Magazine article Editor & Publisher

U.S. Trade Group vs. U.S. Manufacturer

Magazine article Editor & Publisher

U.S. Trade Group vs. U.S. Manufacturer

Article excerpt

WHEN THE INTERNATIONAL Trade Commission found dumping by foreign manufacturers of large newspaper presses threatened the U.S. industry with material injury the Newspaper Association of America was ready warning that the decision could "distort" the market's competitive balance and "discourage" innovation.

In a statement released immediately after the ITC decision NAA president and CEO John Sturm said the resulting duties "artificially tilted the level of competition in Pavor of the domestic printing press industry." possibly limiting the availability of presses in the U.S. and hurting their quality in the future.

The next day Sturm told E&P: "This case was different from most dumping cases because there was only one U.S. manufacturer involved. Potentially that could create a virtual monopoly. We have laws against monopolies,"

The NAA's position was essentially unchanged since the federal government opened its investigation in 1995. NAA's position as submitted by attorney Floyd Abrams to the ITC after that agency's final hearing last year denied the newspaper industry is a stagnant business that regards press suppliers or presses as interchangeable. It argued that U.S. papers encouraged foreign manufacturers "when domestic suppliers were unresponsive to their demands for technological progress."

Now press innovation "is even more critical" to achieve the quality of color printing and "level of tailored content" newspaper customers expect the statement said. It acknowledges the importance of Goss in helping publishers combat newsprint waste meet environmental and safety needs and attain printing objectives but says no one supplier or technical approach can satisfy all publishers" needs.

Because the best solutions emerge from "a healthy rivalry" NAA stated restrictions of free market forces "will undermine that goal."

Goss it appeared shared this view. What it questioned however was whether that rivalry has been "healthy."

The day of Sturm's monopoly monition, Goss Graphic Systems president Robert M. Kuhn issued his own statement. The ITC's determination, he said, served to ensure the kind of "fair and competitive marketplace" that fosters "innovations targeted for U. …

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