EU Tariffs on Paper Are Unprofitable for Polish Economy

The introduction of tariffs on paper imported from Asia will have a negative impact on the domestic market of paper and printing – we can sum up the opinion of the Globalization Institute.

What the European Commission has planned for May is to introduce prohibitive customs duties on coated paper imported from China. Polish politicians have supported the interventionist project, despite the opposition of the domestic printing industry – the branch in which more than 100 thousand people are employed.

- Introduction of the restrictions on the cheap paper import will result in a prices increase on the European market and will hamper the development of the industry - explains Dr. Tomasz Teluk, president of the Globalization Institute. - It is curious that the sanctions are on import of the product from China, a country that invented paper production as early as the second century BC – Tomasz Teluk reminds.

For the introduction of protectionist barriers, often the ecological arguments are used. According to the opinion of Globalization Institute experts, duties on paper are a manifestation of  so-called "green protectionism" – which is about forcing regulations based on the ideology of absolute protection of the environment. The main justification for the new duties on paper was the prevention of illegal logging in Asia.

In the opinion of experts from the Globalization Institute it is a false argument. For the citizens of Central and Eastern Europe it is more advantageous to buy imported paper and preserve their natural resources. The best example is Latvia, where timber exports are growing at 50 percent per year, amounting in 2010 - 0.5 billion lats (715 million euros). And it gets out of control.

- However, resources of wood are declining. While 1000 years ago forests occupied 80 percent of  Latvia's surface, now it is only 50 percent. Frequent changes of ownership and poor management of resources causes that exploitation is more intense than afforestation - Tomasz Teluk warns.

A similar situation may take place in Poland. Central and Eastern Europe is becoming a major source of supply for countries such as Germany and the UK.

Therefore, according to the opinion of Globalization Institute, from a consumer perspective it does not matter at what cost is the paper produced in China. Subsidization and dumping of paper purchased in China, for the consumers in Poland is better than the exploitation of their resources at higher prices.

For the printing industry the most important thing is the access to cheaper material from abroad. That is why Poland should come out against the new duties that could lead to trade war with China - summarizes the Globalization Institute.