AF&PA Raises Concerns Over Trade Pressures

Paper and packaging products stored in a North American distribution facility

AF&PA says new trade and regulatory pressures could affect the competitiveness of U.S. paper and packaging manufacturers. Image: Paper Advance

Industry News

American Forest & Paper Association (AF&PA) has raised concerns over several trade and regulatory developments that it says could affect the competitiveness of the U.S. forest products and paper industry.

In one statement, the association criticized the European Union’s decision to maintain the current framework of the EU Deforestation Regulation (EUDR) without adopting changes requested by U.S. forest products manufacturers.

“The EU had a clear opportunity in this review to make EUDR workable,” said Heidi Brock, president and CEO of AF&PA.

While supporting efforts to combat global deforestation, the association argued that current traceability and due diligence requirements do not align with the structure of North American fibre supply chains. According to AF&PA, the regulation could disrupt more than $3.5 billion in trade involving U.S. forest products.

AF&PA also said the European Commission’s proposed simplification measures would primarily benefit EU operators, increasing the competitive disadvantage faced by low-risk supply chains outside the European Union.

Separately, the organization also testified before the Office of the United States Trade Representative (USTR) as part of the Section 301 investigation into structural excess capacity and non-market practices affecting global paper manufacturing.

David Ross, AF&PA’s director of government affairs, called for an evidence-based approach aimed at preserving market-based competition and a level playing field for U.S. pulp and paper manufacturers.

In its testimony, the association pointed to major capacity additions and rising exports that may not reflect actual market demand, particularly in China. AF&PA also urged U.S. authorities to examine risks tied to transshipment and downstream conversion practices that could circumvent existing trade measures.

At the same time, the organization warned that some trade remedies could negatively affect the U.S. industry itself if they increase costs for industrial machinery and equipment used in mill modernization projects.

According to AF&PA, higher machinery and equipment costs could slow investment, delay modernization projects and weaken the global competitiveness of U.S. manufacturers.

The American Forest & Paper Association represents the U.S. forest products, paper and packaging industry. The sector employs more than 925,000 people in the United States and generates more than $435 billion annually in manufactured products.