervailing duty orders on imports from China and India. These measures aim to level the playing field for U.S. manufacturers and address concerns over unfair trade practices.
